PTG earmarks B5bn for pumps, expansion
Goal is No.2 in Thai market after outlay
SET-listed PTG Energy Plc (PTG), the owner of the PT oil pump brand, says it will allocate 5 billion baht to further expand into non-oil businesses and upgrade existing facilities.
President and chief executive Pitak Ratchakitprakarn said 3.9 billion baht of the total investment budget is expected to go towards expanding oil facilities from oil pumps to inventories; 600 million is for non-oil segments; and the remaining 500 million is for new businesses.
The budget is a record high, up from last year’s 4 billion baht and 2018’s 3.35 billion.
Mr Pitak said PTG plans to increase its total oil pumps to 2,500 nationwide by the end of 2022, up from 2,027 at the end of last year.
PTG has been investing in oil pump expansion for four years in its aim to become the second largest oil retailer in Thailand.
Last year, PTG sold 4.68 billion litres of oil for a 15.6% market share, up 19.4% from 2018 at 3.92 billion litres and a 14.2% market share, but behind national oil and gas conglomerate PTT Plc, which controls 38.8%.
In 2018 PTG ranked third with a market share of 14.2%, behind PTT at 39.6% and Bangchak Corporation Plc at 15.2%.
Mr Pitak said this year PTG expects trading volume will grow in a range of 15-20% from 4.62 billion litres.
However, growth of oil sales in the first two months this year was 13%, slightly lower than the yearly estimate, as the coronavirus will significantly reduce travel in the coming months leading to further drops in oil trading.
He said fierce competition among oil trading peers have encouraged PTG to diversify into non-oil segments such as food and beverage and car care services that show higher margins than oil trading.
Over the last four years PTG has focused on non-oil segment investments and this year it plans to allocate 600 million baht to businesses such as Pan Thai Coffee, Coffee World, Autobacs, Pro Truck and Banjit Restaurant.
PTG is also allocating another 500 million baht for the PPP Green Complex, a palm oil plant in Prachuap Khiri Khan, to make cooking oil and biodiesel. This project is a joint venture between PTG, Thachang Green Energy Co and RD Kasetpattana Co.
The PPP Green Complex, which opened last October, is a fully integrated palm oil production facility, as well as a biomass and biogas power plant with a 120-million-litre oil depot facility.
This plant has the capacity to produce 450,000 litres of biodiesel per day and a capacity of 200,000 litres of vegetable oil per day.
Biodiesel B100 will be used as a component in diesel in proportions aligning to the government’s biofuel policy.