Bangchak Sriracha Refinery Plc (BSRC), a subsidiary of Bangchak Corporation, is taking a cautious approach to budget spending in light of a decline in the oil refinery sector in Chon Buri’s Sri Racha district. This facility, previously owned by Esso (Thailand), came under Bangchak’s management following the company’s acquisition of Esso Thailand in 2023, leading to the rebranding of the refinery.
“We need to be more judicious with our budget allocation, focusing solely on essential projects for BSRC, such as enhancing operational efficiency and optimizing costs,” stated Bundit Hansapaiboon, CEO of BSRC.
The company is gearing up to launch a new capital expenditure plan for the period from 2025 to 2030, aiming to boost refinery production and develop high value-added products. The combined operations of Bangchak and Esso yielded 4.4 billion baht in revenue during the first nine months of this year.
While the specific investment amount has not been disclosed, BSRC has announced an intention to allocate 3 billion baht in the first year, primarily for upgrading refinery machinery and managing oil trading.
“This outlines our definitive budget allocation strategy,” remarked Mattana Sutatham, BSRC’s Chief Financial Officer.
Additionally, the company has been renovating and rebranding 746 gas stations formerly operated by Esso. The project is nearly complete, with 95% finished and expected to operate under the Bangchak brand by the end of this year.
In the third quarter, BSRC reported a loss of 1.73 billion baht, largely due to a decline in oil stock value, as noted on the Stock Exchange of Thailand’s website. For the first nine months of the year, the company recorded a loss of 659 million baht.
Mr. Bundit anticipates that the profit margins for BSRC’s oil refinery operations in 2025 will remain consistent with this year’s levels, as demand for oil weakens among major consumers, particularly due to slowing economic growth in China.
Looking ahead, Bangchak plans to establish 100 new gas stations by 2025. In terms of non-oil ventures, the company aims to enhance customer engagement and expand its sales opportunities, targeting an increase in touchpoints from 400 by year-end to between 500 and 700 next year.
