SET-listed PTG Energy is studying expanding to the ethanol business even as its key retail oil business is expected to improve in the second half of the year with a higher marketing margin, says president and chief executive Pitak Ratchakitprakarn.
In the first quarter PTG had cash-in-hand and working capital of 700 million baht to be used for expanding its retail oil networks to every district nationwide. It is also looking at developing renewable businesses, including biodiesel B100.
First-quarter oil sales at PTG stations increased 24% year-on-year, but gross profit margin grew merely to 5% from 4.9%.
"We expect the marketing margin to improve in the latter half, resulting in a better gross profit margin," said Mr Pitak.
It opened 19 new petrol stations in the first quarter and PTG targets 1,000 total petrol stations in operation by year-end. Sales at petrol stations account for 78% of PTG's total revenue, with 22% supplies to industrial and other sectors.
The company will open its ninth oil depot in August in Nakhon Sawan with a storage capacity of 7 million litres. The new depot will improve logistics efficiency and reduce transport cost for delivering petrol to Chai Nat, Phichit, Tak, Uthai Thani, and Kamphaeng Phet.
PTG shares closed yesterday on the SET at 3.50 baht in flat trade worth 9.84 million baht.