Esso to invest Bt2.2 bn annually in bid to be No 2
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Esso will invest Bt2.2 billion every year in Thailand and expects to be in second position in the retail fuel market next year, while supporting the government's energy price restructuring to reflect real costs.
Neil Hansen, chairman and managing director of Esso (Thailand), said that of the total Bt2.2 billion, about Bt1 billion would be used to finance improvement and expansion of the retail business and Bt1.2 billion would be used for improvement of the refinery and petrochemical business, its support industry.
Yodpong Sutatham, director and retail sales manager of Esso (Thailand), said the company planned to add 30 service stations. Currently, it has 520 stations with combined sales of about 3 billion litres per year.
Next year, Esso (Thailand) is targeting a 5-per-cent rise in sales in order to capture second position in the retail fuel market, Yodpong said.
Human resources are the key to the success of Esso (Thailand), which operates an oil refinery, an aromatics plant and Esso service stations, Hansen said. It has about 2,600 employees.
Yodpong said that for the 120th anniversary of Esso’s operations in the country, it had launched a Bt30-million marketing campaign.
Its sales of E20 (gasohol that is 20 per cent ethanol), which began later than its competitors, will be available at 80 per cent of Esso’s service stations next year, he said, adding this could double E20 sales to 20 million litres per month and market share.
Currently E20 is available 300 Esso stations.
Esso’s fuel sales amount to Bt200 billion per year. Of the total, Bt100 billion is from the retail business, which has seen annual growth of 2-3 per cent on average.
Esso (Thailand) also supports cancellation of gasohol 91 to lessen the administrative costs of service stations.
Mongkolnimit Auacherdkul, director at Esso (Thailand), said the company supported the Energy Ministry’s price restructuring to reflect real costs, and this would also help consumers use fuel more efficiently.
He said that given recent sharp drops in global crude-oil prices, all companies with refineries had suffered a loss from stocked oil, as crude prices had stayed at around US$100 per barrel. Companies’ oil stocks usually amounted to 6 per cent of sales. However, the oil price currently stands at $80-$90 per barrel.
