PT Energy Plc (PTG), the operator of PT petrol service stations, is to invest about 1 billion baht next year to expand its retail network with an aim to boost revenue by 30% to 52 billion baht
President and chief executive Pitak Ratchakitprakarn said most of the money will be spent to open 130 service stations on top of its existing 570. The remainder will be used to increase its number of fuel dispsenser to 300 from 243.
PTG is ranked third with Shell in terms of the number of service stations. Energy flagship PTT Plc owns 1,300 sites and majority-state-owned Bangchak Petroleum Plc has 1,100.
PTG this week opened a pilot petrol station covering nearly six rai in Ayutthaya that includes all kinds of non-oil services such as convenience and coffee stores. The company plans to spend 400 to 800 million baht to open 20 more large stations next year. Another 100-110 sites will be used for standard-sized stations.
Mr Pitak said the network would be expanded mainly outside Greater Bangkok, where the market is becoming mature and land prices are expensive. "We will focus on large cities in the Central and Northeast regions where the local economy is growing sharply," he said.
PTG expects its monthly fuel sales to reach 160,000 litres per site by the end of this month, up from 144,000 litres last year. Sales at the large station are expected to be 250,000 litres this month and to rise to 600,000 litres by April.
PTG aims to increase its market share to 6.5% in 2013 from 5% this year, thanks to aggressive expansion. Sales volume is forecast to grow 40% to 1,890 million litres next year from 1,350 million litres. Sales revenue is projected at 40 billion baht this year.
PTG has postponed its listing on the Stock Exchange of Thailand from this quarter to early next year. "Since we have invested to expand our retail oil business and logistics network, we need time for investors to see what we have done in the past several years before listing," said Mr Pitak.