Energy conglomerate Bangchak Corporation Plc will spend 120 billion baht on growing its businesses, including a plan to buy more assets in the upstream petroleum business in order to support its efforts to increase Ebitda (earnings before interest, taxes, depreciation and amortisation) to 100 billion baht by 2030.
The company's Ebitda stood at 26 billion baht for the period January to June and it is expected to reach 42 billion baht at the end of 2024.
"Bangchak Group has demonstrated its strength and adaptability amid challenging market conditions during the first half of 2024," said Chaiwat Kovavisarach, group chief executive and president of Bangchak Corporation.
During the first six months of this year, the company earned 293 billion baht, which is projected to reach 600 billion baht at the end of this year.
Bangchak will allocate 120 billion baht for its key businesses from 2025 to 2030, with 35%, or 42 billion baht, representing the largest portion of the funds, going to its petroleum exploration and production business. Some 30% will be invested in oil refinery and marketing, 25% in clean power development and 10% in bio-based business.
The company's upstream petroleum business is currently operated by subsidiary BCPR, which has already invested in Okea ASA, a Norway-based oil and gas drilling company.
BCPR plans to acquire new oil and gas assets, especially in the Asia-Pacific region, to earn more revenue, said Mr Chaiwat.
"We spend most of our budget in this segment, but the amount is small compared with usually huge investments in the oil and gas exploration and production industry," he said.
"We want to be a new key player in this segment, which is very interesting."
Bangchak aims to produce up to 100 kilobarrels per day of oil by 2030, up from an estimated 36-40 kilobarrels per day at the end of 2024.
The company plans to increase production capacity at its oil refineries in Bangkok's Phra Khanong district and Chon Buri's Sri Racha district to 280 kilobarrels per day within 2025, up from 266 kilobarrels per day this year.
It also plans to produce sustainable aviation fuel from used cooking oil near its oil refinery in Phra Khanong.
