Bangchak to spend THB6 billion for business expansion

Thailand’s Bangchak Petroleum, which marks its 100th year in 2013, will focus more on alternative-energy production, especially solar energy. Bangchak President Vichien Usanachote said the company will also bring into line their supplementary businesses, as well as their domestic and overseas convenience stores.
 
Bangchak exports lubricants to Laos, Vietnam, Cambodia, Fiji and Kenya, and lately to Myanmar where it has opened its first petrol station. The company has plans of launching new businesses in these markets as part of its diversification strategy.
 
The company has allocated THB6 billion (US$200.8 million) for the expansion of its business. The funds will be used to increase Bangchak’s efficiency and bring in more environmentally friendly processes, keep its refineries producing at 110,000 barrels per day, open two environment-friendly stations, and increase its mini Big C convenience stores to 100.
 
Its solar electricity projects, called Sunny Bangchak, in Chaiyaphum and Ayutthaya, now in their second phase, are expected to produce 32 megawatts (MW), which will increase total production to 70MW, when combined with the first phase. The power will be sold to the Provincial Electricity Authority in the current quarter, and earnings will reach at least THB1.4 billion (US$46.8 million).
 
Bangchak projects earnings before interest, taxes, depreciation and amortization (EBITDA) of THB10 billion (US$334.7 million) this year, up by 30% year-on-year. (January 30, 2013)