WP Energy Plc, Thailand's second-largest liquefied petroleum gas (LPG) trader by sales volume, expects revenue to increase by 9.4% to 17 billion baht this year, up from 15.5 billion baht in 2022, though the government's LPG price subsidy is scheduled to expire at the end of this month.
The domestic price of LPG is currently 423 baht for a 15-kilogramme cylinder, compared with the market price of 466 baht per cylinder, according to the Oil Fuel Fund Office.
Without the subsidy, people have to pay more to buy LPG, which can be used as cooking gas.
WP Energy is upbeat about the LPG business, believing its sales will grow by 7.3% to 800,000 tonnes in 2023, with 775,000 tonnes sold domestically and the remainder exported to foreign countries.
Chomkamol Poompanmoung, chief executive of WP Energy, attributed higher sales to more purchases from both domestic and overseas markets, with LPG consumption coming from various sectors, including households and automotive sectors.
The company's five LPG receiving terminals and 165 LPG-refilling factories are also among the factors that maintain the growth of the LPG business.
In the first quarter of 2023, the firm's revenue soared by 35% year-on-year to 4.5 billion baht, with net profit rising 1% to 38 million baht.
The companpy plans to further boost it LPG exports.
WP Energy diversified into the clean energy business in order to not solely depend on a single source of revenue.
The company is allocating a 1-billion-baht budget to support its businesses this year. Half of the money will go to its rooftop solar panel installation service, which is provided under private power purchase agreements.
WP Energy went into the rooftop solar power business in 2020 through its subsidiary WP Sollar Co, which, together with business partners, set up this renewable energy business.
For more than three years, the company has continued to expand the business, with a total electricity generation capacity of 10 megawatts under 15 private power purchase agreements.
Last year alone, it added 8MW of new capacity.
WP Energy plans to increase the capacity to 30MW this year and aims to reach a target of 100MW by 2025. Its target customers are public buildings, hospitals, academic institutions and factories.
According to Ms Chomkamol, 300 million baht of the budget will be spent on more investment in LPG facilities and the remaining 200 million baht will support new businesses.