PTG EYES PROMISING VENTURES
Firm to bump up non-oil contribution to 60%
PTG Energy Plc is steering away from its oil business activities towards more promising businesses.
PTG Energy Plc (PTG), Thailand’s second largest fuel trader by sales volume, is steering away from its oil business activities towards more promising businesses, including selling food and drinks mixed with cannabis ingredients, under 30 billion baht in capital spending over the next five years.
Besides the use of cannabis and hemp in the F&B segment, the company will also focus more on liquefied petroleum gas (LPG) sales, oleochemical manufacturing, electric vehicle charging facility development and power generation projects.
The company has set a long-term goal to have non-oil business revenue increase to 60% from just 4% last year over a fiveyear period while oil wholesale and retail will see their share decrease to 40% from 60% in 2020, according to PTG president Pitak Ratchakitprakarn.
This year, PTG plans to allocate 4-4.5 billion baht in capital spending for oil and non-oil businesses, with most of the money tallying 3 billion baht going to oil and LPG businesses.
It plans to spend 500 million baht for new businesses which are mostly under preparation and feasibility study.
Mr Pitak said the company is testing its new food and drink menus, featuring cannabis and hemp ingredients. They will be offered at its Punthai Coffee Shop branch at PTG headquarters in Bangkok.
Other products, made from the plants, will be launched within the third quarter of this year.
In the long term, Mr Pitak said the company will make use of cannabis and hemp for medical purposes.
It also plans to increase the number of Punthai Coffee, Coffee World, Max Mart convenient stores and Autobacs car service centres to 870 from 756 last year.
Mr Pitak said PTG will this year beef up its LPG sales as it has more attractive margins at 4-5 baht per litre, compared with oil retail with only 1.7-1.8 baht per litre.
The company will increase the number of LPG factories from one to four units. The factories fill cylinders with LPG and supply the gas to LPG cooking gas shops.
Its production capacity of gas cylinders will also increase to 300,000 from 30,000 units last year.
Mr Pitak expects LPG sales volume will increase to 184,000 from 97,000 tonnes last year and within five years, making it the third largest LPG trader in Thailand.
‘‘ In the long term the company will make use of cannabis and hemp for medical purposes. PITAK RATCHAKITPRAKARN President, PTG