BAFS predicts higher oil sales volume
SET-listed Bangkok Aviation Fuel Services (BAFS) expects oil sale volume in 2020 to rise 7% to 6.2 billion litres as its new pipeline in the North will begin operations in the middle of next year.
The oil pipeline is operated by BAFS’s subsidiary, Fuel Pipeline Transportation (FPT).
FPT started the first phase of pipeline operations from Ayutthaya to Phichit across 209 kilometres in June. The oil depot has been operating since late March.
The second phase extends the pipeline by 367km and includes oil depots from Phichit to Lampang. It is 91% complete.
The total investment is 9.7 billion baht.
The pipeline runs 576km between Ayutthaya and Lampang and has a capacity of 9 billion litres a year.
The pipeline is expected to reduce carbon emissions by 30,000 tonnes per year, compared with oil transport by truck.
MR Supadis Diskul, chairman of BAFS, said the growth in sales volume next year will be driven by full operation of the two pipeline phases.
Oil sales volume in 2019 is projected at 6.14 billion litres.
Some 82% of oil sales come from BAFS’s aviation refuelling services at five airports: Suvarnabhumi, Don Mueang, Samui, Trat and Sukhothai.
MR Supadis said BAFS is developing the sixth unit of an oil tank at Suvarnabhumi airport.
The company recently announced its business diversification to other energyrelated business.
He said the new foothold will be related to IT and automation under BAFS’s growth strategy, both domestically and abroad.
BAFS partnered to bid for the Royal Thai Navy’s fuel service project for U-tapao airport.
“BAFS has already passed the qualification stage and is waiting for the final announcement in December,” said MR Supadis.
ML Nathasit Diskul, vice-president of BAFS, said U-tapao airport will be its sixth location for aviation refuel services if it wins the bid.
“We are in talks with partners to possibly join the aviation fuel business,” he said.
“BAFS is seeking asset acquisitions in renewable power and energy management systems.”
BAFS expects the new business will make up 40% of the company’s revenue in five years from less than 20% at present.
The company posted revenue in the first nine months of 2.87 billion baht, increasing 2.2% from the same period last year.
Total aviation fuel used tallied 4.56 billion litres, growth of 2.4% for the period, while other fuel types amounted to 3.41 billion litres, declining 1.1%.
BAFS had a net profit of 780 million baht during January to September, decreasing by 10.3% year-on-year.