What is the business model of the Company?
The core businesses of the Company and subsidiaries can be categorized into 8 businesses as follows:
1. Oil Business and Retail Business
- 1) Oil Business
The Company operates fuel oil trading business under PT service stations in 2 types which are Company Owned Outlet or "COCO Service Station" which is operated under Petroleum Thai Corporation Limited ("PTC"), a Company’s subsidiary, and petrol stations owned by the operator that has the right from the Company (Dealer Owned Dealer Operated or "DODO petrol stations"). The DODO gas stations shall buy oil from the Company and subsidiaries that are oil traders under Section 10. In this regard, the Company will provide advice and assistance to these oil distributors, such as station design, investment and management. The proportion of sales of gasoline and diesel in each service station will vary according to the needs of the target customers who are in the vicinity of each gas station.
- 2) Retail Business
In addition to selling fuel through service stations, PTC also invests in and operates convenience store business, PT Mart and Max Mart, at PT COCO and DODO petrol stations
2. LPG Business
The Company operates LPG sales business under Atlas Energy Company Limited (“ATL”) and Olympus Oil Company Limited (“OLP”), subsidiaries of the Company. OLP operates the LPG retail business under PT service stations which were owned and operated by the Company, or the so-called COCO stations. The Company aims to provide the quality service to the LPG automobile users in standard service stations
In the year 2020, the Company began to expand the LPG business for the household sector and industrial sectors under ATL's operations, with an aim to provide integrated LPG service customers. For this reason, the Company has added LPG filling plants and expanded LPG cylinder shops. The Company also plans to provide services to other regions across the country. However, PTG still keep selecting services that will connect the lifestyles of customers in every angle.
3. Renewable Energy Business
The company has invested in renewable energy business for to sustainability of energy use and to reduce the risk of petroleum energy shortage the future. In addition, investing in the renewable energy business is also supporting farmers who grow crops for the production of alternative energy such as palm oil, sugarcane and cassava and also supporting government policies. The Company has invested in a variety of alternative energy including biodiesel business, ethanol business, and waste-to-energy business.
Currently, the Company has started production and distribution of biodiesel energy. This business is a joint venture with Tha Chang Green Energy Co., Ltd. and RD Kaset Pattana Co., Ltd., which operates in the production and distribution of palm oil products. The plant is a comprehensive palm oil project, beginning with participation in the development of quality palm oil products for farmers and the palm oil production process, which includes palm oil mill plant, palm oil refinery, biodiesel plant, olein-oil plant, biomass power plant and biogas power plant. There is also a fuel tank with a total capacity of approximately 120 million liters for efficient inventory management.
This plant has a capacity of 0.52 million liters per day of biodiesel B1001/ and 0.20 million liters of olein oil2/ per day. The biodiesel B100 will be blended in diesel fuel in proportion to the policies of the government. In this regard, the amount of biodiesel B100 usage that the Company used in the year 2020 was 0.90 – 1.00 million liters per day. Therefore, the Company plans to increase the production capacity of the factory to meet the increasing demand for biodiesel B100 according to the expansion of the Company’s oil sales volume.
4. Logistics and Warehouse Business
The Company and subsidiaries had registered as a fuel transporter under Section 12 of the Fuel Trade Act of 2000, and invests in a large tanker truck fleet of its own. These truck fleets are responsible for distributing fuel products to COCO stations, wholesalers, and for managing the inventories internally. The size of the fleet has been growing correspondingly with the growth in fuel sales revenues and the increasing number of PT petrol stations over the past period.
5. System and Equipment Management Business
The Company operates petrol station business, LPG-auto station business, and retail food and beverage businesses which most of the branches of these businesses are located in the service stations of the Company. The Company therefore emphasizes on the work system that will be able to respond to the customers comprehensively, and promptly according to the needs of the customers. For this reason, the Company has invested in a joint venture with Mr. Woottichai Preeputtarat to establish Innoligent Automation Company Limited or INA to develop equipment and communication tools for analyze customer data from services within the station. This will help the Company to increase the efficiency of the service station and to manage the service station more accurate. In addition, the system helps improve data processing in order to be more responsive to customer needs.
6. Food and Beverages Business
The Company invests in operating food and beverage business under 2 main brands namely:
- Punthai Coffee is focused on the quality of 100% Arabica coffee with aromatic flavor and good service. The coffee shops are mainly located in the PT petrol station to serve commuters and car drivers. Punthai Coffee also opens to outside PT station, such as Don Mueang International Airport, department stores (second-tier department store) and large retailers (Hypermarket).
- Coffee World is a brand managed by GFA Corporation (Thailand) Co., Ltd. ("GFA"), a subsidiary of Punthai Coffee Co., Ltd. The brand focuses on the quality of coffee, full favored coffee, and suite with the city lifestyle. Coffee World shops are available in potential areas outside the PT service station in both inside and outside of Thailand, such as leading department stores, community malls, and airports. Apart from Coffee World, GFA operates premium ice-scream shop named “Cream & Fudge”, deli shop named “New York 5th Av. Deli”, variety of high quality sandwich is served, and a well-known rice dish Thai restaurant among foreigner named “Thai Chef Express”.
7. Auto Care Services Business
With the goal of becoming the country's leading integrated energy business, the Company emphasizes on providing extensive service in service stations. Consequently, the Company has jointly invested with Autobacs Seven Company Limited to operate a quality and comprehensive maintenance center from Japan under the AUTOBACS brand in order to provide full-service to passenger cars. AUTOBACS is available inside and outside the PT service station.
8. Electronic Money Business
The business of providing electronic money or e-Money, the Company has established Max Card Co., Ltd. and Max Solution Service Co., Ltd. with the objective of enhancing the potential of electronic financial system. through the PT Max Rewards application developed to provide services for members and customers under the supervision of the Company through PT Max Card on a digital platform. The platform combines various benefits by collecting points through the use of products and services. The offered benefits including food and beverage, shopping and traveling. Customers also exchange points between partners for more than 100 participating stores.
The Company commits to develop electronic money service system via PT Max Card and PT Max Rewards application as an online and offline (O2O) connection. The aim is to be the leader in electronic money service system among energy companies in responding to the needs of the digital society.
What is the management method of PT gas stations?
There are 2 types of PT gas stations as follows.
- A gas station owned and operated by the Company (Company Owned Company Operated: COCO)
- A gas station owned by an operator who is authorized to use PT trademark (Dealer Owned Dealer Operated: DODO) in which the Company and its subsidiaries are the fuel supplier to the Company's distributor in such area
The Company will mainly focus on the expansion of COCO by renting spaces (Light Asset Strategy) with the average rental period of 15 years.
How PTG position itself it the future?
In the future, we planned to be the leader of Thailand’s service innovation provider. Under the concept of Co-creation, we are trying to create new innovations for business operations and services by combining technological knowledge with our business processes. Without limiting ourselves to be just an energy provider, we aim to increase operational efficiency through product innovation, process innovation, and service innovation in order to achieve the target of being Thai people’s first-in-mind product and service in every stage of lives
The Company has the business plan for 3 - 5 years with the aim to create PTG Eco-system through PT Max Card, which is divided into 3 main areas:
- Expansion of oil business – the Company aims to have service stations nationwide with the target of becoming the first service station in customers’ minds.
- Expansion of non-oil business (“Non-oil”) – this is to fulfill the entire needs of customer and more. The Company will select new business investments that can support its future growth
- Expansion into renewable energy – this is to create the business sustainability as well as benefits to communities and societies by supporting agricultural products which is the foundation of the country's economy in accordance with the government policies.
What are the strengths that make the Company different?
- The Company mainly focuses on expansion of COCO (Company Owned Company Operated) stations by renting service stations from landlords (Light Asset Strategy) which induces the rapid expansions of service stations to cover all areas. The rental contract period is 15 years in average.
- The Company has its own supply chain system; therefore, transportation cost can be well controlled. In addition, the Company has oil depots all over the country that can also be its distribution centers.
- PT Max Card is membership card coupled with the privileges of purchasing products and services of the Company and its alliances, including oil and LPG stations, restaurants, Max Mart convenience stores, Pro Truck repair and maintenance service centers, and Autobacs auto repair and maintenance service center. Customers can also collect points and redeem for discounts and rewards.
What is the PT Max Card and its privileges?
It is the membership card to collect and redeem points from purchasing products and services of the Company and its alliances, including oil and LPG stations, restaurants, Max Mart convenience stores, Pro Truck repair and maintenance service centers, Autobacs auto repair and maintenance service center, and other products and services to be purchased in the future.
Customers can redeem collected points for special privileges such as discounts for filling fuel at PT service stations and other rewards. In addition, the Company continues focusing on the improvement of efficiency and benefits to customers so that PT Max Card will response to their further needs. Currently, customers can follow, update points and redeem for rewards through Application Max Rewards which can be downloaded for both smartphones and tablets as well as both iOS and Android. For more reward details, please visit www.ptmaxcard.com
What is the Company’s dividend payout policy?
The Company has the dividend payout policy to shareholders at the rate of not less than 30% of the Company’s net profit after tax, legal reserve and other reserves (if any). However, it can also be changed depending on operating performance, financial position, liquidity, needs for working capital, investment plans and future business expansions, market conditions, suitability, and other factors relating to the Company’s operations and management. In the year 2016 and 2017, the Company paid dividends for 87% and 41% of the net profit of the separate financial statements, respectively. For more details, please visit http://investor.ptgenergy.co.th/en/shareholder-information/dividend-information
What is Marketing Margin?
It is the difference between the retail oil price after VAT (Output tax) at a service station and the purchased oil price after the VAT (Input tax) that the Company purchases from the oil refinery. The relationship between the purchased oil price and the Company’s marketing margin is as follows.
Remarks: The value added tax (1) included in the purchased oil price that the Company purchases from the refinery is the tax that the Company is entitled to refund from the Revenue Department, called "Input tax", and the value added tax (2) included in the retail oil price is the tax that the company is required to remit to the Revenue Department, called "Output tax". The details can be checked at the website of the Energy Policy and Planning Office. Ministry of Energy (http://www.eppo.go.th/index.php/th/petroleum/price/structure-oil-price?orders[publishUp]=publishUp&issearch=1)