Q: Can you give us an overview of BCP's performance in the previous year (2017)?
A: As for the Refinery Business, it was utilized at high levels throughout the year, especially in March where BCP managed an average of 121.6 KBD, a new record for the Refinery Business. As for the Cogeneration Power Plant which completed its construction, it contributed to the reduction of infrastructure cost and firmly cemented electrical current stability as a Self-sufficient Power Generation unit, and reduced pollution emission; it uses Natural Gas as fuel for producing electricity.
The Marketing Business’s 2017 shares was at 15.4%, Net Promoter Score for BCP service station continued to increase from 2015. The 2017 score was close to the market leader, while throughput per station, for standard size service station, not including Co-Op stations, is higher than the industry’s average.
BCPG’s Power Plant Business, in which BCP holds 70% shares, the decision to list BCPG in to SET is an act of Value Creation for BCP. The initial investment BCP made was approximately in the range of ten billion THB. Currently, BCPG market value is approximately fifty billion THB at its market price of 25.75 THB per share.
The Bio-Based Product Business in the previous year saw BCP’s subsidiary, BBH amalgamated with KSLGI, which itself a subsidiary of the Khon Kaen Sugar Industry PCL, to establish BBGI on the 31st of October, 2017, to become one of the largest domestic producer of Bio-based products, Bio-based business has production of Biodiesel around 800 to 900 KLD, and produces 800 KLD of Ethanol from both Molasses and Cassava; the product having been produce from the two aforementioned raw material has alleviated pressure from production cost risk management.
The Natural Resources Business saw BCP furthering investing in the Lithium Business increasing held shares to 16.1%. As the moment, the Cauchari-Olaroz project in Argentina is in the process of designing the method of excavation to extract brine, which according to plan will be completed in early 2020. As for the Exploration and Production Business moved headquarters to Bangkok.
BCP established the Bangchak Initiative and Innovation Center (BIIC) meant to carry out research and development, it was officially unveiled in September 2017.
Q: Can you tell us about social and environmental awareness activities from the previous year?
A: BCP still continues to give precedents to CSR activities i.e. the company further improved upon the foundations laid by its dry rice complimentary gift promotion by changing to brown rice and value adding processes. In May 2017, the company established the Bai Mai Pun Sook Institute in the pursuit of environmental relief and improving the quality of life in communities, with various successive activities i.e. purchase of used vegetable oil, Thailand Go Green, and holding the 2017 International CSR Summit.
Q: What plans does BCP have for 2018?
A: The Refinery will undergo a Turnaround Maintenance (TAM), which will begin in late April continuing to middle of June, a total of 45 days, there is a two year interval between TAMs. As for increasing production of the CCR unit from the 3E program mandate, the contractor will begin construction within 2018, the plan estimates that construction will be completed by 2020. Implementation of Debottlenecking will commence the former has begun in 2018. Once all the construction wraps up, the refinery is expected to be able to produce 133 to 140 KBD, however production volume is subjected to market conditions
The Marketing Business will focus on the Green Eco-system with Digitalization. The Green Eco-system within service stations revolves around Green Products, and recently the company premiered its new lubricant engine oil product, “Furio”. The Greenovative Experience will rely on the application of Digitalization. As for business expansion into CLMV countries, the Inthanin Coffee Business has made its debut, as for service stations, BCP is exploring different opportunities and possibilities for expansion.
The Growth Engine and Platform will further and support BCPG and BBGI. BCP is intent on expanding its businesses and could possibly choose areas within the EEC; this new frontier connects the Northeast to the East of Thailand, while connecting to Thailand’s border countries; Cambodia and Laos PDR., with emphasis on Bio-based product.
Another crucial point that we give importance to is our personnel, which can be divided in to the following: 1. People, BCP would manage courses and develop human capital, with contributions from HR’s applied Digitalization, 2. Process, adjustments are made to methods and processes for various functions to increase efficiency, and 3. Technological support for IT innovations.
Finally, it is the community and the environment. BCP has endorsed products from various communities by putting them on retail shelves at SPARs, these goods have also been exported through SPAR’s network as well.
Q: What are BCP’s targets for sustainability?
A: The refinery aims to have its Energy Intensity Index below 90 and lower water usage, while possibly within the following 10 years that BCP would become a Carbon Neutral Company. The Marketing Business intends to establish standards for Green Service Stations’ Green Eco-system to be environmentally friendly, culminating as a leader in renewable energies. As for the social aspect, BCP has found jobs for people with handicaps at BCP, accepting them as permanent employees, with a goal of 1% of overall personnel roster. As for community work, it is not merely just about distribution of funds, BCP aims to improve the quality of life for people in the communities, i.e. helping improve literacy and providing opportunities for higher education to those in need.
Q: How has BCP set up its investments for the future, along with performance goals?
BCP and its subsidiaries has set an investment budget for the proceeding 5 years from 2018 to 2022 at THB 113,000 million, this amount encompasses investments in BCPG and BBGI, the two companies’ investments amount to 33% and 18% of total investments, respectively. While BCP will have half of the funds invested to it, attributing 20% to the refinery, 11% to marketing, and the remaining 18% will be distributed according to the chart below.
Performance growth will see increase in average cumulative growth per annum to 14% between 2016 and 2022. As can be seen in 2016’s EBITDA that the refinery contributed to half of the total sum, however in 2022 will lower to one third of the total with contributions from other businesses increasing and seeing profit coming in from various different sources.