RPCG set to see profit again
RPCG expects to return to profitability after three straight years of losses thanks to the income contribution from property firm Sammakorn and an additional profit of more than Bt100 million from the sale of refinery components.
RPCG’s executives believe that the switch to holding-company status will allow expansion in the fuel-retailing and property businesses.
Satja Janetumnugul, chairman of RPCG’s board of directors, said the company reverted to profitability after three consecutive years of losses due to the suspension of the oil-refinery operations in 2012. During that period, RPCG recorded more than Bt100 million in depreciation a year.
As for this year, the company expects more profit from Sammakorn after RPCG raised its equity stake in that company to 48.25 per cent from 25.25 per cent.
In addition, RPCG plans to sell components initially costing Bt100 million from the suspended oil refinery, which it hopes will bring in at least Bt200 million. RPCG spent about Bt20 million a year on maintenance to keep the components in good working condition.
This year, RPCG plans additional investment of more than Bt400 million to raise its stake in Sammakorn by 20 per cent and restructure the business into a holding company.
RPCG expects even revenue contribution from the fuel-retailing and property businesses. The fuel-retail revenue will come from its subsidiary Pure Thai Energy Co, which operates Pure petrol stations.
In addition, RPCG plans integrate the fuel-retail and property businesses in at least two community-mall projects, which should begin next year.
With an investment budget of Bt40 million to Bt50 million, the company plans to add 10 petrol stations this year via leasing of existing property belonging to other fuel retailers.
