FRIDAY, March 29, 2024
nationthailand

Briefs

Briefs

Bangchak sets Bt26 bn for renewable growth Bangchak Petroleum plans to spend about Bt26 billion through 2019 on expanding capacity of its renewable energy business by five times, a top executive said.

The company, which has solar-power capacity of 118 megawatts, aims to sign contracts with potential partners to boost the capacity to 200-250MW this year, president Chaiwat Kovavisarach said.
Bangchak has diversified into renewable business, including biofuel and solar power, and exploration and production in the past few years to help minimise risk from the refinery sector.
Solar power contributed about one-third to the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) in the first quarter versus 17 per cent a year earlier.
Bangchak aims to reduce the contribution from its refinery business to 30-35 per cent of core earnings over the next five years from about 50 per cent now, Chaiwat said.
Earnings contribution from the exploration and production business is expected to rise to 20-25 per cent over the next five years from a target of 7 per cent this year, he said.
The company runs a sole refinery with nameplate capacity of 120,000 barrels per day and operates marketing and non-oil retail businesses through its service stations. – Reuters 
 
TUF sees higher profit
Thai Union Frozen Products (TUF), the world’s largest canned-tuna producer, said yesterday that it expected higher net profit in 2015 and aimed for a gross profit margin of 15-16 per cent due to lower prices of raw materials.
Rising sales will help boost the company’s profit and the profit margin should improve in the second and third quarters after posting a 5-percentage-point drop to 13.8 per cent in the first quarter, said Wai Yat Paco Lee, deputy general manager of investor relations.
TUF maintains its sales target of US$5 billion (Bt168 billion) this year and expects to reach $5.5 billion in 2016 after the planned acquisition of US competitor Bumble Bee Seafoods is completed late this year, said Joerg Ayrle, chief financial officer.
The company is in the process of raising $400 million by offering new shares to help finance acquisitions including the purchase of Bumble Bee. Ayrle said he expected the capital raising to be completed early in the third quarter.
The Bumble Bee acquisition is pending approval from US antitrust authorities and Ayrle said he was “comfortable” the deal will be closed by the end of 2015. – Reuters 
 
 
Kobe Steel, Millcon ink MoU
Kobe Steel, the largest steel maker in Japan, yesterday inked a memorandum of understanding deal with SET-listed Millcon Steel for cooperation on production of special-grade steel to supply the auto industry in the region.
According to the MoU, Kobe Steel will hold a stake in Millcon Special Steel, a joint venture with Millcon Steel, making it the first and only steel manufacturer in Southeast Asia to produce special-grade steel, said Millcon chairman General Winai Phattiyakul. 
According to the Industry Ministry, Thailand produced 1.88 million automobiles last year and production is expected to reach 3 million by 2020. 
Potential clients for the special-grade steel include auto-parts producers such as Kobe CH Wire (Thailand) and Mahajak Kyodo Co.
 
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