SET-listed PTG Energy, a local oil trader, expects its oil sales to grow by 10-15% in 2023, mainly attributed to the recovery of tourism businesses.
Last year, the company sold around 4.9 billion litres of oil.
Oil sales continue to increase, though the number of domestic and foreign tourists are still less than the level tallied in 2019 before Covid-19 hit Thailand, said Pitak Ratchakitprakarn, president of PTG Energy.
More travelling is good for the company's business, which was affected during the pandemic when the government imposed harsh lockdown measures, including a night-time curfew and a work-from-home guideline, to contain the spread of the highly contagious virus.
In 2023, the company reduced its investment budget to a range of 3-4 billion baht, down from a previous target of 5-6 billion baht, because the domestic economy was growing slower than expected, said Mr Pitak.
It will spend 1-1.5 billion baht developing oil trade facilities. Some 1-1.5 billion baht will go to non-oil businesses, and the remainder will support new business plans.
PTG aims to increase the number of its petrol stations to 2,206, up from 2,176, by the end of this year. It will also expand the number of liquefied petroleum gas stations to 574, up from 537.
In the non-oil segment, the company will increase its Pun Thai coffee shops to 900, up from 756. The number of mini-marts is set to increase to 695, up from 597 at present.
According to Mr Pitak, the marketing margin in the oil business is expected to stand at 1.7-1.8 baht a litre this year.
In the third quarter, PTG's revenue grew by 5.3% to 47.5 billion baht, up from 45.1 billion baht. Net profit dropped by 55% to 424 million baht, down from 951 million baht.
From January to September, revenue increased by 14.4% year-on-year to 149.2 billion baht, up from 130.4 billion baht. Net profit dropped by 86% year-on-year to 24 million baht, down from 181 million baht.
The business operation's performance was attributed to the government putting a cap on diesel prices and a lower gross profit margin in the oil business, resulting from the impact of the monsoon season, which usually occurs in the third quarter each year.