Dear Valued Shareholders,
In 2016, the Company has witnessed tangible growth and expansion; from core business operations, acquisition of alliances to strengthen the business and the increasing number of products and services in the service stations by way of systematically and effectively integrating the Company's resources in order to deliver services that suit customers' needs in all geographical areas over Thailand, both in big cities and remote areas, for Thai people to use products and services that are of the same standard, according to the slogan "Wherever there are Thais, PT will reach out there to be the number one service provider in Thailand". Moreover, the Company will also be continuously improving its operations to achieve goals and to uplift the competitive edge, as well as lay foundation for sustainability in the future.
The Company's net profit in 2016 stood at 1,073 million Baht, accounting for 65% growth, which is considered the most outstanding operating performance so far. This is indicative of staff members' dedication and unity for having collaboratively driven consistent growth, despite the oil price scenario and challenging economic conditions. In this regard, crude oil price dropped by 26 USD/barrel at the beginning of 2016, while at the end of the year, it remained at around 54 USD/barrel. Also, domestic economic landscape is still making recovery at a rather slow pace.
During the end of 2016, the Company had increased the number of service stations in more than 625 districts all over Thailand, accounting for 67% of the total number of districts in the country. It is the Company's target to have 100% coverage and the Company has also secured business alliances with Fuel Pipeline Transportation (FPT) and AMA Marine in order to facilitate faster and more effective oil transportation. Furthermore, the Company also formed alliances with large corporations and engaged potential entrepreneurs to operate businesses in the services stations as part of the Company's community development project.
Besides, the Company intended to jointly invest in the renewable energy project together with alliances with essential expertise in coherence with the government's renewable energy development policy. Projects that are under construction are; Thailand's first integrated palm industry project, which is operated by PPP Green Complex Co., Ltd., and it is expected that the first production of biodiesel will be available for sales by 2017, and the other project is the world's first ethanol production plant from cassava pulp, operated by Innotech Green Energy Co., Ltd., with cooperation from the National Innovation Agency and the New Energy and Industrial Technology Development Organization (NEDO) of Japan by using new innovation to create value-added features to cassava pulp to produce alternative energy for Thai people in a sustainable way.
The Company abides by the principle of good governance in operating and managing the business, including anti-corruption mindset and active development of the society, community and environment. Speaking of which, the Company seeks to provide educational opportunities and employ local people in order to enhance the quality of lives of staff members and people in areas surrounding the service stations and distribution centers all over the country. The Company also emphasizes the importance of safety of the communities, as seen from the Outstanding Petroleum Transportation Award in the safety category from Oil Industry Environmental Safety Group Association. Also, the Company is determined to continuously develop the organization to be of the international standard in organizational management.
On behalf of the PTG Energy PCL's Board of Directors, I would like to express gratitude for your trust in our determination to generate growth for the business to meet with the promised target. This has enabled us to be selected among the ''SET50'' and selected by SET to receive honorable reward ''Best CEO Award" and ''Best Company Performance Award.'' The Company intends to continue expanding the integrated energy business in order to sustainably generate values in the future and to maintain the operating performance with strict adherence to the principle of good governance and social responsibility. It is our great honor to earn your trust in our willingness to elevate operational standards even further. Finally, I would like to extend gratitude towards the management team and all staff members for giving your best efforts, enabling the Company to make tangible progress. Also, I would like to thank valued shareholders, customers, business alliances, partners, financial institutions, government offices and all groups of stakeholders for giving us trust and support, which has earned us continuous success all along.
Pol. Gen. Soontorn Saikwan
Chairman of the Board of Directors