PTT plans sixth subsidiary to handle retail operations
PTT has spun off its retail business into a new subsidiary that will eventually be called PTT Oil Retail Business Co.
“PTTOR will be the group’s sixth flagship business, the same as PTTEP, PTT Chemical, Thai Oil, IRPC and GPSC. The new firm will also have its own policies and more independence,” said Tevin Vongvanich, president and chief executive officer.
The reorganisation is meant to establish an explicit and practical operating system and enhance the group’s competitiveness to reflect the rapid changes in the energy industry, he said.
Moreover, he said, this will increase the efficiency and create more opportunity for global expansion in the fuel retailing market, which is highly competitive.
The establishment of the new company will need approval from many bodies, including the Energy Ministry, the Cabinet and shareholders.
Tevin said he could not speculate at this point on further plans and targets such as revenue and profit as the new company would have to work with many other groups. But he did say the new firm should be completely in place within the first half of 2017.
He said the new company would help broaden PTT’s footprint overseas in the oil-product retailing business. “PTT has already entered Laos, Cambodia and the Philippines.”
The new company will handle retail marketing through PTT service stations nationwide and overseas, and commercial marketing of fuel including liquefied petroleum gas, aviation fuel, and lubricants. It will also manage business infrastructure, petroleum logistics and supply, and other retail businesses and automobile maintenance services such as Cafe Amazon and Fit Auto, as well as new businesses such as restaurants, beverage outlets, franchises and hotels.
PTT operated oil business 38 years ago with a market share 10-per cent at the time. Currently, the company is securing up to 40 per cent in oil business, while foreign oil firms are gaining 32 per cent, and the rest of 28 percent are from other local oil firms.
The reorganisation is meant to increase business efficiency and enhance the competitiveness of its fuel-retailing unit, particularly to drive its retail business towards the international arena, which will help boost future income. This in turn will enable PTT to focus on Thailand’s energy-security strategy.
The reorganisation is also expected to help PTT promote small and medium-sized businesses regionally.
Staff will be given the opportunity to stay with the same company they are working at now or to transfer to the new firm.
