World Gas eyes 17 per cent sales growth to Bt14 billion

 It is also seeking to access markets in neighbouring countries such as Myanmar, Laos and Cambodia by forming alliances with local partners. In particular, Laos would also help the company capture more market share in southern China. The international strategy has been drawn up in preparation for market liberalisation under the Asean Economic Community in 2015.
The company is set to build |two gas terminals for Bt500 million each in Chon Buri’s Bang Pakong to cover the Central region and Khon Kaen to cover the Northeast.
Bang Pakong can hold 4,700 tonnes and Khon Kaen 2,000 tonnes, Theerachai Leenaban-chong, chief marketing officer, said last week.
The company wants to list on the Stock Exchange of Thailand within a few years to mobilise funds to serve further expansion in the future and to build a stronger capital base, as this business requires huge working capital.
Successful management and marketing have driven the company’s sales during the past three years from Bt9 billion to Bt10 billion and Bt12 billion. Its earnings reached Bt300 million last year.
For this year, the company targets sales volume of 900,000 tonnes. It reported sales of 430,727 tonnes worth Bt6.7 billion during the first half.
To facilitate transportation, the company’s fleet is managed by Eagle Intertrans, its subsidiary for international logistics. Its more than 100 bulk carriers are equipped with the global positioning system so that the company can monitor and support delivery with safe and rapid transportation.
World Gas ranks as the second biggest LPG distributor with a share of 19.18 per cent after PTT Plc, which holds 38.83 per cent. However, the company is the biggest supplier for automobile consumption with 25.51 per cent of that market. Now 927,046 cars are running on LPG.
LPG demand is divided into 65 per cent from households, 22 per cent from cars and 13 per cent from industry.
However, the government aims to gradually reduce the subsidy for industrial and car use, which will directly raise production costs. The full float of the LPG price would also increase it to Bt20 per litre from Bt12 currently.
“Even without the government’s subsidy, LPG is still cheaper than other fuels, which is an important reason why consumers are attracted to it,” he said.
The company believes that the number of LPG cars will surge in line with rising oil prices.
The government needs to |have a clear explanation for |consumers of whether it will stop subsidising LPG. If the government wants to maintain the subsidy for household use, out of concern that abandoning it will hit consumers and its political constituencies nationwide, it should announce how much it will spend for the subsidy. It also has to present clearly the effect from the price increase on cooking gas, he added.