Bangchak continues expanding with more petroleum fields in Norway added to portfolio
TUESDAY, NOVEMBER 01, 2022
Bangchak Group continues the expansion of its natural resource business through Norway’s OKEA ASA, of which it is a major shareholder. On November 1, OKEA acquired three petroleum fields namely Brage, Ivar Aasen and Nova fields. The total value of the transaction stood at more than 4 billion baht, with revenue recognition starting from November 1 onwards.
Chaiwat Kovavisarach, Group Chief Executive Officer and President,Bangchak Corporation Public Company Limited, as Chairman of OKEA ASA, Norway, an exploration and production company listed on the Oslo Stock Exchange, stated that as of 1 November 2022, OKEA ASA has completed the acquisition of Wintershall Dea‘s 35.2 % interest in the Brage field, 6.4615% interest in the Ivar Aasen field, as well as a 6 % interest in the Nova development field.
The acquisition also includes the operatorship of Brage oil field. The total value of the transaction amounts to NOK 1.1 billion or over 4 billion Baht.
The acquisition of the Brage field and two other assets represents a significant step in OKEA’s growth strategy, like the acquisition of the Draugen field in 2018. It will not only add over 7,000 barrels of oil equivalent per day (BOEPD) of production capacity and bring OKEA’s total production to 25,000 – 27,000 BOEPD in 2023 – 2024 but will also increase OKEA’s reserves by 30 – 40%, and further expand its portfolio and strengthen the company’s position as a leading mid- to-late-life operator on the Norwegian Continental Shelf (NCS).
Moreover, 140 competent and highly experienced offshore and onshore employees from Wintershell Dea will be transferred to OKEA, doubling the number of OKEA employees.
“The acquisition of the operatorship of the Brage field reiterates OKEA’s ambitious growth strategy and reflects Bangchak Group’s focus in balancing the energy trilemma; energy security with energy affordability, and environmental sustainability” Chaiwat concluded.
Ambitious woman CEO aims to take Dusit brand to global heights
SUNDAY, OCTOBER 30, 2022
Opal Varunsuda
On the 19th episode of Business Story, Suphajee Suthumpun, Group Chief Executive Officer at Dusit Thani Public Company Limited, discusses the past, present, and future of Dusit Thani.
Dusit Thani: From past to present
Dusit Thani was founded in 1948 by Thanphuying Chanut Piyaoui, a lady with a vision and strong passion, established Princess Hotel on Charoen Krung Road in 1948. Since then the group has been in the hotel business and hospitality services for more than 70 years.
Today, Dusit Thani is the leading hospitality company listed on the Stock Exchange of Thailand; and along with fellow peers in the hospitality industry, Thailand has now become one of the most visited countries in the world.
Suphajee Suthumpun, Group Chief Executive Officer at Dusit Thani Public Company Limited
Suphajee Suthumpun stated that Dusit Thani started from a single hotel in a corner of Bangkok 74 years ago and since then the group has grown rapidly, now expanding to 333 properties across 17 countries.
Dusit Thani currently manages 48 hotels across 5 brands, including full service hotels, luxury hotels, wellness-focused hotels, and lifestyle hotels for millennial travelers. And with Dusit Thani’s recent acquisition of Asia’s largest villa management company Elite Havens in 2018, the group has reached new heights.
Apart from hotel management, Suphajee Suthumpun asserted that Dusit Thani has been focusing on education since 1993.
The group provides education on hotel management, hospitality, and culinary programs; and has over 3,000 students in their system each year. Suphajee Suthumpun further mentioned that Dusit Thani also began expanding into food business and real estate development a few years ago.
DUSIT THANI –
Dusit Central Park:
With Dusit Thani’s vision “uniquely delivering gracious hospitality to the world”, the group is now expanding with their new project: Dusit Central Park.
Suphajee Suthumpun stated that the location of Dusit Central Park is one of the project’s strengths. Located in Bangkok’s CBD, which is the most convenient spot in Bangkok, the project is accessible by both the underground train and skytrain.
Dusit Central Park: A project which integrates legacy, heritage, and futureSuphajee Suthumpun explained the Dusit Central Park project consists of 4 key elements: hotel, residence, office, and retail. The hotel is expected to be completed in 2024 during the first quarter; the other elements to be followed in the same year.
Residences will be divided into 2 living concepts: one residence aims at the younger generations who desire urban lifestyle with luxury services, the other aims at those with bigger families who desire larger living spaces. All residences will be provided 24/7 service by the Dusit hotel.
Suphajee Suthumpun stated that the key for this project lies in the integration between legacy, heritage, and future. Finding the balance between heritage and future is viewed as a critical point for Dusit Thani; it needs to capture new customers while giving the experiences that they had delivered to their past customers.
In areas of architecture, the group consulted with experts in determining which elements should be kept to represent Dusit Thani’s past legacy, and which elements to be added to keep up with the ages.
The pandemic, technology disruption, and shift in consumer preference:
When asked of the challenges Dusit Thani faced during the past 2-year pandemic, Suphajee Suthumpun replied that this period had given Dusit Thani the opportunity to reflect and look into their business model and address the change in consumer expectation and preference.
With technology disruption, Dusit Thani now focuses on collaboration with strategic partners, integrating innovation to deliver to customers, and contribution in growing together with the country, industry, and community.
Suphajee Suthumpun asserted that collaboration, innovation, and contributions all lead to the main objection: to expand, diversity, and balance Dusit Thani’s portfolio.
Suphajee Suthumpun also discussed the change of consumer behavior towards personalized experience. Dusit Thani now aims to understand personal preferences instead of doing mass campaign market segmentation. For insights to customers preferences, Dusit Thani has been spending budget to address data collection and capabilities for the past two years.
Thai start-ups raise over THB10 billion in just two months
SATURDAY, OCTOBER 29, 2022
Thai start-ups managed to secure more than 10 billion baht in funding in September and October, as investment rebounded with the country’s reopening.
Thansettakij business daily reported on Friday that the past two months have seen major investment deals announced by five Thai start-ups in various industries.
The biggest deal was announced by e-commerce platform LINE MAN Wongnai, which raised US$265 million or 10 billion baht from several partners including Singaporean sovereign wealth fund GIC, Line Corp, BRV Capital Management, PTT Oil and Retail (OR), Bualuang Ventures and Taiwan Mobile. The deal raised the company’s value to over 37 billion baht, making it Thailand’s latest unicorn.
The second deal was announced by Globish Academia Thailand, an online English learning platform, which raised over 90 million baht from leading venture capital firms Premier, NVEST Venture, ECG, 500 TukTuks, StormBreaker Venture and RareJob. Globish is entering a growth stage and aims to become a leading EdTech start-up in the Asean region.
Meanwhile, Green Yellow, a solar generation start-up, recently secured 831 million baht from the Export-Import Bank of Thailand to expand its solar-panels project for residential and business customers wishing to save energy and reduce carbon emissions.
AutoPair, a provider of automotive-part sourcing and auto-shop management software, also secured 70 million baht from Mitsubishi Corp to expand the Japanese automaker’s parts-manufacturing wing.
Lastly, Fintech and blockchain start-up Forward recently completed its seed or first-stage funding with 160 million baht raised. The six-month fundraising project weathered a volatile cryptocurrency market to secure investments from Primestreet Capital, Beacon Venture Capital, KBANK, Bank of Ayudhya and KASIKORN X, among others.
Thailand needs ‘more investment in renewable energy, digitalisation by public, private sectors’
FRIDAY, OCTOBER 28, 2022
Nongluck Ajanapanya
Thailand’s public and private sectors should invest in renewable energy and digital solutions to maintain the country’s competitiveness and growth, according to Delta Electronics.
Green energy and reduction of carbon emissions are now part of the global mega-trend. All transformation processes take time, so the sooner the better, said Delta Thailand’s president, Jackie Chang.
He made the remarks during the annual seminar “Delta Future Industry Summit 2022: Smart Green Energy for a Resilient and Sustainable Thailand”.
The seminar provides a venue for Delta’s partners to network and solve problems while learning about the company’s latest solutions in EV charging, data centre, and industrial automation.
Chang stated that while investment in renewable energy will be high, it will be worthwhile in the long run because the global economy is concerned about the environment. Many regulators will impose regulations requiring polluted or high-emission companies to pay compensation.
One of Thailand’s top priorities right now is to focus on establishing factory plants for electronic vehicles, he said, while praising the government’s policy of encouraging foreign investment, but he believes it should be expedited.
Aside from battery plants, Chang suggested that Thailand consider developing its own chip set and semiconductor in order to sustain Thailand’s EV industry as well as digital economy.
He emphasised the importance of assisting traditional automobile suppliers in Thailand in transforming their businesses to serve the EV industry.
He also pledged to assist the Thai government and entrepreneurs during this period of energy transition.
“As an EV parts manufacturer and EV charging solution provider, Delta has the local engineering and service capabilities to implement comprehensive EV charging infrastructure solutions,” Chang said.
Deputy Prime Minister and Minister of Energy Supattanapong Punmeechaow thanked Delta for supporting the National Energy Plan 2022, which will reduce carbon emissions to meet the country’s 2050 carbon neutrality target.
“Today, we are already seeing Delta contributing to Thailand 4.0, new S-Curve and sustainable goals, by building many essential EV parts and charging infrastructure in Thailand to supply top car brands, as well as paving the way for environmentally friendly buildings and manufacturing practices by promoting rooftop solar, batteries, and energy efficiency technologies,” said Supattanapong.
Chang concluded by saying that Delta is looking forward to collaborating with its partners to put solutions into action that promote e-mobility and digital transformation in support of Thailand 4.0 and thus create a new green economy.
Delta Electronics is a global producer of power and thermal management products and solutions. Currently, the company’s business categories include power electronics, automation, and infrastructure.
Finance Ministry to spend THB10bn on recapitalising Thai Airways
FRIDAY, OCTOBER 28, 2022
The Finance Ministry will sell stocks in other state enterprises to ensure its majority stake in Thai Airways International (THAI) does not fall below 40 per cent when THAI is recapitalised, the State Enterprise Policy Office (SEPO) said on Friday.
The debt-to-equity recapitalisation comes under the THAI’s revised rehabilitation plan, which was approved by the Central Bankruptcy Court last week.
Under the rehab plan, the Finance Ministry must maintain at least 40 per cent of THAI’s shares. It currently owns a 47-per-cent shareholding in the ailing national carrier.
SEPO is now considering which stocks will be sold to fund the recapitalisation, said its director-general Pantip Sripimol. She expects at least 10 billion baht will be needed to increase the government’s shareholding in THAI.
She added that THAI’s financial performance is improving now that it has resumed flights after pandemic restrictions were lifted.
Since filing for bankruptcy protection, the airline has halved its workforce from over 29,000 to 14,000 and reduced its fleet to 58 aircraft. It forecasts better-than-expected performance with cabin loads at 80 per cent or higher this year.
Pantip predicted THAI would be relisted on the Stock Exchange of Thailand in the latter part of 2024.
Kasikorn Bank (KBank) also expects THAI’s performance to improve as operating costs fall and tourism recovers. KBank forecasts the carrier’s earnings will rise to 40 billion baht in the fourth quarter of this year from 21 billion baht in the second quarter.
However, it predicts performance losses until 2024 due to rising fuel costs.
“It depends on how THAI deals with fuel and flight ticket prices to gain profit,” a KBank analyst said.
The airline filed for bankruptcy protection in late 2019 after reporting massive debts of 245 billion baht. The rehab plan was given the green light by Cabinet in May 2020 before being approved by the Central Bankruptcy Court. The rehab plan was then revised following a better-than-expected performance by the airline.
Elon Musk began his regime at Twitter by firing top executives for allegedly misleading him, but provided little information on how he will achieve his outlined ambitions, a Reuters report said.
The CEO of electric automaker Tesla has said he wants to “defeat” spam bots on Twitter, make algorithms that determine how content is presented publicly available and prevent the platform from becoming an echo chamber for hate and division.
Without providing details on how he will achieve these ambitions and who will run the company, Musk has only said he plans to cut jobs, leaving Twitter’s approximately 7,500 employees fretting about their future.
He has said he did not buy Twitter to make more money but “to try to help humanity, whom I love”.
“Musk terminated Twitter chief executive Parag Agrawal, chief financial officer Ned Segal and legal affairs and policy chief Vijaya Gadde,” Reuters said, citing people familiar with the matter.
“He had accused them of misleading him and Twitter investors over the number of fake accounts on the social media platform.”
Twitter, Musk and the executives did not immediately respond to requests for comment.
The US$44-billion acquisition is the culmination of a remarkable saga, full of twists and turns, that sowed doubt over whether Musk would complete the deal.
It began on April 4, when Musk disclosed a 9.2 per cent stake in the company, making him its largest shareholder. He then agreed to join Twitter’s board, only to baulk at the last minute and offer to buy the company instead for $54.20 per share.
Over the course of just one weekend in April, Musk and Twitter reached a deal at the price he suggested.
However, Musk had second thoughts in the following weeks, complaining publicly that he believed Twitter’s spam accounts were significantly higher than the company’s estimate of less than 5 per cent of its monetizable daily active users.
The acrimony resulted in Musk giving notice to Twitter on July 8 that he was terminating their deal on grounds that Twitter misled him about the bots and did not cooperate with him.
Four days later, Twitter sued Musk in Delaware, where the company is incorporated, to force him to complete the deal. Twitter accused Musk of buyer’s remorse, arguing he wanted to get out of the deal because he thought he overpaid.
However, Musk on October 4 performed another U-turn and offered to complete the deal as promised. The Delaware judge gave him an October 28 deadline to close the transaction and avoid trial.
Amid interest from foreign investors, KBank ‘to invite bids’ for its asset management business
THURSDAY, OCTOBER 27, 2022
Kasikornbank (KBank) will invite bids for its asset management business after seeing interest among foreign investors, according to a Bloomberg report on Thursday, citing a source familiar with the matter.
Among investors who have reportedly expressed interest in bidding for Kasikorn Asset Management (KAsset) are French asset management company Amundi, American investment company TPG and Luxembourg-based private equity and investment advisory firm CVC Capital Partners.
It is expected that the bidding agreement would cover acquisition, share purchase or even business partnership.
KBank had earlier expressed its intention to sell its asset management business and that the bank was seeking business opportunities to benefit customers and shareholders.
“If the transaction [sale of KAsset] is made, the bank will reveal information in line with the Stock Exchange of Thailand’s regulations,” the bank said.
Bloomberg had reported that Thailand’s large financial institutions, SCBX and KBank, also have planned to sell their asset management business.
Human resources is often considered to be the people who look after documents, holidays, and benefits. But human resources is more than that, especially for DTGO.
At DTGO, human resources follows the concept of “Do Good, Do Great, Do It with Happiness”. Ms. Kannikar Sethi, Executive Vice President, explains the group’s culture, which recently won the HR Asia Best Companies to Work for in Asia 2022 (Thailand Edition) award from HR Asia magazine.
Q: How does DTGO develop its people under the concept of “Do Good, Do Great, Do It with Happiness”?
A: At DTGO, human resource management is called “Corporate Culture Development”, we believe that culture is the key to developing human potential. Building a corporate culture is therefore our main task. We don’t have employees but “organization members” because membership means participation in a society with duties and roles.
This is about “People Branding” or creating a society of smart and good-hearted people according to the DTGO “Core Values”. We look to develop talented and ethical people who enjoy giving. Before our members can apply our core values in the world, they must have coherent principles and values to succeed.
Our organization’s name reflects its values in 4 letters: D, T, G, O.
D is for “Dynamic”, which means to honor your words and your time. Keeping your word is to honor yourself and others so that you receive trust and support in everything you do. Our time in life is precious and limited. Once it’s gone, we cannot regain even a second. We must throw ourselves into what we aim to do. If we follow both principles, we’ll be dynamic and successful. T is for “Teamwork”. We must work as a team, always ready to help one another, respectful of others and grateful for their differences, which lets everyone reach their potential to bring success to the team. G is for “Goodwill”, which involves “Good thoughts, good words, good deeds”, the basis of humanity in every society. O is for “Open-Minded”, to listen and think positively. Open-mindedness and positive thinking are the key to happiness. Generosity helps us listen carefully and opens a boundless sea of knowledge.
Apart from the “Core Values” that help enhance our corporate culture, we have 21 “Good People” life principles and the 14 precepts of our “Moral Code”, which guide our members in how to think, speak, and treat each other, aiming to create community full of love and unity to benefit people at large.
In the part of “Do Great”, we support limitless learning for our members, under a “University Model” for them to select and manage their personalized training. We have career choices for members to choose a path aligned with their interests and abilities. They can plan their roadmap through an “Individual Development Plan”, setting challenges and creating constant diverse career opportunities.
Finally, we believe everyone performs well when they are happy. We take care of our members in all aspects, including their physical, emotional, economic, and social well-being. An appropriate workplace helps ensure good quality of life, and happiness, leaving members free from stress and ready to work and live a meaningful life each day.
DTGO doesn’t prioritize profit. We create a culture where members think of contributing to society first, under the philosophy of Senior Chairman Dhanin Chearavanont: “All our undertakings, to which we devote our intellect, our strength, and our time, must benefit the people at large, the society we live in, our organization, and all other stakeholders.”
Q: Which key factor led DTGO to become one of the best organizations to work for in Asia?
The HR Asia Best Companies to Work for in Asia 2022 (Thailand Edition) award from HR Asia Magazine comes from building the strong corporate culture I’ve described.
DTGO has a “Mother Tree” concept. We see DTGO as a forest. Big trees pass on nutrients, information, and alerts to other plants to keep the forest in balance.
DTGO’s organigram therefore has top management at its base not its top. They are like the roots that help their subordinates – the trunk, leaves, and branches – to grow and bear fruit. What matters most is a nurturing leader with a giving mindset who can inspire subordinates to grow happily, bloom and bear fruit, creating a strong ecosystem. We believe in roles rather than positions, so we use forest roles. The Chairman, for example, is Taproot Captain and the CEO is Root Captain, moving along the tree to the tips of the leaves. Our understanding of our roles lets us work across functional lines to be flexible, not sticking to the original format.
Q: How did DTGO develop into a learning organization?
A: We believe that everyone who joins us is talented. But we want to help people gain new skills. We have a wide variety of businesses, not just real estate but also finance, investment, entertainment. Everyone who works with us, regardless of their expertise, will eventually gain new skills.
For our people to learn new skills we also need a learning strategy that meets different needs and levels of expertise. We have compulsory courses for core values. Other skills are in the “Individual Development Plan”, which always assesses core competencies. We also encourage members to study outside the organization.
Q: Can you explain DTGO’s work anywhere policy, predating COVID?
A: In a few months it’ll be 2023. We’re going through a pandemic that has changed the whole world of work. People are now used to working together without having to sit in the same place.
But this is not unusual for us. The company’s “Work Anywhere” policy was piloted before the COVID-19 pandemic because we understand the world must change. The new generation has different needs from the old generation. We looked into it and found there was no need to come and sit and work at the office for effective working.
With our mission to be a global organization, flexible remote working lets us work across the world with foreign partners. This policy is therefore a key element to achieve that goal.
Next year, DTGO will focus even more on diversity and inclusion. This is another challenge in the world of work as everything changes fast. The group now has many generations as well as members working in branches around the world.
It’s crucial to create an organizational culture that values diversity and participation. The ultimate answer is giving everyone equal opportunities, regardless of age or gender, under the vision of an organization that nurtures everyone’s happiness, goodness, and talent.
Thai corporates investing THB300m in 5G pro hub to promote e-sports and digital tech
WEDNESDAY, OCTOBER 26, 2022
Nongluck Ajanapanya
Three Thai corporate giants, Siam Piwat, True Group and Kantana, have teamed up to launch “True 5G Pro Hub” in an effort to support and advance the nation’s e-sports community.
The space is also intended to encourage and educate the country’s young generation about digital technology.
Kantana will be in charge of running the hub, while True will support digital technology devices and equipment, including the 5G network, and Siam Piwat Group will provide the location and oversee the hub’s decoration and maintenance.
Each party will contribute around 100 million baht, for a total of 300 million baht, to run the hub for three years.
(From Left) Jatuporn Laosongchitra, Piroon Paireepairit and Jiraj Kaljaruek
Piroon Paireepairit, strategy committee and head of working group 5G, True Corporation, said at a press conference on Wednesday that the fund includes a budget for holding events, such as e-sport tournaments during this time period.
“This area is expected to be a one-stop shop for e-sports, with space for large tournaments and a community that caters to the needs of both amateurs and professionals. It will also be a new world in which new generation people will be able to use cutting-edge technology to endlessly expand their future skills,” said Piroon.
He insisted that the “True 5G Pro Hub” will accommodate the needs of the three new generation lifestyles of gamers and e-sports participants, Generation Z lifestyles, and future skills.
The hub is currently under construction on the 4th floor of Siam Discovery, said Jatuporn Laosongchitra, senior vice president – core business development, Siam Piwat. One-third of the 2,000 square metres of space have been completed.
It will be officially opened for full service on December 20.
“We believe that ‘True 5G Pro Hub’ will be a new destination for new generation people in the future, full of opportunities for expanding business,” Jatuporn noted.
Jiraj Kaljaruek, director of content and marketing at Kantana Group, a leading content and production company in Thailand, said that the “True 5G Pro Hub” will be another important milestone in driving Thailand’s digital economy to sustainable growth with an economic value of up to 37.6 billion baht.
He emphasised that this is not only an extension and development of the e-sports industry but also skills and lifestyles that the younger generation are interested in, as well as future skills with digital connections.
The hub will be divided into five zones: gaming zone for amateur players to share their skills, private VIP zones for professional players seeking privacy, arena zones for events and e-sports competitions, future skills training zones, and food and beverage services.
The partnership of these three leading companies in real estate, technology and content production highlights the potential growth of Thailand’s e-sports and gamers industry. According to statista.com, the revenue in the e-sports market could reach $5.94 million in 2022. Meanwhile, revenue is expected to grow at a 12.25 per cent per annum, resulting in a market volume of $10.58 million by 2027.
Academics divided on the impact of conditions set for True-DTAC merger
WEDNESDAY, OCTOBER 26, 2022
The conditions for the merger of True Corporation and Total Access Communication (DTAC) will benefit the telecom industry, a telecommunications academic said on Wednesday.
Suebsak Suebpakdee said the conditions should be applied to all operators in the industry to ensure maximum benefits for consumers.
The regulator, National Broadcasting and Telecommunications Commission (NBTC), last Thursday voted 3:2 in favour of the proposed merger.
The conditions set for the merged entity include service fee controls and ceiling, independent verification of cost structures and service pricing for at least five years after the merger, market space for the operation of mobile virtual network operators, and separate rates for voice, data and messaging services.
In addition, True and DTAC must use their existing brand names – True Move H Universal Communications (TUC) and Dtac TriNet (DTN) – for three years before they can adopt a new brand name and share their respective frequencies.
“We are confident that the merger will not cause unfair competition or negatively impact consumers,” he said, adding that the merger will instead improve the telecommunication sector’s efficiency and regional competitiveness.
However, Assistant Prof Suchart Tripopsakul, from Bangkok University’s School of Entrepreneurship and Management, said earlier that conditions prioritising consumer benefits may disrupt True and DTAC’s future strategy.
Suchart said the three-year embargo would affect True and DTAC’s plan to combine their strengths to attract more users, the core purpose of the merger. This condition alone would cost True and DTAC the opportunity to become the market leader immediately after the merger, he added.
Suphajee Suthumpun, Group Chief Executive Officer at Dusit Thani Public Company Limited
Dusit Central Park: A project which integrates legacy, heritage, and futureSuphajee Suthumpun explained the Dusit Central Park project consists of 4 key elements: hotel, residence, office, and retail. The hotel is expected to be completed in 2024 during the first quarter; the other elements to be followed in the same year.
(From Left) Jatuporn Laosongchitra, Piroon Paireepairit and Jiraj Kaljaruek
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