SET-listed Bangkok Aviation Fuel Services (BAFS) has increased its revenue projection for 2019 to grow by 10% thanks to an expansion in jet fuel demand and a new oil pipeline.
The previous target was 6% growth.
Managing director Prakobkiat Ninnad said the tourism sector is an economic engine for Thailand, so jet fuel demand will continue from air traffic for both inbound and outbound flights.
This year tourist arrivals are projected to grow by 8%, in part because of government policies to stimulate the sector, he said.
"Typically tourist arrival growth is in the single digits annually as Thailand's international airports have limited capacity to serve flights," said Mr Prakobkiat.
"Airports of Thailand has upgraded air traffic management, leading jet fuel demand to grow by double digits."
BAFS is Thailand's largest jet fuel service provider, operating at two international airports: Don Mueang and Suvarnabhumi.
He said BAFS aims for sales volume of 6.2 billion litres in 2019, compared with 6 billion litres in 2018.
In addition, BAFS is developing the second phase of the oil pipeline expansion from its oil depot in Ayutthaya province.
The oil pipeline is operated by BAFS's subsidiary, Fuel Pipeline Transportation. The first phase connecting Ayutthaya to Phichit opened on March 27.
The second phase is expanding from Phichit to Lampang, scheduled to operate later this year. The total investment is 9.7 billion baht with a pipeline length of 570 kilometres between Ayutthaya and Lampang.
"BAFS plans to extend this oil pipeline to Myanmar in the near future and is considering two border provinces -- Tak or Chiang Rai -- for the extension," said Mr Prakobkiat.
He said this project is aimed at reducing road transport of oil in provinces along the pipeline, expecting to account for 20% of oil transport from refineries in the central region the first year of operation. BAFS hopes to raise that ratio to 70% by 2024.
"Revenue from the new oil pipeline is projected at 200 million baht in the first year," said Mr Prakobkiat.
BAFS is also developing the second phase of a hydrant pipeline network system at Suvarnabhumi, scheduled to begin early next year. The project is 90% complete and will be operated by subsidiary Thai Aviation Refueling.