The year 2023 was a key milestone in terms of the business environment and the change in the shareholding structure of Bangchak Sriracha Public Company Limited, which are critical to the Company’s operations. ExxonMobil Asia Holdings PTE Limited, the major shareholder, signed a share purchase agreement with Bangchak Corporation Public Company Limited on 11 January 2023, for all shares held by ExxonMobil. The sales transaction was completed on 31 August 2023, with Bangchak Corporation Public Company Limited subsequently making a mandatory tender offer to purchase shares of Esso (Thailand) Public Company Limited from the remaining shareholders. This transaction was successfully concluded on 17 October 2023 and Bangchak Corporation Public Company Limited became the largest shareholder of the company, holding 76.3% shares, and the Company became a subsidiary within the Bangchak Group.
The Company started using the name “Bangchak Sriracha Public Company Limited” and the Company’s stock symbol that were approved by the Extraordinary General Meeting of Shareholders No. 1/2023 of Esso (Thailand) Public Company Limited, held on 14 November 2023. This marked the beginning of a new journey for Bangchak Sriracha, as it embarked on commitments in line with the direction of Bangchak Group’s business development plan. The Company aims to meet the challenges of maintaining energy balance alongside sustainable business operations, and upholding responsibility to our stakeholders.
Our notable successes in 2023 include:
In 2023, the Company achieved a strong operational result, even amidst Thailand’s modest economic growth of 1.9% and the prevailing challenges in the business environment. The Company recorded a profit of 2,142 million Baht.
The refinery business maintained an excellent safety performance, with Bangchak Sriracha refinery operating without any oil spill incident within the reporting criteria for 16 consecutive years. The Company undertook installations and connections of new equipment to upgrade the refining process to meet Euro 5 standards and enhance production units. Following the completion of October turnaround maintenance, Bangchak Sriracha refinery has been producing low-sulfur fuel in accordance with Euro 5 standards since 1 December 2023.
In addition, in 2023, Bangchak Sriracha refinery received the crude oil tanker “Nordic Pollux,” a Suezmax-class vessel with a capacity of 180,000 tons. This marked the first time the refinery accommodated such large vessel type, enhancing its capability to support increased production capacity. This move reflects the efficiency and business synergy within the refinery and oil trading businesses of Bangchak Corporation which also contributed to cost savings in crude oil transportation through economies of scale. Furthermore, Bangchak Corporation and Bangchak Sriracha jointly established a new company named “Refinery Optimization and Synergy Enterprise Company Limited (ROSE).” ROSE’s objective is to develop business plans to maximize the benefits for the refinery businesses of both companies in the long run. It has also been successful in adjusting the oil transportation zone (Rezoning) via pipelines, trucks, and barges in various regions to be more effective. This is a result of strategic and synergetic cooperation to reduce terminal management costs and increase the efficiency of sustainable joint transportation. The optimization activities, including product and component transfers between two refineries, such as Jet and fuel oil components, have already started.
In addition to uplifting the potentials of the refinery, marketing businesses continues to focus on delivering high-quality products along with the best customer service. By the end of 2023, the Company had a network of 830 service stations. From October 2023, the Company commenced the logo change of its service stations to the “Bangchak” logo, and has successfully completed the transition for 268 stations by the end of 2023. The remaining stations, which are owned by dealers, are expected to complete the logo change by 2024. Concurrently, the Company has forged collaborations with existing and new alliances to expand the range of retail shops and services available to customers of the Company’s service stations.
In 2023, the Company successfully increased the sales volume of premium products and commercial sales through high-margin channels. This includes fuel oil products for the marine industry and gasoline for neighboring countries in the region. Additionally, the Company expanded to serve customers in the aviation sector, including domestic airlines and private jets, which enhanced flexibility and potential sales in this industry in the future.
These successful business outcomes are attributed to the power of collaboration and trust from all stakeholders. On behalf of the Company, I would like to express gratitude to all shareholders, business partners, customers, and all involved parties who have supported our business throughout the years. The dedicated efforts of executives and employees played key roles in driving the Company to success even during significant changes in the shareholding structure and other transitions in 2023.
Looking ahead in 2024, the Company will continue our commitment to conducting our business sustainably and responsibly. The Company will support the community, develop quality products and services, and work towards a low-carbon future through innovation and agility in our operations. With confidence, the Company will leverage strengths within the Bangchak Group, fostering synergy that enhances the Company’s potential to capture new business opportunities and embark on a new era of sustainable success under the new vision: “Shaping sustainable future with premier energy through innovative solutions”.
