SIEM REAP: PTT Plc, the national energy conglomerate, plans to revise up its investment budget for non-oil business, which it says has strong growth potential, especially after the advent of the Asean Economic Community.
Auttapol Rerkpiboon, PTT's senior executive vice-president overseeing oil business, said the company will propose expanding non-oil business to the board of directors at its November meeting.
"The non-oil business has strong potential to grow further," he said. "The growth is higher than our previous expectations."
PTT earlier announced an investment budget for its oil sector, including non-oil business, for the next five years (2016-20) of 24 billion baht. Of the total, 20 billion is for domestic expansion and the remainder for Asean growth.
According to the initial plan, PTT will expand its non-oil retail businesses such as Amazon cafe in Asean, expecting to raise the number of cafes to 200 by 2020, up from the current 37. It also plans to increase the number of petrol stations to 500, up from 170.
"Amazon cafe is growing very fast, especially in neighbouring countries such as Cambodia," Mr Auttapol said. "This has made us feel that 200 branches in 2020 may not be sufficient to meet rising demand, which is why we intend to put the expansion plan before the board of directors."
He said the changing lifestyles of the younger generations in Asean, where the economies are growing fast, would encourage consumers to spend more at modern convenience stores and cafes such as Amazon.
PTT would focus on countries with strong potential such as Cambodia, the Philippines and Vietnam.
Mr Auttapol said PTT's non-oil business in Asean generates around 24 billion baht and the figure is expected to rise to 55 billion baht in 2020 due to its expansion.
In Cambodia alone, PTT reported revenue of 3.5 billion baht from non-oil business and the total is expected to rise to 10 billion baht in 2020. PTT has a market share of around 5% in the non-oil business in Cambodia. The market leader is Cambodia's Tela with a 28% share.
PTT posted a 4.8% year-on-year rise in second-quarter net profit to 24.9 billion baht.
PTT shares closed yesterday on the SET at 338 baht, up one baht, in heavy trade worth 4.91 billion baht.