Bangchak Unveils $970m Restructure to Double EBITDA by 2028
Thai energy giant launches ‘Bangchak 100x’ strategy, focusing capital investment on refinery expansion, upstream assets, and critical infrastructure projects
- Bangchak is investing approximately $970 million (35 billion baht) between 2026-2028 as part of a major corporate restructuring aimed at doubling its EBITDA by 2028.
- The company will be reorganized into five core business groups: Refinery & Marketing, Trading, Upstream, Power & Infrastructure, and New Businesses.
- Key initiatives include increasing oil refining capacity, investing heavily in Sustainable Aviation Fuel (SAF), and aiming to triple the EBITDA from its non-oil retail business.
- The strategy also involves diversifying into new sectors such as critical infrastructure (e.g., data centers, battery recycling) and investing in future energy technologies.
Bangchak Corporation Plc is undertaking a sweeping corporate restructuring into five core business units, backed by a planned investment of 35 billion baht (approximately $970 million), as the energy group aims to double its Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) by 2028.
The three-year capital expenditure plan (2026–2028) is the centrepiece of the company’s new “Bangchak 100x” strategy, which seeks to balance energy security with a sustained drive towards its Net Zero target by 2050.
Chaiwat Kovavisarach, Group Chief Executive Officer and President of Bangchak Corporation, stated that the investment would focus on strengthening core operations, expanding into future infrastructure, and ensuring stable growth across its portfolio.
The Five Pillars of Growth
The revamped structure is built around five key business groups:
1. Refinery & Marketing and Biofuels:
This group will operate the Bangchak Phrakhanong and Sriracha refineries as a single unit to enhance efficiency. Refining capacity is set to increase from 265,000 barrels per day (bpd) in 2025 to 285,000 bpd by 2028, and over 290,000 bpd by 2030.
Crucially, the unit is investing heavily in Sustainable Aviation Fuel (SAF) and Hydrotreated Vegetable Oil (HVO), aiming for a combined capacity of 7,000 bpd by 2027 (with commercial SAF production starting by June 2026 at 5,000 bpd). In marketing, the company aims to boost its market share for oil from 29% to over 33% by 2030, while targeting a three-fold growth in Non-Oil EBITDA (Inthanin coffee and retail) by 2028.
2. Trading:
Elevated to a "new flagship" unit, the trading business moves beyond merely supporting the refineries to become a standalone profit centre.
It will leverage the group’s assets—refineries, depots, and logistics networks—to develop asset-backed trading and expand its domestic and regional market footprint while managing price risk.
3. Upstream:
The group aims to be a leading medium-sized petroleum explorer and producer in Southeast Asia. This unit will utilise its international experience from Norway to optimise operations for stable cash flow and will explore targeted investment opportunities to ensure long-term energy security.
4. Power and Infrastructure:
This unit will expand beyond renewables into Critical Infrastructure, including data centres, key utility systems, and battery recycling.
The goal is to grow the unit’s EBITDA to 7 billion baht (approx. $194 million) by 2028 through active portfolio management and strategic capital recycling.
5. New Businesses and Holdings:
Focused on future-proofing the company, this group will invest $30 million in new ventures. The focus areas include advanced clean energy (e.g., Bio-LNG, green ammonia, synthetic fuels, nuclear fusion), digital efficiency, and biotechnology, ensuring sustainable growth for the Bangchak group.
Chaiwat concluded that the company must proceed with "urgency and discipline," maintaining the strength of its core operations while driving the energy transition to deliver sustained growth and value for all stakeholders.
