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Chairman of the Board of Directors
2018 was the year that we have seen volatility in the oil price, international trade uncertainty, and fragility in the domestic grassroots economy, which have impacted the overall economic condition in Thailand. PTG has foreseen and handled this challenge by undergoing a strategic review, focusing on increasing the effectiveness of available assets, improvement of internal work processes, as well as creating points of differentiation on products and services based on customers’ needs. Therefore, the Company is able to maintain its competitive edge, generate returns and create values for shareholders over the long run, with adherence to the principle of good governance.
Though the external factors have not been supportive of the business growth, PTG has been able to reach number 2 in oil sales volume and maintain the number one position in sales growth rate, with 16% increase in sales volume from the previous year as targeted, and higher market share via all channels of 12% and via retail channels in service stations of 14.5%. Moreover, we have seen positive responses from customers in Bangkok and vicinity, which are high consumption areas of 24%, compared to consumption rate in service stations elsewhere in the country. However, with high oil price volatility, increasing from 65 USD per barrel to 76 USD per barrel, the government proceeded to freeze diesel price in June 2018, coupled with higher expenses from rapid business expansion.
This incident has reiterated the Company’s determination in strengthening the non-oil business (inclusive of convenient stores, food and beverage, service and maintenance center, and profit shares from other investment) in order to increase revenue and generate consistent cash flow. PTG sees the opportunities for growth in this business group and will still maintain the target to increase profit from the non-oil business, while the current proportion of gross profit from the non-oil business has increased from 10% to 8% YoY.
The Board of Directors and myself take great pride in being nominated for several awards and recognitions, reflecting the results of our determination to operate the business under the corporate culture ‘PTG Way’ that represents our attention to customers, teamwork, integrity and ethic, and continuous improvement. This year is the second consecutive year that PTG has been assessed Five Stars (Excellent) for the corporate governance rating, and received the trophy of honor for outstanding moral and ethical performance for 2018. The Company also got certified to be a member of the Thai Private Sector Collective Action Coalition Against Corruption (CAC).
This year also marks the first year that the Company received gold and silver medals from Thailand Kaizen Awards 2018 and Excellent Innovation Organization Award 2018 from the National Innovation Agency, reflecting the vision in driving the organization for continuous improvement and development.
Furthermore, another pride is our being selected to be Thailand Sustainability Investment (THSI) or Sustainable Stocks, hosted by the Stock Exchange of Thailand. This is the Company’s intention to improve towards sustainability and to operate the business with ethics and responsibility towards stakeholders, society and the environment.
2019 is going to be another exciting year and I would like shareholders to stay updated with our activities. Apart from expanding our service territory in Bangkok and vicinity to be more inclusive, PTG is also looking to expand collaboration with strong business alliances to enhance the quality of products and services, focusing on convenience and fulfilling customers’ needs in every angle. The Board of Directors emphasizing and supervising strategies and operations to be in line with the goal of retaining customers as the center to focus on building PTG Eco-System in the future. Moreover, PTG will capitalize efforts on increasing the profitability structure of the non-oil business based on the Company’s target, while exercising effective cost management on a continuous basis to sustainably increase organizational values.
With our determination to deliver differentiated services, PTG therefore created an exclusive training system to allow us to deliver services that satisfy customers’ needs. I hereby invite shareholders and investors who have tried our services at service stations and non-oil businesses under PTG Energy Group to send in suggestions for improvement, so that we can deliver products and services that better suit the needs of customers. Suggesti ons can be submitted to the Investor Relations Department at 02-168-3377 ext. 260 or 274 or via LINE ID: @PTGIR. My team and I would like to extend our gratitude for your suggestions in advance.
In this regard, the Company will not be able move forward with stability and sustainability without the determination and devotion of all staff members. Myself, on behalf of the Board of Directors, would like to thank the management team and all staff members for their enthusiasm, hard work, and willingness to adjust in times of change in order to become an active organization and to be the advanced organization that achieves target on a tangible manner. I also extend my gratitude to shareholders, customers, alliances, suppliers, financial institutes, government institutes and all stakeholders for enabling PTG’ continuous growth. We hereby commit that the Board of Directors, executives and staff members will exercise the best knowledge and experiences in performing duties to the best of our capacity, with care and professionalism, with the objective of increasing organizational values, together with improving sustainable growth for the Thai society.