SET-listed PTG Energy, a local oil trader, plans to grow its non-oil businesses such as coffee shops and electric vehicle charging services this year to earn more profit following a dip during the first half of 2023, says president Pitak Ratchakitprakarn.
The company operates a coffee shop business under the Punthai Coffee and Coffee World brands. It also runs Max Mart convenience stores, Max Autobacs car care services, and liquefied petroleum gas (LPG) filling stations.
The number of these non-oil business facilities totalled 1,805 as of the end of June. They are expected to increase to 2,448 by the end of this year, said Mr Pitak.
Sales from the non-oil segment are expected to grow by 20-30% this year, with LPG sales increasing by 75-80%, he said.
In terms of revenue, the LPG business generated 305 million baht during the first half of 2023, a year-on-year increase of 35%.
The company plans to increase the number of LPG filling stations to 574 by year-end, up from 527 in mid-2023.
PTG recorded revenue growth of 70% for Punthai Coffee year-on-year to 557 million baht in the first half of 2023.
Max Mart revenue rose by 49% year-on-year to 972 million baht during the same period.
Mr Pitak expects the proportion of PTG's gross profit from non-oil businesses to increase to 50% within 3-4 years, up from 20% at the end of June.
In 2023, PTG is allocating 4-5 billion baht to grow its businesses, a decrease from the 5-6 billion planned earlier. Roughly 1.5 to 2 billion baht is allotted to support non-oil businesses.
PTG posted total revenue of 50.8 billion baht in the second quarter of 2023, a year-on-year increase of 9.7%, but net profit plunged by 80% to 116 million baht.
From January to June, total revenue increased by 19% year-on-year to 102 billion baht, while net profit dropped by 48% to 400 million baht.
Oil sales during this six-month period increased by 14% year-on-year to 3 billion litres.
PTG continues to expand its petrol station numbers, reaching 2,166 as of the middle of this year and projected to increase to 2,206 by year-end.