BCP aims to lift foreign limit

       Bangchak Petroleum Plc (BCP) will propose extending its foreign shareholding limit to 20% from 10% now to facilitate conversions by holders of the company's depository receipts.
       Patiparn Sukorndhaman, a senior executive vice-president, said the company would propose that shareholders approve the amendment to its articles of association on Sept 24.
       "Extending the foreign limit will increase our trading liquidity and appeal in the market," he said. The higher limit will ease share conversions by holders of Bangchak-DR1 depository receipts.
       Bangchak executives also told investors yesterday that an employee joint investment programme would belaunched on Oct 1. Employees may allocate up to 5% of their monthly salaries to invest in Bangchak stock, with Bangchak matching contributions of up to 7.5% of each member's salary. The funds will in turn be invested in Bangchak common stock or depository receipts.
       Up to 900 employees are expected to join the programme.
       Bangchak also plans to invest 4-5 billion baht in new ventures over the next five years, including natural resources,upstream petrochemicals and logistics,he said. It hopes the new businesses will eventually contribute up to 30% of total revenue and reduce the company's sensitivity to oil price fluctuations.
       While the new business ventures would be financed from internal cash flow, Bangchak would continue to look for opportunities to raise funds from the bond market, said Mr Patiparn.
       "Last year, we were rated BBB+ by Tris Ratings. We will be re-rated again once the PQI project is done," he said.
       The $378-million product quality improvement (PQI) project will help convert fuel oil into higher-value products, and lift Bangchak's refining capacity from 80,000 barrels per day to 100,000 by the end of the year.
       BCP shares closed yesterday on the SET at 14.4 baht, up 10 satang, in trade worth 102.38 million baht.