PTT focus on non-oil businesses to achieve accelerated growth
Thailand’s premiere oil and gas company announced it’s plans to focus on non-oil businesses to bolster the company’s growth.
According to an executive, PTT is expecting a better revenue report from its non-oil businesses. As much as 20% is expected to be added per year starting 2016 to 2020.
PTT is a Thai-state owned company which has operations in the Philippines, Thailand, Singapore, Mozambique, and Indonesia. While it’s main business is oil, the company is employing expansion efforts to participate in non-oil businesses. The company is currently aiming for a 50-50 partition for its oil and non-oil ventures. In other words, PTT wants to have an EBITDA (earnings before interest, tax, depreciation) that has 50% of its revenues from non-oil businesses by the year 2020.
The oil giant’s non-oil arm dabbles in coffee franchises and retail outlets. At the moment, PTT’s coffee shops run under the Cafe Amazon brand. The company also operates the Daddy Dough Brand and the Texas Chicken line of restaurants. For the first half of the year 2016, these non-oil ventures have posted a total of 153.5 billion baht EBITDA or $4.44 billion.
Coffee shops have the biggest part in the revenue report. Cafe Amazon has listed a 70 million cup sale for the first half. It aims to finish the year at 140 million cups which is 30 million cups more than 110 million cups it sold last year. PTT has also expressed its plan to expand in Cambodia and most of Southeast Asia.
Another venture of the company is budget hotels which they plan to implement as soon as possible. PTT has recently signed a deal with the airport department of the government for the joint development and management of retail space at passenger terminals.
The move to focus on this part of the company is fueled partly of the declining oil price that has hit oil companies the world over. The impact of the ongoing weaker oil price is being weathered by PTT through this efforts.