Bangchak to invest up to Bt4 billion in non-oil business

       Bangchak Petroleum plans to invest Bt3 billion to Bt4 billion over the next three years in non-oil businesses, such as natural resources and logistics.
       Patiparn Sukorndhaman, senior executive vice president for accounting and finance, yesterday said Bangchak could decide to take over companies or invest in the establishment of new ones.
       The investment models are under study, and the company is in talks with prospective targets.
       "We'll finance the investment through cash flow. We have enough cash for this. Our policy is we won't borrow to finance the investment in new business areas," Patiparn said. "A clearer picture of the new businesses should be available in the next quarter."
       Bangchak hopes the new business areas will account for 30 per cent of earnings before interest, taxes, depreciation and amortisation (ebitda) over the next five years.
       Meanwhile, in the oil business, Bangchak plans to spend about US$30 million (Bt1 billion) on upgrading the quality of its petrol to meet the Euro-IV standard next year. The amount is not included in the company's annual investment budget of Bt700 million.
       Bangchak's diesel products already comply with the standard.
       Patiparn said the company's ebitda this year would likely reach Bt10 billion if global oil prices remained around $70 per barrel. It also estimates the base gross refining margin, including hedging, to stay at $10 per barrel in the second half based on the oil-price estimate.
       Bangchak earlier targeted ebitda of Bt8 billion this year.
       "I believe global oil prices will not swing sharply in the second half, due to the world economic sentiment. So, Bangchak's ebitda will possibly reach Bt10 billion this year," he added.
       He said Bangchak would resume its Product Quality Improvement project next month after shutting down the hydrocracking unit, a part of the project, in May.
       After the resumption, the company will increase its refining capacity to 100,000 barrels per day in the fourth quarter, while full-year capacity on average could be 89,000bpd.