PTTOR to focus on productivity improvement
PTT Oil and Retail Business (PTTOR) will from now on focus productivity improvement and inorganic growth in line with the company’s main strategy. The aim is to simultaneously strengthen the oil business and expand the company’s retail business and overseas operations, Jiraphon Kawswat, the company’s acting president and chief executive officer, revealed this week.
“In the future, the proportion of earnings before interest, taxes, depreciation, and amortization (EBITDA) between other businesses and oil business will change from 30 and 70 per cent respectively. To create continuous growth, we plan to establish subsidiary companies, or join with national and international business allies, in order to bring the strong point of each to support the company’s growth”.
The company is currently drawing up a five-year plan for the period 2020 to 2024 and expects to present this to the committee before the end of the year.
The company’s overseas business group continues to expand its successful business models in Thailand including PTT gas station, Café Amazon, and Jiffy convenience stores abroad, localizing them to suit the lifestyle in each country. “PTT is also helping Thai SMEs entrepreneurs to extend their business overseas” Jiraphon said.
PTT has more than 280 gas stations in Laos, Cambodia, Philippines, and Myanmar and is set to increase this number to 675 in the next five years. Similarly, the present 200 branches of Café Amazon in Laos, Cambodia, Myanmar, Singapore, Malaysia, China, Japan, and Oman will be expanded to 700 branches in the next five years. “However, we are not planning to expand the 70 branches of Jiffy convenience stores. These are currently being renovated following problems with the supply chain,” the acting president added.
PTTOR is the flagship of PTT group and encompasses three main business groups, namely, the oil business, the retail and other non-oil business, and the overseas business. In 2018, its saw sales of Bt500 billion and a profit of Bt7.9 billion.