2019 was a challenging year for Bangchak's business operations, due to global oil price fluctuations and the oil business’s downward trajectory following a slowing global economy. As a result, the performance of the entire refinery industry has contracted since 2018, continuing through 2019.
With our 3S Business Strategy (Security, Stability, Sustainability) and 4G Sustainability Strategy (Green Business, Green Production, Greenovative Experience, Green Society), the company has overcome these business hardships. Though Bangchak Group’s performance in terms of revenue and net profit decreased, the Marketing Business Group had a 7 percent increase in oil sales volume in the retail market, and the company’s cumulative market share of 2019 was 16 percent. Green Power Business had a 24 percent increase in total electricity sales volume. Bio-Based Products Business had an increase in B100 and ethanol production. An associated company under the Natural Resources Business, OKEA ASA’s production and sales were nearly as planned, and it had an Initial Public Offering (IPO) becoming a listed company on the Norwegian Stock Exchange.
1. Green Business:
Creating value sustainably and responsibly for the company by investing in the green power business. These are environmentally-friendly businesses and are prepared to face the Mega Trends that may occur in the future. These companies aim to be low carbon emission companies.
2. Green Production:
focuses on raising operational levels in an environmentally friendly and safe way by using resources efficiently - especially water and energy resources. The Refinery reached an average crude run at a historically high rate of 123.5 KBD in September. Bangchak was the first company in Thailand to have received an ISO 50001:2018 certification, reflecting its commitment to building an energy management capacity to international standards. The company has managed and invested in energy conservation under the Rocket Project, exceeding target decreases in energy consumption in production units. Energy Intensity Index also surpassed the target. Additionally, an Enclosed Ground Flare project, an environmentally friendly, modern green refinery concept caring for the environment around the refinery, is expected to be completed in early 2020.
For water resources, Six Bangchak products earned certification for their water footprints through the Water Footprint of Products Program. Bangchak was the first oil refinery in Thailand to have been certified by the program for its efficient and cost-reducing water management process. The company continues to reduce water usage and wastewater generation; in 2019 the Refinery reduced water use by up to 31% of total water use.
3. Greenovative Experience:
Focuses on creating green experiences and innovations. The Bangchak Greenovative Experience supports the modern Thai way of life, where everyone can live sustainably. These include:
4. Green Society:
The company has hosted an annual environmental seminar to share knowledge about innovation and technology that can change and support climate change problems. In the year 2019, we hosted the "Synthetic Biology: World-Changing Science" Forum, including an exhibition on information and products from the SynBio Innovation. Bringing innovation to Living Organisms is the integration of knowledge in biology, technology, and engineering, combined to solve global resource problems and develop new products, reduce the use of raw materials from natural resources, reduce production process, reduce waste, reduce environmental impact, and reduce the cost of production. It is a Disruptive Technology, essentially a tool for designing a sustainable future. The company announced the establishment of the SynBio Academy with public and private partners, both local and from abroad, aiming to support the development of bio-innovation businesses in Thailand through training, meetings, and data sharing.
The company considers the sustainable use of natural resources worthwhile. Therefore innovations have been adopted, per circular economy guidelines, to reduce plastic waste in our Bangchak Group’s business. We have invited Thai people to join the project - "Reduce source waste with Bangchak" - by campaigning for customers to bring their personal cups to Inthanin Coffee Shops. Other changes include using plastic packaging made from biodegradable products, replacing cup lids with a drinking lid – that doesn’t require straws - that could replace more than 60 million ordinary plastic cups to biodegradable cups.
Another ongoing project is "Cups for Seedlings" in which the company has collaborated with the Royal Forest Department, to recycle used Inthanin biodegradable cups to grow saplings, instead of plastic seedling bags.
The company also has invited customers to bring in used PET bottles to join the "Rak Pansuk" project organized with business partners. The used PET bottles are recycled into fibers and used to produce shirts, bags, and hats for public use. The company has delivered more than 600,000 used PET bottles for recycling, intending to reduce a minimum of 10 million bottles per year. The company also has the "Greenovative Lube Packaging" project, where used gallon containers for Bangchak lubricants are processed into post-consumer recycled resin (PCR) and then utilized as a raw material in the manufacturing of quality recycled gallon containers. The Greenovative Lube Packaging Project not only makes use of alternative materials but also reduces the amount of waste and the negative environmental impacts created by improper disposal of these containers – in line with the concept of the circular economy. The company has set a target of at least a 1 million gallon container reduction in waste per year.
On the occasion that Bangchak is entering the 36th year of business operations, we continue to strive to be a leading green energy company in the region, using innovating in an environmentally and socially sustainable way. Our 2019 performance in three dimensions - economy, society, and environment - will ensure that our 3S Business Strategy and 4G Sustainability Strategy can lead the company to environmentally and socially sustainable business development, a good return for shareholders, and value creation for our stakeholders. This is the DNA of Bangchak people.