23 November 2022

Bangchak Group Reveals Strategy 2030

Emerged from the COVID-19 Crisis, Stronger, Unveiling New Vision and Corporate Identity Towards a Sustainable Future

Bangchak Group reveals corporate strategy reflecting sustainable growth following the COVID-19 crisis with strong performance in the first 9-months of 2022, an EBITDA of 37,773 million Baht. In addition, the Group unveils new vision of “Crafting a Sustainable World with Evolving Greenovation” and new corporate logo, mobilizing the low-carbon society, committed to balancing energy security and enhancing sustainability.

Chaiwat Kovavisarach, Group Chief Executive Officer and President, Bangchak Corporation Public Company Limited, stated that from the COVID-19 crisis which began in 2020, Bangchak Group adapted according to the 3Rs approach, namely, Refocus: accelerating the balance between energy security and the transition to clean energy, Restructure: creating new channels to access markets and customers, and Reimagine: selecting opportunities and investment tools that optimize returns for the company, resulting in the company’s continued strong performance since 2021. Most recently, in the first 9-months of 2022, it recorded and EBITDA of 37,773 million Baht, from the previous average of 10,000 million Baht from 2015 - 2020, reflecting outstanding growth from strong fundamentals, strategic agility to adapt to evolving circumstances, and ongoing business expansion in various areas.

“Today, Bangchak Group is moving towards a critical challenging new era to achieve Net Zero GHG Emission by 2050, with the first milestone of Carbon Neutrality by 2030. As such, Bangchak adopts a new vision and mission, “Crafting a Sustainable World with Evolving Greenovation”, set growth strategies through to 2030 for the 5 business groups aligned with the BCP 316 NET plan that will lay the foundation of future sustainable growth targets” Chaiwat stated.

Refinery and Oil Trading Business Group Leverage growth from new capabilities in addition to refining and process efficiency enhancements, the company is committed to its Niche Product Refinery capacity such as Unconverted Oil, and Sustainable Aviation Fuel (SAF). The company aims to increase the EBITDA proportion of Non-Transportation Fuel to more than 60% by 2030.

Marketing Business Group Accelerate consumer-centric services development beyond the service station, under the concept of becoming “YOUR” Greenovative Destination for Intergeneration” through the scale up of non-oil offerings such as food and beverages, and EV Chargers, as well as partnerships and revenue from franchise scheme, expanding the service station network to cover 1,900 stations, and 3,000 Inthanin locations nationwide by 2030.

Green Power Business Group Operated by BCPG Public Company Limited, the company targets increase it capacity to 6,800 GWh, mainly from green power business growth from local projects under the new Power Development Plan (PDP 2022 from 2022 - 2037) and development abroad as the world transitions to clean energy, compounded by future peripheral growth such as battery and energy storage, Energy as a Service (EaaS), new forms of energy, and low-carbon businesses.

Bio-Based Products Business Group Operated by BBGI Public Company Limited, the company targets to increase the proportion of High Value Products to more than 70% of EBITDA, to become its core business, emphasizing health products developed through Synthetic Biology (SynBio) to design and manufacture desired qualities for the global health and beauty segment such as good health and well-being. Moreover, the company plans to strengthen and expand its biofuel business, especially Sustainable Aviation Fuel (SAF) for the aviation industry.

Natural Resources and News Business Group Addressing energy security through the expansion of natural resources businesses, with the exploration and growth business targeting production at more than 100,000 boepd (barrels of oil equivalent per day) by 2030 through capability enhancements of OKEA ASA Norwegian oil field holdings, of which Bangchak Group is the principle shareholder. Moreover, it is exploring growth in other high potential locations. In addition to natural resources businesses, the company targets to increase the proportion of new developing businesses to 7,000 million Baht EBITDA by 2030, such as Winnonie, the Battery as a Service Ecosystem for EV-bikes, Liquefied Natural Gas (LNG), and New S-Curve businesses etc.

Chaiwat added the comprehensive growth plan strategy covering all businesses will unlock EBITDA growth up to 10-fold by 2030 from the average 10,000 million Baht from 2015 - 2020, while also balancing energy security and environmental sustainability, reiterating the approach to develop sustainable business innovation in harmony with the environment and society that Bangchak has adopted for almost 40-years.

“From 2015, Bangchak Group, as the Leader in Energy Transition, expanded into new businesses such as green energy business, bio-based product business, natural resource business, Bangchak Initiative and Innovation Center (BiiC), in addition to its foundational businesses of refining and oil trading, and marketing businesses, and becoming a transnational corporation with operation in more than 10 countries around the world. Like a journey into a new era, where more opportunities for growth await, leading to the introduction of the new corporate identity and new corporate logo, symbolizing everlasting innovative energy power towards the future, reflecting the vision of “Crafting a Sustainable World with Evolving Greenovation”, mission of “Committing to accelerate sustainable energy transition while balancing energy security. We are energizing lives through greenovative solution and promoting ESG for all” and corporate strategy for business growth and expansion of Bangchak Group” Chaiwat stated.

The new corporate logo comes into effect starting 23 November 2022. The change will not affect the company’s businesses and services, service stations and green miles members will remain unaffected by the change until further notice.