OR chief sets out improvement plan
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OR chief sets out improvement plan

Executive's goal is to ramp up market share and stock price

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OR is working on plans to improve its oil retail and wholesale sales following a decline in market share.
OR is working on plans to improve its oil retail and wholesale sales following a decline in market share.

PTT Oil and Retail Business Plc (OR) has vowed to make significant changes to improve its businesses over the next three years, following a decline in its market share in the domestic oil trade and a dip in the company's stock price.

A new strategy for OR's oil trade and a search for partners to increase revenue are among the measures set out by the company's new chief executive ML Peekthong Thongyai.

He said efforts to increase OR's market share, stock price and market capital would be the most challenging aspects of the job.

Over the past few years, the company's market share in the oil wholesale and retail trade fell to 34% from 42%, while its stock price closed at 11.9 baht per share on Jan 30, compared with 18 baht during its initial public offering in 2021. OR's market capital has also dropped substantially.

A pricing strategy and the use of non-oil businesses to attract people to PTT stations is not the sole focus, said ML Peekthong.

OR operates Cafe Amazon coffee shops and provides visitors to its petrol stations convenience stores and a choice of food outlets.

Last year the company announced it was halting its investment in American fast food chain Texas Chicken, closing all of its branches in Thailand. OR said it wants to revisit businesses that have a dim outlook.

"Drawing visitors to filling stations with non-oil businesses and sales promotions can be easily copied by others," he said.

ML Peekthong

ML Peekthong

ML Peekthong said OR will have an advantage over its rivals because of its strong oil logistics, supported by oil refineries and depots. This can enable the company to become a regional oil hub, exporting more oil to neighbouring countries, he said.

"At petrol stations, we will not focus on fuel price competition for motorists," said ML Peekthong.

More than 85% of oil consumption in Thailand depends on oil imports. If retail prices decrease greatly, motorists will consume more, which would not be good for the Thai economy, he said.

OR also plans to improve a car care service branded "Fit Auto" at its petrol stations, which encountered queue management problems.

The new strategy and partnerships as well as improved business operations are expected to help OR generate greater earnings before interest, taxes, depreciation and amortisation, said ML Peekthong.

The company is allocating 60 billion baht to support its businesses from 2025 to 2029, with 19 billion baht set aside for this year.

Of the 2025 budget, 7.6 billion baht is for OR's oil and electric vehicle businesses, while 7.3 billion supports non-oil businesses. The remainder is allocated to overseas expansion and new businesses.

In another development, PTT Exploration and Production Plc posted a 2.3% increase in revenue to US$9.2 billion in 2024, thanks to more petroleum production and sales, though global crude oil prices fell by 3.5% to $79.6 per barrel on average.

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