Mr. Rangsan Phuangprang, Executive Vice President of PTG Energy Public Company Limited (PTG), revealed that the company’s performance this year will benefit from the government’s adjustment of the market price to be closer to be more real or moved up to about 1.8-2.0 baht/liter from around 1.40-1.60 baht/liter, which is the level that oil traders cannot stay While the oil sales volume has continued to improve since the end of last year. and soared at the beginning of this year after various activities returned to normal including opening the country
“Marketing costs run into reality more. And better oil sales volume will result in our earnings this year much better. In fact, the growth has been very good in terms of good volume since last year. But the marketing cost is still under pressure. In terms of growth in the last quarter was better than expected. All last year met the minimum target of 6%, but this year, since the beginning of the year, we have seen a 2-digit growth. This year we aim to expand 8-12 million liters, expecting in our hearts that we should grow more if nothing comes. Hit it again,” said Mr. Rangsan.
PTG executives said that the increase in oil marketing margin is a matter that the government understands the market more. Once oil prices have dropped, fair business practices should be restored to consumers, oil sellers and producers. Oil traders have previously been pressured on both sides by rising oil prices. And the supply in the market is shortage from the impact of the electricity producer sector pulling oil to replace natural gas. Including the government taking care of oil prices to help consumers. which oil traders have always cooperated
But when oil prices in the world market continued to decline And everyone saw the environment that the government came down to take care of oil prices quite a lot. causing the market to distort an imbalance At this point, the state understood and tried to take care of it. Because the marketing cost of 1.40 baht/liter is impossible to survive. And the power producer sector has begun to bring more gas back to use. Causing supply problems to ease to some extent, but not yet exhausted because it is expected that it will take time to the month March-April until it relaxes back to normal.
The group of traders also tried to send a signal to the government to know that we could not survive. The government has seen what happened to our industry. trying to help to some extent by adjusting the marketing value because the diesel ceiling is lowered which already causes traders to bear additional burdens Every oil trader therefore receives benefits from this point. But it only compensates for the damage done in the past. The marketing margin has not returned to the level it should have been.
“We used to ask for 2 baht and asked to go back to the same place before, but at that time the wages had not increased. Inflation is still not that high and actually only increased to 1.80 baht. It’s still better. We’ll wait for it to loosen up a bit and will send another signal that 1.80-2.00 is the previous situation. can’t stay because it will affect again in the future We also have to take care of quite a lot of employees. return some of the profits to society All camps do this, wages increase. Shipping costs are not reduced. But overall, it is considered better that the marketing margin has risen to a certain level.
Mr. Rangsan said that he was about to enter the election. Oil traders themselves do not want to put pressure on the government. And during Songkran, there must be measures to help people travel. But it still sends signals periodically. It is expected that at the end of the 2nd quarter, they may ask to discuss again if it is a marketing margin of 2.30-2.50 baht, it should be enough to survive.
As for PTG’s growth this year, 94-95% of the main revenue share still comes from the oil retail business. Although the non-oil business can grow up to 40-50%, but in terms of gross profit, the proportion of non-oil will return to 20-25% this year, which the company will aim to achieve the goal of pushing the gross profit margin. The growth of non-oil grew to 50:50, no later than the year 2025, which is the reason why PTG accelerated the expansion of non-oil to grow more.
This year, PTG has placed an investment budget of 2,500 million baht for non-oil, while the investment budget for the oil business is 1,500 million baht, alternating with the oil business in the past. which the marketing value is better together with the amount of more recalls should improve the company’s cash flow This allows us to expand our investment more than before.
“Our radar in the non-oil business Also involved in retail, health, clean energy, digital. We will lean more towards digital to support policies to reduce dependence on labor. because now there is a problem There are signs that Thai workers are not enough. Maybe have to study the use of foreign workers to help support or not?