Fuel services operator keen on U-Tapao business
BANGKOK Aviation Fuel Services Plc (BAFS) has expressed an interest in investing in aviation fuel service at U-Tapao airport and expects to finalise its model by the end of the year.
Prakobkiat Ninnad, managing director, said the company had proposed the plan to the Eastern Economic Corridor (EEC) Committee and Royal Thai Navy which operates the airport.
The company is exploring the possibility of a role in oil depot, aviation fuel or fuel pipeline services.
Once the EEC and U-Tapao Airport have been completed, about 34 million passengers are expected at the airport annually, with the estimated number close to that at Don Mueang International Airport which uses 1,100 million litres of aviation fuel a year, Prakobkiat said.
Aside from U-Tapao Airport, BAFS is also interested in providing services at other local airports which have been upgraded by the Department of Aviation, including Krabi, Udon Thani, Nan and Phrae.
Each airport may take as long as a year for a study on a joint investment plan, Prakobkiat said.
He said the BAFS is expected to post growth in income of about 4-5 per cent this year as more airlines have received licences to operate after the International Civil Aviation Organisation (ICAO)'s removal of Thailand's red flag and the expansion in tourism. In March, 16 airlines obtained licenses and about five airlines are being considered.
BAFS reported a total income of Bt3.64 billion last year.
“The company’s income is expected to reach Bt5 billion within 2021-2022 after the oil pipeline project to the North – Phichit-Lampang route is completed in the fourth quarter of 2019 and the company can fully realise income from Fuel Pipeline Transportation (FPT) which is expecetd to rise to 30 per cent from the current 20 per cent," he said.
In the second quarter of this year, BAFS is expected to see a rise in income with the contribution from aviation fuel service increasing by 9 and 9.9 per cent year-on-year in April and May respectively due to last year's low base, no runway shutdown at Suvarnabhumi International Airport, higher number of flights. This year, BAFS has set a budget of Bt5 billion for investment, about Bt4.7 billion of which will be in oil pipeline work in the North and Bt120 million in Uniwave Co Ltd which designs, produces and assembles aviation fueling vehicle and equipment.
BAFS holds a 90 per cent stake in Uniwave.
BAFS also expects to start a joint venture with PTG Energy Plc early next year.
Initially, three petrol service stations will be set up in Phichit, Lampang and Kamphaeng Phet provinces. BAFS will hold a 40 per cent stake in the joint venture with the majority stake of 60 per cent going to PTG Energy.
The joint venture will have a registered capital of about Bt100 million.
