SETTING THE TABLE
PTT Oil and Retail Business priced its initial public offering at 16-18 baht for subscription later this month.
PTG Energy Plc, Thailand’s second largest fuel trader by sales volume, is planning 4.5 billion baht in capital spending this year to expand petrol and liquefied petroleum (LPG) refilling stations and grow its Coffee World and Pun Thai cafes, says executive vice-president Rangsun Puangprang.
He said most of the budget tallying 3.6 billion baht will go to the development of 150 new petrol and LPG stations, and a facelift for 10 petrol refilling outlets.
The rest of the money will be allocated for non-oil and new businesses related to oil retailers.
New petrol stations are to be located in Bangkok and its vicinity.
PTG expects the total number countrywide will increase to 2,244 this year from 2,094.
The company will also expand its non-oil businesses, including increasing the number of Pun Thai coffee shops by 50 more branches from the current 270 branches.
It plans to rebrand Coffee World by upgrading it to a premium cafe. The company has 30 branches under Coffee World.
Mr Rangsun said PTG expects its oil sales this year will grow 8-10%, raising its market share of the Thai oil industry to 17% from 14.2%, thus maintaining its status as the second largest trader,
following national oil and gas conglomerate PTT.
He said the company expects average global oil prices will range from US$5560 per barrel in 2021.
During the spread of the Covid-19 pandemic last year, the company managed to make its oil sales grow by 5.9% to 4.96 billlion litres from 4.6 billion litres in the previous year.
Sales of LPG for automobiles also grew by 13% to 152 million litres from 134 million litres.
It recorded the growth as oil consumption in Thailand during the first
11 months last year contracted by 1.6% to 21.1 billion from 21.5 billion litres. LPG consumption fell by 28% to 1.23 billion litres from 1.74 billion litres in the previous year.
Mr Rangsun said one reason behind the sales growth was its oil clients were in the diesel-powered car segment which commanded 72% of total oil sales.
Diesel engines are mostly used in logistics and agricultural businesses.
PTG will maintain cash on hand of roughly 5 billion baht to brace for uncertainties given the ongoing outbreak.