PTTOR eyes non-oil growth
Company upbeat on markets overseas
PTT Oil and Retail Business Plc (PTTOR) aims to focus more on expansion of non-oil business as this segment generates higher margins.
Buranin Rattanasombat, senior executive vice-president for planning, said the company is upbeat about marketing strategies for the non-oil business rather than increasing its network of petrol stations.
Margins for the non-oil segment are in the double digits, while the oil business has single-digit margins, he said.
Mr Buranin said PTTOR prioritised expansion of petrol stations in the past before increasing its non-oil business such as food and beverage shops, convenience stores and car care services on land at each station.
"PTTOR will increase the number of branches of Cafe Amazon, Jiffy, Texas Chicken, Hua Seng Hong Dim Sum and Daddy Dough, lubricants shops and PTT Fit Auto at standalone locations, without oil stations," he said.
The plan is a part of PTTOR's business revamp to accelerate overall administration, said Mr Buranin.
He said PTTOR is optimistic about the expansion of its non-oil business in markets overseas.
"The company plans to use flexible administration to handle digital disruption and new technologies in the oil retail market," he said.
Mr Buranin said the market is becoming mature from the widespread consumption of biofuels and electric vehicles (EVs).
"PTTOR's non-oil segment should take more chances in the near future," he said.
Mr Buranin said some countries have monopolies run by local oil companies, encouraging PTTOR to expand its non-oil business instead of increasing the number of petrol stations in each market.
Cafe Amazon has expanded to 2,700 branches across Asia, including outlets in Oman, Singapore and Japan.
In addition, PTTOR's business revamp was transformed three months ago to proceed with a filing to list on the stock market.
The transformation included the renovation of 1,835 PTT petrol stations nationwide as well as 281 stations abroad.
Mr Buranin said its overseas business will be similar to that in Thailand, with an emphasis on supporting surrounding communities.
He said PTTOR is positioned as a happy workplace open to first-time workers and provides benefits to local communities.
With the company's business direction, it expects earnings before interest, taxes, depreciation and amortisation (ebitda) from oil stations to decline from 70%, while ebitda for the non-oil segment will increase from 24%.
Moreover, PTTOR plans to install 17 EV charging stations at stations this year, increasing to 25 stations in 2020.