BCP upbeat on 2018 view

SET-listed energy firm Bangchak Corporation Plc (BCP) is confident its fuel retail business will perform well in the remaining months of 2018 after an unprecedented performance in the first half.

Bangchak’s market share in the country’s oil retail market has risen to 16% from less than 14% a year ago, making it the second-largest player after national oil and gas conglomerate PTT Plc, which has a 34% share.

“This was a result of potential locations for Bangchak’s new petrol stations and maintaining a standard of service for both oil and non-oil business units,” said President Chaiwat Kovavisarach.

Bangchak’s petrol distribution from January to May rose by 7% year-on-year as the overall market increased just 3%.

Bangchak petrol stations total 1,140 units nationwide. Of the total, 70 stations are newly developed properties located in prime traffic areas.

Bangchak’s market share has surpassed that of two other rivals in the market, Shell and Esso, which ranked second and third, respectively, more than a decade ago.

Mr Chaiwat said Bangchak’s non-oil business has also expanded the number of Intanin Cafes to 492 locations and Spar convenience stores to 35 locations.

Bangchak reported that total revenue from January to June rose by 3% to 89.78 billion baht while earnings before interest, tax, depreciation and amortisation (ebitda) dropped by 4% to 6.36 billion baht.

Net profit for the period stood at 2.15 billion baht.

In the second quarter alone, total revenue rose by 6% to 45.56 billion baht as ebitda climbed 3% to 3.37 billion baht.

Net profit for the quarter rose by 1% to 1 billion baht.

Mr Chaiwat said ebitda from oil refining surged by 111% year-on-year to 1.93 billion baht in the second quarter, a 51% increase from the first quarter.

Bangchak said oil refining could have a utilisation rate of just 56% or 66,800 barrels per day, down from full capacity of 100,000 in the first half, due to a production shutdown for repairs and maintenance for 45 days.

BCP shares closed yesterday on the Stock Exchange of Thailand at 35.50 baht, down 25 satang, in trade worth 93.5 million baht.