PTG halves investment budget to B2.5bn for 2020

SET-listed PTG Energy Plc (PTG), the owner of the PT petrol station brand, has halved the amount of capital spending (investment budget) this year to 2.5 billion baht from a previous blueprint set at 5 billion baht at the end of last year.

PTG president Pitak Ratchakitprakarn said the biggest cuts come in plans to expand fuel facility pumps and inventories, reducing the budget from 3.9 billion baht to 2 billion baht.

The company has cut investment in its non-oil segments from 600 million baht to 300 million baht.

Diversified business investment has been cut from 500 million baht to 200 million baht.

2020’s capital expenditure budget will be less than 2018’s, which was 3.35 billion baht.

Mr Pitak said PTG will continue plans to increase the number of petrol stations to 2,500 nationwide by the end of 2022, up from 2,057 at present.

PTG has been investing in station expansion for four years in a bid to build on its position as the second-largest fuel retailer and catch up with the national leader, state-owned oil and gas firm PTT Plc.

In the first quarter of this year, PTG sold 1.22 billion litres of fuel for a 16.6% market share, up 9.7% from the same period of last year in which 1.109 billion litres was sold for a 15.3% market share.

PTG remained behind PTT, which controls 38.8% of the market.

In 2018, PTG ranked third with a market share of 14%, behind PTT at 39.6% and Bangchak Corporation Plc at 15.2%.

Mr Pitak said that this year PTG expects trading volume to grow in a range of 15-20% from 4.62 billion litres, due to new petrol stations opening after the easing of lockdown measures.

He said fierce competition among fuel traders has encouraged PTG to diversify into non-oil segments such as food/beverage and car care services.

These segments offer higher margins than fuel trade.