SET-listed Prima Marine, a provider of marine transport as well as crude oil and petroleum product storage, expects a better performance next year, driven by long-term charter contracts and a focus on certain industry services.
Offering more vessel services, especially to petroleum drilling companies, is important for the company to reduce risks from overreliance on core businesses, said Viritphol Churaisin, chief financial officer of Prima Marine.
The company provides transport and storage services for oil and chemicals, which account for 90% of total revenue. The remainder comes from providing vessel services to petroleum exploration and production firms.
Prima Marine concluded a five-year contract for vessel services for Abu Dhabi National Oil Co, which is wholly owned by the Abu Dhabi government, said Pachara Rodsomboon, the company's manager for finance and investor relations.
Prima Marine leases two vessels to Abu Dhabi National Oil Co.
The contract gives Prima Marine an opportunity to earn money overseas, in addition to its domestic revenue sources.
In Thailand, PTT Exploration and Production Plc and other subsidiaries of the national oil and gas conglomerate are the main customers of Prima Marine.
Prima Marine's use of vessels has nearly reached full capacity, causing the company to consider expanding its fleet.
This is another way to ensure better business performance, said Mr Viritphol.
Last week the company completed a deal to buy a used floating storage unit, with 306 deadweight tonnes, from Japan. It will serve as a liquid storage vessel.
Purchasing used vessels is a good option for the company because of the limited number of new vessels in the global market, which are sold at high prices.
Prima Marine plans to spend 2 billion baht next year improving its vessels and buying new ones.
In 2024, it allocated 5 billion baht for its business operations.