The Cabinet on Tuesday approved a deeper cut in excise tax on diesel from THB3 to THB5 per litre for two more months, the government spokesman said.
The Cabinet deliberated on the diesel excise cut proposal at its weekly Cabinet meeting, as the current THB3 cut is due to expire on May 20.
Government Spokesman Thanakorn Wangboonkongchana said the Finance Ministry had proposed two options to the Cabinet.
The first option urged the Cabinet to extend the THB3 per litre cut for three more months.
The second option urged the Cabinet to increase the cut to THB5 per litre, but for just two more months.
The Finance Ministry has projected that the subsidy would cost the government not more than THB20 billion in projected revenue. If the government loses more than THB20 billion in excise revenue, it could affect its revenue target, the ministry explained to the Cabinet.
The government is using excise cut to try to stabilise the retail price of diesel, so that people would not be affected by the rising cost of transportation, which could inflate manufacturing costs.
An academic, Praipol Kumsup, welcomed the extension of the excise cut, saying it would mitigate the impact of rising energy prices on the people.
The National Economic and Social Development Council (NESDC) on Tuesday lowered its forecast for Thailand’s economic expansion in 2022 to 2.5 to 3.5 per cent from the previous estimate of 3.5 to 4.5 per cent it had made in November 2021.
NESDC secretary-general Danucha Pichayanan said that in the first quarter of 2022, Thailand saw a 2.2 per cent expansion of gross domestic product (GDP), with almost all sectors reporting increased turnover.
The key economic indicators in the first three months of the year are:
Private consumption expanded 3.9 per cent
Overall investment expanded 0.8 per cent, with private investment increasing 2.9 per cent, but government investment contracted 4.7 per cent
Government consumption expanded 4.6 per cent
Exports expanded 10.2 per cent, with export volume increasing 30.7 per cent year on year
Agricultural sector expanded 4.1 per cent
Industrial sector expanded 1.9 per cent
Construction sector contracted 5.5 per cent
Danucha said that factors that prompted the NESDC to lower GDP estimates for 2022 were the slowdown in expansion of global trade and the rising price of crude oil.
“The conflict between Russia and Ukraine will continue to affect global and Thailand’s economic expansion, especially from the inevitable supply chain impact on energy, fertilisers and wheat that are key factors for the manufacturing sector,” he added.
In November last year, the NESDC had forecast GDP growth of up to 4.5 per cent, riding on increasing domestic demand and manufacturing capacity following the improving Covid-19 situation and increasing vaccination rate, gradual recovery of international tourism following the government’s relaxation of Covid measures, expansion of exports, and disbursement of government budget to various projects.
The baht opened at 34.70 to the US dollar on Tuesday following the four-day break, strengthening from Thursday’s close of 34.78.
The currency is expected to move in a range between 34.40 and 34.90 on Tuesday, said Krungthai Bank market strategist Poon Panichpibool.
Poon said the baht could fluctuate, weaken and test the key resistance level of 34.90 if the market remains in a risk-off state.
However, the baht might strengthen if Thailand’s first-quarter GDP is better than forecast, as investors expect the Bank of Thailand to signal monetary tightening in June.
Meanwhile, Poon said the US dollar will be supported by the demand for safe assets if the market remains in a risk-off state. The market might wait for the next US Federal Reserve statement. If the Fed does not signal a heavy interest rate increase, the market may gradually open to risks, he added.
Poon said that volatility was still high in the currency market due to the Ukraine-Russia conflict, China’s Covid-19 situation, and concern about the Fed’s monetary direction.
Poon advised businesses to use hedging tools such as options to manage risks in the highly volatile currency market.
Wind Energy Holding (WEH) is preparing to pay 2.7 billion baht in dividends to its shareholders after the Bangkok South Civil Court dismissed an injunction requested by KPN Group co-founder Kasem Narongdej.
Kasem requested the injunction in August 2020 to prevent WEH from paying dividends on 64 million of the total 108 million WEH shares, claiming that the shares belonged to him.
On May 11, the Bangkok South Civil Court dismissed Kasem’s request, ruling that he did not own the shares.
As a result, WEH will pay 2.7 billion baht in dividends to shareholders, including Golden Music and WEH chairman Pradej Kitti-Itsaranon.
“The company is allocating cash and expects to pay the dividends this week,” a source from WEH said.
WEH has made six dividend payments in the past two years, worth 41.9 baht per share.
Operations of the firm were halted in 2014 when its co-founder Nopporn Suppipat fled to France after being threatened with criminal prosecution for allegedly intimidating a former business partner to reduce his debts.
Former WEH chairman Nop Narongdej, who is also Kasem’s son, completed eight wind power projects with electricity production capacity of 717 megawatts in 2019.
However, he was voted out of his position by the current board of executives.
WEH is the largest wind power generation company in Southeast Asia, generating more than 10 billion baht revenue per year.
The Saudi Arabian Public Investment Fund (PIF) has pledged to use Thailand as a hub for investment in Southeast Asia, the PIF chief said.
The fund’s chief, Yasir bin Othman al-Rumayyan, met Prime Minister Prayut Chan-o-cha at the Royal Thai Air Force Airport in Don Mueang on Sunday morning.
Government spokesman Thanakorn Wangboonkongchana quoted Prayut as telling the PIF chief that relaxed travel restrictions in Thailand will help boost cooperation between the two kingdoms. He also told the fund chief that Thailand was ready to further develop bilateral ties, which are already improving.
Thanakorn quoted the PIF chief as saying that he was meeting Prayut under the instructions of Crown Prince Mohammad bin Salman bin Abdulaziz Al Saud, who is also deputy PM and defence minister of Saudi Arabia.
Yasir said he had been instructed to discuss cooperation between the two countries, especially on trade and investment in energy businesses such as petroleum and gas surveys.
The two sides also discussed e-sports and soft power cooperation, the spokesman said.
The Saudi fund chief also told Prayut that Saudi Arabia hopes to hold bilateral talks with Thailand to build opportunities for trade and investment. He added that Saudi Arabia will also use Thailand as an investment hub for the region.
Thai-Saudi relations had been stalled since 1989 over a scandal dubbed the Blue Diamond Affair, which involved stolen jewels and a string of murders.
The first Tianjin Air Cargo flight carrying Thai durians landed at Nanning Airport in Guangxi, China on Friday, opening a new shipment route for Thailand’s No 1 fruit export.
“This is good news for durian farmers, said Agriculture Ministry adviser Alongkorn Ponlaboot.
“The new cargo flight operation will help stimulate air freight between Guangxi and Thailand, especially of durians, which are popular in China,” he said.
Tianjin Air Cargo operates in China’s Beijing, Tianjin and Hebei regions but has expanded to cover the route between Nanning and Bangkok. China opened Nanning Airport as a gateway for Thai fruit exports on April 1 after trade negotiations between Bangkok and Beijing.
Thailand has also increased sea shipments of fruit to 55 per cent in a bid to reduce congestion at land checkpoints during the durian harvest, Alongkorn said.
The remaining 40 per cent of Thai fruit would be exported by land and 5 per cent by air, he added.
“Last year, Thailand exported 52 per cent of fruit by sea, 48 per cent by land and less than 1 per cent by air,” he noted.
The new gateway at Nanning Airport would boost exports by air, he added.
Friday saw a ceremony welcoming the first shipment of durians at Nanning Airport, aiming to promote opportunities for Chinese importers.
The airport also has quality-checking facilities for live and frozen aquatic food, which will further boost trade between Asean and China.
Bangkok, May 13 – SHR reveals strong business recovery with the total revenue in the first quarter of 2022 (Q1/2022) at Bt. 1.69 billion. The growth momentum is expected to continue to improve quarter-on-quarter towards 2022 on the back of the relaxation of travel policy across the world, brought up the estimated 2022 revenue to hit Bt. 8.50 billion or doubling the YoY growth.
SHotels and Resorts PCL (SHR), the flagship hospitality arm of Singha Estate PCL, announced its financial results, showing revenue from sales and services during Q1/2022 at Bt. 1,690 million, tripled the revenue over the same period last year. Adjusted EBITDA in the said quarter stood at Bt. 261 million which was the third consecutive quarter of positive adjusted EBITDA, reflecting the performance recovery of the Company.
In Q1/2022, the revenue from the UK and Maldives hotels portfolio made up to 78% of total revenue. The lift in Covid-19 restrictions, the borders reopening to international travelers together with the rise in travel demand in Thailand, Fiji, and Mauritius brought up the revenue from Thailand and Outrigger hotels in Q1/2022. This reflects a positive signal for future revenue growth when tourism sector recovers to surpass pre-pandemic level and the international flights resumes to its normal schedule.
The reopening borders policy and the government’s economic stimulus measures in several countries have allowed the travel demand to recover, starting from the second quarter this year onwards. The Company foresee the positive trend which reflected by the operation performance in April 2022, showing an increase in average occupancy of the overall portfolio of 60%. The growth performance is projected to keep its momentum towards 2022 in accordance with the entering into high travel season of each county. Given the aforesaid positive factors, the well-diversified hospitality portfolios, upgraded services and offerings to reach high tourist demands, and enhanced direct booking channels are the elements driving the Company performance to achieve its target of Bt. 8,500 million, pushing SHR to become the No. 2 highest revenue Thai hotel operator.
Mr. Dirk De Cuyper, Chief Executive Officer of S Hotels and Resorts PCL, revealed that “We foresee the increasing demands in the hospitality business, including our properties in the five top leisure destinations, particularly in the UK and Maldives. Moreover, SHR’s strategy in driving the business using digital marketing to create customized platforms for the wider implementation of direct booking has given the company more resilience and adaptability. The property renovation and the creation of value-added features in all identified potential properties to cater to guests’ various preferences and lifestyle needs is another key factor that will drive 2022 revenue.”
Performance of CROSSROADS Phase 1 Hotels in Maldives for Q1/2022 continued to recover, accomplished the occupancy rate of 74%, well above the industry average. This was mainly from its outstanding design and composition of the project which are different from other typical resorts in Maldives. CROSSROADS project is the first and only fully integrated leisure lifestyle destination in Maldives that serves variety types of guests. Thanks to the fast recovery in tourism, its unique selling points, and the proactive marketing strategy to attract customers from several regions across the globe, CROSSROADS Phase 1 Hotels are predicted to maintain favorable occupancy rate throughout the year 2022 and able to enhance ADR by the Company’s strategies on product upgrades and high spending customer concentration, for example tourists from Europe, America, and Middle East. Regardless, SHR is confident that once the tourists from Asian countries such as China, Korea and Japan, which used to be one of the key source markets in Maldives, have their borders fully reopen, the performance of CROSSROADS Phase 1 Hotels will grow even stronger and become a dream destination of travelers from all over the world.
The resumption of travel demand in UK and a solid performance are expected to continue starting from April to year end, in accordance with the high travel season. SHR projects the performance to return to the pre-pandemic level of 2019 as the hotels in UK portfolio are regional hotels, located in key leisure and economic destinations which gain more popularity from pent-up domestic travel demand. In addition, SHR intended to enhance the efficiency and return of UK hotels portfolio with the plan to further invest in the potential hotels to increase ADR and improve the profitability from Q3/2022 onwards.
Moreover, with the optimistic view on the recovery of MICE (Meetings, Incentive Travel, Conventions, Exhibitions) business in the UK, Maldives, and Thailand, especially SAii Laguna Phuket, this is another upside to boost up the 2022 performance.
“Amidst the most challenging environment. SHR will continue the long-term growth to continuously improve efficiency and returns of our hotel portfolio. A total budget of Bt. 2,800 million has been set aside for a three-year-plan to enhance its asset rotation strategy for existing properties and the construction of SO/Maldives, which is targeted to launch in 2023. The other earmarked budget is set for the merger and acquisition plan for new properties. We also aim to focus on being a hotel operator, either through a flagship homegrown brand or partnership with leading international brands for business expansion to gear up for accelerated growth and enhance competitiveness.” added Mr. Dirk De Cuyper.
(PR News) SHR reveals strong business recovery with the total revenue in the first quarter of 2022 (Q1/2022) at Bt. 1.69 billion. The growth momentum is expected to continue to improve quarter-on-quarter towards 2022 on the back of the relaxation of travel policy across the world, brought up the estimated 2022 revenue to hit Bt. 8.50 billion or doubling the YoY growth.
SHotels and Resorts PCL (SHR), the flagship hospitality arm of Singha Estate PCL, announced its financial results, showing revenue from sales and services during Q1/2022 at Bt. 1,690 million, tripled the revenue over the same period last year. Adjusted EBITDA in the said quarter stood at Bt. 261 million which was the third consecutive quarter of positive adjusted EBITDA, reflecting the performance recovery of the Company.
In Q1/2022, the revenue from the UK and Maldives hotels portfolio made up to 78% of total revenue. The lift in Covid-19 restrictions, the borders reopening to international travelers together with the rise in travel demand in Thailand, Fiji, and Mauritius brought up the revenue from Thailand and Outrigger hotels in Q1/2022. This reflects a positive signal for future revenue growth when tourism sector recovers to surpass pre-pandemic level and the international flights resumes to its normal schedule.
The reopening borders policy and the government’s economic stimulus measures in several countries have allowed the travel demand to recover, starting from the second quarter this year onwards. The Company foresee the positive trend which reflected by the operation performance in April 2022, showing an increase in average occupancy of the overall portfolio of 60%. The growth performance is projected to keep its momentum towards 2022 in accordance with the entering into high travel season of each county. Given the aforesaid positive factors, the well-diversified hospitality portfolios, upgraded services and offerings to reach high tourist demands, and enhanced direct booking channels are the elements driving the Company performance to achieve its target of Bt. 8,500 million, pushing SHR to become the No. 2 highest revenue Thai hotel operator.
Mr. Dirk De Cuyper, Chief Executive Officer of S Hotels and Resorts PCL, revealed that “We foresee the increasing demands in the hospitality business, including our properties in the five top leisure destinations, particularly in the UK and Maldives. Moreover, SHR’s strategy in driving the business using digital marketing to create customized platforms for the wider implementation of direct booking has given the company more resilience and adaptability. The property renovation and the creation of value-added features in all identified potential properties to cater to guests’ various preferences and lifestyle needs is another key factor that will drive 2022 revenue.”
Performance of CROSSROADS Phase 1 Hotels in Maldives for Q1/2022 continued to recover, accomplished the occupancy rate of 74%, well above the industry average. This was mainly from its outstanding design and composition of the project which are different from other typical resorts in Maldives. CROSSROADS project is the first and only fully integrated leisure lifestyle destination in Maldives that serves variety types of guests. Thanks to the fast recovery in tourism, its unique selling points, and the proactive marketing strategy to attract customers from several regions across the globe, CROSSROADS Phase 1 Hotels are predicted to maintain favorable occupancy rate throughout the year 2022 and able to enhance ADR by the Company’s strategies on product upgrades and high spending customer concentration, for example tourists from Europe, America, and Middle East. Regardless, SHR is confident that once the tourists from Asian countries such as China, Korea and Japan, which used to be one of the key source markets in Maldives, have their borders fully reopen, the performance of CROSSROADS Phase 1 Hotels will grow even stronger and become a dream destination of travelers from all over the world.
The resumption of travel demand in UK and a solid performance are expected to continue starting from April to year end, in accordance with the high travel season. SHR projects the performance to return to the pre-pandemic level of 2019 as the hotels in UK portfolio are regional hotels, located in key leisure and economic destinations which gain more popularity from pent-up domestic travel demand. In addition, SHR intended to enhance the efficiency and return of UK hotels portfolio with the plan to further invest in the potential hotels to increase ADR and improve the profitability from Q3/2022 onwards.
Moreover, with the optimistic view on the recovery of MICE (Meetings, Incentive Travel, Conventions, Exhibitions) business in the UK, Maldives, and Thailand, especially SAii Laguna Phuket, this is another upside to boost up the 2022 performance.
“Amidst the most challenging environment. SHR will continue the long-term growth to continuously improve efficiency and returns of our hotel portfolio. A total budget of Bt. 2,800 million has been set aside for a three-year-plan to enhance its asset rotation strategy for existing properties and the construction of SO/Maldives, which is targeted to launch in 2023. The other earmarked budget is set for the merger and acquisition plan for new properties. We also aim to focus on being a hotel operator, either through a flagship homegrown brand or partnership with leading international brands for business expansion to gear up for accelerated growth and enhance competitiveness.” added Mr. Dirk De Cuyper.
(PR News) Klongtom Heritage is making its selling point more unique and meaningful by showing the world how valuable its underground treasure can really be. Klongtom Salt Hot Spring, a one-of-a-kind natural wonder found in Thailand’s Krabi province, contains large amounts of dissolved minerals and is believed to have plenty of healing benefits in fighting against ailments.
To build on such significant advantages, the company has determined to develop a natural health rejuvenation program backed by the knowledge of modern medicine and services of global standards, especially for health lovers and those with health-related problems. The company is also welcoming domestic and foreign investors to be part of this large-scale project worth 13.7 billion baht, which has been expected to be a new world health destination.
Mr. Wichai Poolworaluk, Chairman of Klongtom Heritage Co., Ltd., unveiled Krabi province is often known for its beautiful seas and beaches. The province becomes more famous for having Klongtom Salt Hot Spring, considered the world’s one-and-only natural underground asset. The salt hot spring, found in Krabi’s Klongtom district, is unique for having plenty of naturally dissolved minerals and comfortable water temperatures. The seawater seeps into the basement of the hot spring through the rock layers full of natural minerals. The water of the hot spring is special for having the least smell of sulfur, while unveiling only the taste of light salt unlike the strong salty taste of seawater. The major mineral contained in the hot spring is sodium chloride, while silica, potassium, and magnesium carbonate also exist in a high amount. The level of total dissolved solids (TDS) is maintained at 11,690, which is higher than the average levels of only 1,000-2,000 possessed by other hot springs.
The minerals found in Klongtom Salt Hot Spring have distinctive properties, efficient in stimulating blood circulation, lowering blood pressure, reducing inflammation of the joints, treating diabetes and skin diseases, and nourishing the nervous and digestive systems. At present, the alternative medicine industry has started to rely more on the salt hot springs as the rich sources of natural minerals to enhance the efficiency of modern medicine, backed by the knowledge and desire of physiotherapists and regenerative medicine specialists in introducing new treatment programs for patients with various types of ailments. The Klongtom Heritage project unveils the first-ever health treatment program using a salt hot spring for medical rehabilitation and healthcare, together with a comprehensive range of health and wellness services certified with globally accepted standards.
“For people in Klongtom district, using the salt hot spring was originally a traditional way of life. They soaked themselves in the water of the therapeutic hot spring whenever they became ill. Currently, a massive number of more than 100,000 people have visited the salt hot spring each year, following people’s word-of-mouth belief that the amazing underground wonder can prevent and cure diseases as well as the government’s approval for the salt hot spring to be open for public services, where both local and foreign visitors can often indulge themselves in a more private and comfortable atmosphere with standardized and well-managed services. This has led to the development of the Klongtom Heritage project, located on an approximate area of 300 rai, where a massive number of benefits derived from the salt hot spring will be used and applied in line with modern medicine, together with services of world-class standards, to introduce appropriate health rehabilitation and treatment programs for patients and those who yearn for having excellent health and balanced living as well as greater privacy and convenience in obtaining high-quality health and wellness services. Other facilities in the project are also designed with attention to detail aiming for environmental sustainability, particularly in land use, to be in harmony with the community and its people. The Klongtom Heritage project has been expected to make Krabi’s Klongtom district a globally renowned health city for both Thais and foreigners, paving the way for the province to become one of the world’s must-visit health and wellness destinations.”
The project has been initiated from the ‘Health Community’ and ‘Sustainability’ concepts, highlighted by the intention to sustainably foster good health and well-being of the society for people. The company is currently working on project planning and zoning, varying in the patient zone, the dependency and non-dependency zone, and the retirement and pre-retirement zone. The project will be divided into ten different zones including: 1) Community Market 2) Hotel 3) Town Center 4) Sports Enhancement 5) Spa Medical 6) Agriculture 7) Branded Residences 8) Resort Residences 9) Amataya Residence 10) Amataya Rehabilitation Hospital
All ten zones will be divided into six major phases of operations. The first phase, to be implemented under the name of Amataya Wellness, consists of three minor parts, including Amataya Rehabilitation Hospital, Amataya Holistic Treatment, and Amataya Residence, expected to be open for services in June 2022.
The second phase includes Community Market, Hotel, and Town Center, which will be open in 2024. The third phase or Spa Medical has been expected to be completed in 2025 while the fourth phase or Branded Residences will officially make its public debut in 2026. The fifth phase or Sports Enhancement and the sixth phase or Resort Residences will officially be completed in 2027 and 2028, respectively. In addition, Thailand has been named the host of Specialised Expo 2028 Phuket Thailand, which will be held in Phuket province in 2028. This grand health and wellness event is expected to be joined by a large number of participants from all over the world.
As the project consists of ten zones, with six phases to be completed, Klongtom Heritage is seeking potential investors and operators of both Thai and foreign nationalities who specialize in health and wellness and have similar visions to help generate greater development for the project, paving the way for this wonderland to become one of the world’s best health and wellness hubs with several interesting and fun-filled activities for everyone to explore.
“Amataya Wellness in the first phase, expected to be open by mid-2022, is considered a significant pioneering part of the Klongtom Heritage project that allows everyone to fully experience the magic of the Salt hot spring to be followed by other parts in different phases. The project will announce the opening of a new physical therapy hospital for rehabilitation and treatment of stroke patients and other health lovers, with a comprehensive range of high-quality services related to the Salt hot spring. The project also unveils nature-inspired residences developed based on the natural living concept, with a private Salt hot spring pool in every unit. We are lucky to have strategic partners, such as TRPH Hospital, Wat Phra Chetuphon (Wat Pho) Traditional Medicine and Massage School, Ishii Stroke Rehabilitation Center, and Bangkok Healthcare Service (BHS). After the project’s official opening, we believe a revolutionary image of Krabi province will help accelerate the development of the Andaman Wellness Economic Corridor (AWC) project in a more distinctive way.”
“Thailand is currently recognized as one of the world’s top five health tourism destinations and the market value of wellness tourism in the country tends to increase continuously. As the pandemic situations of COVID-19 are lessened, the government is setting its sight to focus more on promoting the expensive market, where the medical tourism and health and wellness tourism businesses have been expected to become more popular among tourists. The expenses of the two tourism groups have been estimated to cost around 80,000-100,000 baht per trip. Therefore, promoting and expanding the two tourism groups will generate more stable incomes as Thailand is poised to become one of the world’s most renowned international health and wellness hubs,” concluded Mr. Wichai.
Benefitting from Portfolio Diversification while Focusing on Energy Security and Leading the Way to Low-Carbon Society
(PR News) Bangchak Group reported its first-quarter 2022 performance, with revenues from sales and services of THB 69,055 million, EBITDA of THB 13,714 million, and net profit attributable to the parent company of THB 4,356 million, making this the first quarter to see EBITDA over THB 10,000 million, representing earnings per share of THB 3.12. The quarter recorded a Net Inventory Gain of THB 2,900 million from the management of oil reserves to stabilize energy security following the Russia-Ukraine conflict, the recording of revenue from Natural Resource Business, OKEA, and record-breaking crude run at 122.1 KBD, while addressing its energy transition through the operation of fuel pipeline and logistics businesses since 1 January 2022.
Chaiwat Kovavisarach, President and Group Chief Executive Officer, Bangchak Group revealed that the performance in the first quarter of 2022, Bangchak and its subsidiaries generated THB 69,055 million, increasing by 3% from the previous quarter, and by 67% from the same period in 2021, equivalent to an EBITDA of THB 13,714 million, increasing by 48% from the previous quarter, and by 189% from the same period in 2021, and recording a net profit attributable to the parent company of THB 4,356 million, increasing by 148% from the previous quarter, and by 91% from the same period in 202, representing earnings per share of THB 3.12.
The increased performance was, in part, the result of the change to the consolidated method for OKEA subsidiary since the second-half of 2021, and the Refinery and Trading Business Group benefitting from significant increase in global crude oil and finished products prices from tight energy supply conditions following RussianUkraine tensions, as well as demand growth following the progress of COVID-19 vaccinations and the gradual easing of social restrictions around the world. As a result, average Dubai crude oil in the first quarter increased to USD 96.21 per barrel, an increase of USD 17.95 per barrel from the previous quarter, and USD 36.00 from the same period in 2021. The Group had gradually increased its reserve inventory, resulting in a Net Inventory Gain (Gross inventory margin adjusted by crude and product price hedging contracts) of about THB 2,900 million in the first quarter.
These conditions improved operating GRM leading Bangchak Refinery to increase and maintain its highest record crude run. Simultaneously, the Natural Resources Business and New Business Development Group also benefitted from significantly higher energy prices, especially natural gas which increased 367% from 2021.
First quarter 2022 performance results for each business group, are as follow:
Refinery and Trading Business Group saw 63% performance increasfrom the previous quarter, and 108% from the same period in 2021, with an Inventory Gain of THB 3,566 million (Net Inventory Gain of THB 2,350 million), operating GRM increased to USD 6.84 per barrel, increasing by USD 3.6 per barrel from the same period in 2021, due to widening crack spreads for all products in the global market. This is especially significant for the Diesel and Dubai crack spread (GO-DB), which is Bangchak refinery’s largest product yield, prompting the refinery to increase its production to 122,100 KBD or 102% utilization rate, which also supported the expansion of Unconverted Oil (UCO) exports.
The Oil Trading Business by BCPT, improved as profit per unit for low sulfur fuel oil products group increased reflecting fuel oil demand recovery from the marine transport segment following global economic recovery. The fuel pipeline and logistics business by Bangkok Fuel Pipeline and Logistics Company Limited ( BFPL) commenced operating the fuel pipeline systems, Bangkok – Bang Pa-In, to increase revenue channels, reduce costs and losses from conventional transportation, and reduce carbon emissions into the atmosphere.
Marketing Business Group saw 338% performance increase from the previous quarter, mainly from oil price increasing at higher rates, resulting in greater Inventory Gain, and an increase in sales volume by 2% from the previous quarter, 14% from 2021, following the immunity boost from widespread COVID-19 vaccinations, and the aviation industry starting to recover as the international travel restrictions are lifted. Furthermore, although the marketing business continues to be affected by the latest net marketing margin, pressured by the global market higher cost of finished products prices, and the Company cooperating with the government to peg domestic diesel retail prices at no more than THB 30 per liter to help reduce cost of live for consumers, its costs management policies along with the promotion of lubricant sales, which have higher marketing margins, was able to increase net marketing margins by 9% from the previous quarter, despite a 22% decrease from the same period in 2021.The Company continues to emphasize the expansion of non-oil business, with Inthanin able to increase coffee sales to a record new high in March 2022.
Power Plant Business Group by BCPG Public Company Limited saw 196% performance improvement from the previous quarter, and 214% from the same period in 2021, mainly from the recognition of gains from the disposal of the whole investment in Star Energy Group Holdings Pte. Ltd. (“SEGHPL”) at THB 2,031 million, as well as higher solar irradiation, and the commercial operation (COD) of solar rooftop projects in Thailand, and the fullquarter recognition of electricity generation from Chiba 1 solar power plant in Japan. Moreover, in March, BCPG commence COD of a solar power plant in Komagane, Japan with a power purchase agreement (PPA) of 25 MW, increasing its Japanese commercial operations to 59.7 MW.
Bio- Based Products Business Group benefitted from the ongoing price increase of B100, despite remaining affected by the reduction B100 blend to peg the price of retail diesel prices in Thailand, resulting in a 35% increase in its quarterly performance, and gross margin increase by 41% from the previous quarter. It also recorded revenue from High Value Products (HVP) such as from health supplements under the “B nature+” brand though online channels, 50 Inthanin coffee outlets, as well as pharmaceutical grade alcohol hand sanitizers. During the quarter, BBGI saw selling and administrative expenses increased by 2% from the previous quarter, from the expenses related to the issuance and initial public offering (IPO) and listing on the Stock Exchange of Thailand (SET) on 17 March 2022.
Natural Resource Business Group and New Business Development recorded a 12% decrease from the previous quarter, but an increase of more than 1,000% from the same period in 2021 from the rising trend of energy prices mainly from OKEA’s performance which recorded an EBITDA increase of 401% from the same period in 2021 despite lower sales volume following no sales from Ivan Assen and scheduled maintenance of Gjøa, but supported by the increase in the average price of oil and especially natural gas, which increased 367% from 2021. Moreover, the Group changing its recording method of investment in OKEA to subsidiary which resulted in recording of performance with the consolidated method since 1 July 2021, is expected that OKEA will maintain production range of 18,500 – 20,000 boepd, including the increased ownership in Ivar Assen field from 0.554% to 2.777% since 31 March 2022.
Chaiwat added that the second quarter of 2022, oil prices will continue to be supported by extremely tight crude supplies from the Russia-Ukraine tensions. Finished product prices are supported by continuous demand recovery as countries around the world lift restriction on travel, which should be a positive factor for the Refinery and Oil Trading Business Group, and the Natural Resources Business and New Business Development Group. Furthermore, operational GRM is expected to remain at a high level which will support the refinery to maintain high crude run levels. The Marketing Business Group is expected to remain pressured by rising global market costs of finished products. The Company is closely monitoring the situation in order to respond appropriately, accelerating investments to maintain a balance between national energy security and clean energy transition, committed to being the leader of the low-carbon society, promoting ESG (economic, environmental, and corporate governance for all stakeholders.
The two sides also discussed e-sports and soft power cooperation, the spokesman said.
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