National oil and gas company PTT Plc is shifting its focus more towards electric vehicle (EV) charging services in response to the growing EV market in Thailand, while also considering adjustments to its other EV-related businesses, including electric car assembly.
This realignment of PTT’s EV strategy is part of a broader initiative to reassess both oil and non-oil businesses. PTT is exploring discussions with potential investors regarding the partial divestment of shares in PTT Global Chemical, Thai Oil, and IRPC—subsidiaries of PTT—to enhance its oil refinery and petrochemical operations, which are currently facing challenges due to the US-China trade war, according to Kongkrapan Intarajang, CEO and President of PTT.
In contrast, PTT’s EV charging business, operated by its subsidiary PTT Oil and Retail Business Plc (OR), is thriving and expanding. OR recently announced plans to increase its investment in the battery charging sector through its EV Station PluZ initiative.
The company aims to increase the number of charging outlets from 400 in July 2023 to 600 nationwide by 2024, with a long-term goal of reaching 7,000 by 2030.
Arun Plus, a wholly-owned subsidiary of PTT, manages EV charging stations under the “on-ion” brand to take advantage of the government’s push to promote the EV sector. The subsidiary also sells EV chargers and offers installation services for residential users.
Looking ahead, PTT intends to consolidate its charging business under a single brand, according to Mr. Kongkrapan.
Other EV-related initiatives, such as car assembly, battery manufacturing, and serving as a sales agent for the Chinese EV manufacturer Xpeng, are managed by PTT’s subsidiaries, many of which operate through joint ventures.
“We are reviewing the best directions for these businesses,” Mr. Kongkrapan stated.
Modifications to PTT’s non-oil and oil operations are part of the company’s strategy to realign business plans in light of rapid global market changes and increasing competition.
On Tuesday, PTT reported earnings of 1.6 trillion baht for the first half of 2024, marking a year-on-year increase of 4.5%. Net profit rose by 34%, reaching 64.4 billion baht, up from 47.9 billion baht during the same period last year.
PTT attributed its revenue growth primarily to higher global crude oil prices and gains from oil trading, despite a decline in gas and liquefied natural gas prices, reduced oil sales at petrol stations, and obligations to the government for regulating power bills.
Late last year, PTT levied a charge of 4.3 billion baht on a gas supplier for failing to meet contractual gas delivery requirements, known as a gas shortfall. This amount was transferred to the government in January, aiding in the management of power prices, which stood at 4.18 baht per unit from January to April this year.
