12 December 2023

Bangchak Reflects Success in 2023 Across All Business Groups Propelling Towards a Robust 40th Year, Creating Stability and Sustainability for the Company and Thai Society

Bangchak Corporation Public Company Limited reflects success in 2023 after becoming the majority shareholder in Bangchak Sriracha Public Company Limited, surging ahead into the forefront of the international energy business with strength, through synergies and developing a platform for growth for sustainability, accessibility, and energy security, driving towards a low carbon society to achieve net zero greenhouse gas emissions by 2050.

Chaiwat Kovavisarach, Group Chief Executive Officer and President, Bangchak Corporation Public Company Limited stated “'The year 2023 is considered another year of success in the business operations of Bangchak. Every business segment has shown growth higher than the industry average, along with significant developments in various aspects of the business. This serves as evidence of the potential and capabilities that we take pride in. After becoming the majority shareholder in Bangchak Sriracha Public Company Limited (BSRC) or previously Esso (Thailand) Public Company Limited, Bangchak has undertaken various initiatives to address the challenges of the Energy Trilemma. This involves merging the benefits of businesses through synergy, enhancing production efficiency, reducing costs, ensuring the highest economic value, and developing a growth platform for continuous expansion. These efforts aim to enhance competitive capabilities, enable consumers to access energy at fair prices, and contribute to the sustainable development of both Thai society and the company. Detailed business plans and key objectives for 2024 have been outlined for each business group within Bangchak Group.

Refinery and Oil Trading Business Group Two world-class complex refineries aim to have a combined crude run at 266 KBD (a 72% increase from 155 KBD in 2023). Bangchak Phra Khanong Refinery, recognized as a world class refinery, has embarked on continuous operating costs improvement, with a sustained OPEX of approximately USD 1.3/BBL and achieving refinery operational energy efficiency within the 1st quartile. The refinery plans to extend the turnaround maintenance cycle from two to four years and explore and pilot a carbon capture technology project. Moreover, it aims to develop towards becoming a bio-refinery that produces 2nd Generation Biofuel which has drop-in properties equivalent to fossil fuels, starting with sustainable aviation fuel (SAF) as its inaugural product.

At the same time, the successes from the efficiency improvements in Bangchak Phra Khanong Refinery will be applied to Bangchak Sriracha Refinery. This effort will focus on efficiency improvements, competitive enhancements, and synergies. Bangchak Sriracha Refinery plans to achieve a crude run rate of 155 KBD in 2024, which will be its highest ever rate.

Bangchak’s Refinery and Oil Trading Business Group operates a comprehensive business within the value chain. The group engages in oil trading business through BCP Trading (BCPT) in Singapore, manages fuel transportation by road and sea, pipeline and logistics through Bangkok Fuel Pipeline and Logistics (BFPL), and the production of sustainable aviation fuel through BSGF. Most recently, it established Refinery Optimization and Synergy Enterprise (ROSE) to develop plans and manage the operations of the two refineries to enhance efficiency and reduce costs. These developments will foster continuous growth and sustainability for Bangchak.

Marketing Business Group aims to introduce products and services that transform Bangchak service stations into a Greenovative Destination for Intergenerations. The group plans to expand the service station network from 2,221 stations at the year of 2023 to more than 2,500 by 2030, including Unique Design service stations that are popular among consumers. The Marketing Business Group will present high-quality products such as Premium 97 and Premium Diesel, aiming to cater to customer demands by expanding its non-oil offerings. This includes opening 140 new Inthanin Coffee outlets each year, reaching 2,000 locations by 2030. Furthermore, it aims to increase brand diversity, expand the coverage of convenience stores and partner retail options in Bangchak service stations, and boost the market share of FURiO lubricants.

Moreover, the Marketing Business Group places importance on rebranding Bangchak at service stations to the 'New Leaf' emblem and smoothly merging two brands into the unified 'Bangchak' brand. The logo of 'Esso' has been transformed into 'Bangchak' with the concept 'Your Greenovative Destination for Intergeneration,' aiming to meet the needs of users of all age groups, by incorporating the principles of equity and physical accessibility comprehensively. All these changes are expected to be completed by June 2024."

BCPG Public Company Limited prioritizes the strengthening and growth of its Core Business, namely renewable energy, with the aim of doubling its production in Gigawatt hours by 2030. At the same time, it will also focus on New S Curve businesses such as energy storage systems for electric vehicles, green energy solutions for industrial and utility-scale users, and smart energy management.

BBGI Public Company Limited aims to increase 2024 sales by 40% from 2023 to 560 million liters, with focus on core business growth through network expansion, and high value product manufacturing growth through a business venture with Bangchak in sustainable aviation fuel (SAF) production. Furthermore, it plans to commercially develop the joint venture with US-based Fermbox Bio to establish a CDMO plant to produce industrial enzyme in phase 1, with an installed capacity of 200,000 liters in 2024, and to more than 1 million liters by 2027, and expanding into other health and well-being synbio products.

Natural Resources and New Businesses Group is committed to creating energy security by expanding upstream petroleum exploration and production (E&P) business and aims to achieve a 74% growth with a petroleum production capacity of 40,000 boepd (barrels of oil equivalent per day) in 2024, and up to 100,000 boepd by 2030 from oil fields in Norway through OKEA ASA. It will also scale-up through other high potential locations in other continents.

Bangchak has adopted a strategic plan until 2030 that ensures the growth of all five core business groups. This includes plans to develop new businesses that extend and diversify its existing portfolio to address future demand, namely, liquified natural gas, a clean bridging energy during this energy transition, and the EV-Bike platform business, which is transitioning to become a Battery as a Service (BaaS) platform for EV bikes. Moreover, Bangchak Initiative and Innovation Center (BiiC) focuses on exploring potential opportunities in climate technology, sustainable energy, and synthetic biology. Bangchak emphasizes the importance of maintaining financial discipline and procuring diverse and suitable sources of funding to ensure stability and growth.

“With our principles in conducting business over the years, Bangchak is committed to maintaining balance through the concept of “Greenovate to Regenerate” and basing its foundation on preserving a balance between profits and value. This approach extends to maintaining equilibrium amidst the challenges in the Energy Trilemma, aiming to transition towards a low-carbon society with the goal of achieving net zero greenhouse gas emissions by 2050. In addition, there is a commitment to maintaining balance as an organization that is rich in ethical responsibility towards the environment, society, and overseeing good business governance (ESG). With a stable foundation, coupled with strategic advantages and potentials across various business sectors, Bangchak is poised to facilitate growth into its 40th year in 2024 and beyond, fortified, and resilient, to create sustainability for both the company and the Thai society at large.” Chaiwat concluded.