Banpu's shares improved slightly after the company decided not to set a provision for damages set by the Civil Court in a legal dispute with Siva Nganthavee's group over Hongsa Power Co in Laos.
Banpu submitted a statement to the Stock Exchange of Thailand on Sept 20 regarding the court ruling that ordered the company to pay damages totalling 33 billion baht to Mr Siva and his group for opportunity loss.
Analysts had said Banpu would have to set a provision of more than 4 billion baht this year.
But the coal miner said it has decided not to set a provision after reviewing the case thoroughly.
Chief executive Chanin Vongkusolkit said the company is confident of its "solid facts and legal grounds" to be used in appealing the court's judgement and therefore sees no need to set a provision.
Banpu has operated for 30 years in good faith and with legitimacy and good governance for the benefit of shareholders, investors and society, he said.
But Nalinrat Kittikumpolrat, an analyst at Asia Plus Securities, said the decision will not restore investor confidence in Banpu shares.
Shares regained seven baht or 1.79% to close at 399 baht yesterday in trade worth 803 million baht.
The stock has shed almost 12% in the past week after Asia Plus said the appeals ruling remains a risk for Banpu's share prices.
Ms Nalinrat pointed out that Mr Siva's group has won its case against the Lao government.
"That victory reflects badly on Banpu's chances of winning the appeal. But analysts do not yet know all the details, so it's hard to say what will happen next," she added.
