Bangchak Corporation Public Company Limited has every reason to celebrate as it marks its 40th anniversary in the first half of 2024, stepping confidently into its fifth decade. This milestone year echoes the company’s journey marked by synergy, transformation, and growth. With a strategic vision clear as crystal, Bangchak focuses on excelling within its group, improving efficiency, driving continuous business expansion, and maintaining strict financial discipline. The target is set: an EBITDA of THB 100 billion by 2030, reaffirming Bangchak’s leadership in Thailand’s energy sector and creating a robust foundation for sustainable growth.
Chaiwat Kovavisarach, Group Chief Executive Officer and President of Bangchak Corporation Public Company Limited, along with his team of executives, revealed that the first half of 2024 showcased the group’s resilience and adaptability amidst a challenging market landscape. With a clear vision and efficient management, Bangchak achieved stable and sustainable growth, proving its mettle once again.
The introduction of the “new leaf” logo mirrors Bangchak’s ethos as a modern and environmentally conscious energy leader, winning favor with both customers and society. This fresh identity has not only boosted sales volume at service stations but also cemented customer trust in the Bangchak brand and the top-notch quality of its offerings. Looking ahead, Bangchak is set to commence the production of Sustainable Aviation Fuel (SAF) in 2025, a game-changer for both the company and the country. SAF, a sustainable alternative for the aviation sector, will pave the way for a greener future, underscoring Bangchak’s commitment to sustainable fuel development through its ambitious Bangchak 100x strategy.
The company’s unwavering commitment to balancing energy security, affordability, and environmental sustainability stands tall. They aim to achieve net-zero greenhouse gas emissions by 2050 with strategic business expansion plans, including:
Refinery and Oil Trading Business, and Related Businesses: Bangchak aims to maximize synergy between its Phra Khanong and Sriracha refineries, aiming for a crude run of 280,000 barrels per day in 2025. By streamlining operations and reducing costs, Bangchak plans to enhance its Gross Refinery Margin (GRM) and introduce high-value products like Unconverted Oil and Slurry. Notably, Bangchak’s initiation into SAF production with a capacity of 7,000 barrels per day positions it as a leader in the specialty products refinery market, all while embracing sustainability.
Excellence in Marketing Business: The “Greenovative Destination” concept will see Bangchak expand to over 2,400 service stations by 2030, capturing a 33% market share. The company’s plans include a foray into commercial markets in Cambodia, Laos, and Vietnam, while enhancing customer experiences and strengthening the brand image through innovative services like Inthanin Coffee and electric vehicle charging stations.
Sustainable Growth through Greenovation: Bangchak Group is spearheading green energy through BCPG Public Company Limited, eyeing a spot among the SET50 index stocks by 2030 and DJSI index as a sustainable stock. Their strategy includes expanding green energy investments, efficient capital recycling, and steadfast financial discipline to achieve higher returns and carbon neutrality. BBGI Public Company Limited, a biofuel production leader, aims to be ASEAN’s first Contract Development and Manufacturing Organisation (CDMO) by 2025, producing over 1 million liters annually by 2028.
Enhancing Energy Security through Petroleum Exploration and Production: Having laid a solid foundation by investing in Norway’s OKEA ASA in 2018, Bangchak Group is set to augment its petroleum exploration and production. With ambitions to reach a production capacity of 50,000 barrels per day by 2030 and acquire new E&P assets in the Asia-Pacific region, Bangchak is on a path to secure energy sustainably.
Platform for Growth and Financial Stability: Bangchak is cultivating a growth platform that supports sustainable business expansion, competitiveness, and energy trifecta – security, affordability, and environmental sustainability. They plan to invest THB 120 billion between 2025 and 2030 to achieve an EBITDA of THB 100 billion. The group’s solid market fundamentals, efficiency improvements, and diversified business pursuits ensure a balanced and robust portfolio, with an ‘A’ credit rating from TRIS Rating reflecting their strong ROA and ROE.
Way Forward for Growth: The group’s long-term expansion thrives on new ventures and low-carbon technologies, sustainable fuels, and green energy solutions. Embracing digital systems and AI, Bangchak adapts to global changes, aiming to maximize long-term stakeholder benefits.
Bangchak Group’s commitment to a greener world is encapsulated in its vision of “Crafting a Sustainable World with Evolving Greenovation.” Targeting Carbon Neutrality by 2030 and Net Zero GHG Emissions by 2050, Bangchak remains steadfast in its mission for continuous growth, aiming for an EBITDA of THB 100 billion by 2030. By ensuring energy security for Thailand and the region, Bangchak not only maximizes stakeholder benefits but also champions sustainable development for future generations.
This is a monumental achievement for Bangchak! Their vision for a sustainable future is inspiring.
I agree! It’s refreshing to see a corporation with a clear commitment to sustainability.
But are these promises actually going to be kept? Many companies love to greenwash.
Bangchak’s commitment to green energy is commendable, but I’m curious how they plan to balance profitability with environmental goals.
If they achieve carbon neutrality by 2030, it would be a great success. However, it sounds too ambitious.
Ambitious, yes, but not impossible. Remember how Tesla was doubted initially?
Bangchak’s new SAF production is a game-changer for the aviation industry! Can’t wait to see the impact.
It’s about time the aviation industry had a sustainable alternative! Hope others will follow suit.
I’m skeptical about the sincerity of these corporate sustainability claims. Companies often prioritize profits over the planet.
True, but Bangchak’s detailed plan makes me hopeful. At least they’re putting these goals on the table.
I’ll believe it when I see tangible results.
The introduction of Inthanin Coffee and EV charging stations at their service stations is genius! A win for both convenience and the environment.
Such plans require a significant financial investment. I wonder if it’ll be economically sustainable in the long run.
Considering their THB 120 billion investment plan, it seems they’re prepared for the long haul.
Let’s hope the returns justify the investment and it’s not just a PR stunt.
Expanding into Cambodia, Laos, and Vietnam will be challenging but can open up huge markets for Bangchak.
True, regional expansion is crucial for growth, but they must be culturally sensitive.
How exactly does AI help in achieving sustainability goals? Sounds like a buzzword to me.
AI can optimize operations, reduce energy waste, and predict environmental impacts. It’s more than just a buzzword.
I think the balance between energy security and environmental sustainability is critical. They seem well-positioned for both.
That balance is tricky. Often one gets sacrificed for the other.
Agreed, but companies have to innovate and find a way to achieve both.
Bangchak aiming for net-zero by 2050 is ambitious but essential. Climate change won’t wait for corporate timelines.
So what’s next for Bangchak after 2030? They seem to have a good plan for now, but long-term vision is critical.
It’d be interesting to see them pioneer more in green tech and possibly create new industry standards.
Focusing on both SA F production and petrochemical expansion seems contradictory.
True, it’s like hedging bets. They need to commit fully to renewable for credibility.
Bangchak’s goals are impressive but risky. The global market is volatile, and these investments could backfire.
High risks often come with high rewards. If they play their cards right, it could be a groundbreaking success.
True, but they must mitigate risks effectively or it could all go south quickly.
Their efforts to influence Southeast Asia could make them a regional powerhouse in energy. Interesting to watch.
Corporations should emulate Bangchak’s comprehensive approach to sustainability. It’s the future of business.
All these plans sound great on paper, but it’s the execution that matters most.