FRIDAY, March 29, 2024
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Bangchak targets 20-per-cent earnings growth in 2017

Bangchak targets 20-per-cent earnings growth in 2017

Diversified oil refiner Bangchak Petroleum Plc is targeting a 20-per-cent growth this year of its earnings before interest, taxes, depreciation, and amortisation, after reporting disappointing fourth-quarter results on Monday.

The key drivers will continue to be the three main businesses -- oil refining, oil marketing, and renewable power -- run by its newly listed subsidiary BCPG Plc. Bangchak is also looking at entering the “bio products” business, which can generate 30-40 per cent growth this year, its president and chief executive Chaiwat Kovavisarach said.

He attributed Bangchak’s disappointing fourth-quarter results to a decline in the marketing margin of its oil-retailing business in October because of the mourning period following the passing of His Majesty King Bhumibol Adulyadej. In December, the firm refrained from a price hike as a New Year gift to Thai motorists.

“The refinery operated above target. [Oil] marketing, by sales volume, met the target. In terms of performance, we were on target. That [marketing margin squeeze] was a one-off event,” he explained.

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