Thaioil is ready to overcome the challenges of the energy industry through the 3 Vs strategy to diversify risks. financial restructuring Continuing to invest in new businesses, New s-curve, olefin petrochemical business in CAP Indonesia, ready to become a sustainable 100-year organization
On March 31, 2022, Mr. Wirat Uanarumit, Chief Executive Officer and President of Thai Oil Public Company Limited or TOP revealed that the company has reviewed the strategic plan in accordance with the business environment and context. Ready to step into a sustainable 100-year organization
Under the concept of Building on Our Strong Foundation, the business will grow from the company’s strong refining foundation to petrochemicals and high-value products. Distribute products according to market demand with deep penetration in demanding regional markets. as well as diversifying investment into low-volatility businesses and investing in new S-Curve businesses, in line with the goal of having 40% of profits from petroleum business, 40% petrochemical business, 10% power business and 10% new by 2030
The said plan is to meet the challenges of the current energy industry. From the economic uncertainty affecting both the supply and demand of the Oil & Gas business, the transition to Energy Transition drives towards clean energy. and the growth trend of the electric vehicle (EV) business. Environmental policies of many countries around the world are more stringent.
Thailand aims to reduce net greenhouse gas emissions to zero (Net Zero GHG Emissions) in 2065, including the transition to the era of data and fast technology. Affects the changing behavior of people. All of these are challenges that Thaioil has to face.
It will be implemented through three core strategies (3Vs): 1) Value Maximization: Integrated Crude to Chemicals Strengthen the petroleum business and build competitiveness through the CFP (Clean Fuel Project) and expand the petroleum business. to petrochemical and High Value Product (HVP) businesses, which last year invested in PT Chandra Asri Petrochemical Tbk (“CAP”) in Indonesia. This is the first step towards investing in the olefin business.
2) Value Enhancement: Integrated Value Chain Management Regional investment & market playground Value chain management through the existing customer base in the region Distribute products according to market demand with deep penetration in demanding regional markets. Ready to look for suitable investment opportunities in the region, prepare the customer base to support after the completion of the CFP project, and expand the business model to be closer to customers. to reach the needs of customers
3) Value Diversifications growth distribution to make a stable income by focusing on investment in the electricity business from renewable energy Support volatility from refining and petrochemical businesses Along with seeking new business opportunities (New S-Curve) in line with industry trends and energy changes in the future by investing through Corporate Venture Capital (CVC) and investing in new businesses (Step Out) such as Biofuel, Biochem, Bioplastic and Hydrogen
At present, the major projects that Thaioil are working on In addition to the CFP project is the investment in the olefin petrochemical business in CAP Indonesia, the largest integrated chemical producer in Indonesia at the end of last year. This will help create new growth and meet the strategy of transforming the business to high-value petrochemicals.
which Thaioil will receive a return from this investment immediately It is also expanding the market to Indonesia where there is a large demand for petrochemical products. and has a tendency to grow in the future because it still relies on imports from abroad, which at present CAP has a total production capacity of 4.23 million tons per year and has a plan to build a 2nd petrochemical plant to support the goal of expanding the production capacity to double to 8 million tons per year within the year . 2016
In addition, to prepare for long-term goals in the year 2026 – 2030 that will continue to create new growth or New Round of Growth, the Board of Directors therefore consider the financial restructuring to support investment opportunities according to strategic plans for future growth
Mrs. Wanida Boonpirak Senior Executive Vice President In terms of finance and accounting, Thai Oil Public Company Limited said that the Company has a plan to strengthen its long-term financial structure. in order to be ready to support the business expansion according to the strategic plan by preparing to offer new ordinary shares which will reduce the net debt-to-equity ratio (Net Debt-to-Equity Ratio: D/E) to less than or equal to 1 time and maintain the credit rating rating) to be in the investment grade criteria, making the company more flexible in its business operations.
At the same time, it will reduce its investment in Global Power Synergy Public Company Limited (GPSC) totaling 304,098,630 shares, representing approximately 10.78% of the total issued and sold shares of GPSC, totaling approximately 22,351 million baht which will be used to repay bridge loans from strategic investments in olefin business in CAP and the Company will recognize gains from the sale of such shares in the Company’s income statement.
In addition to building business growth Thai Oil still adheres to sustainable management guidelines. including improving production processes to enhance operations in accordance with the circular economy mechanism, focusing on investments in various businesses or a new business that takes into account the environment For the ninth consecutive year, Thaioil has been announced as a member of the Dow Jones Sustainability Indices (DJSI), reflecting its focus on economic, social, environmental and corporate governance (ESG). ) internationally
