Esso (Thailand) reveals strategy to address the Covid-19 pandemic
Esso (Thailand) Public Company Limited announced the company’s vision to “Power Life with Premier Energy Experience” to cope with the “new normal” challenges following the Covid-19 pandemic. The announcement was made by its first Thai Chairman Dr. Adisak Jangkamolkulchai.
The Covid-19 pandemic has brought about impacts and challenges to the company in various angles ranging from retail sales, product refining, customer services as well as style of working, Adisak said.
“We have faced many challenges (aka “a perfect storm”) when I assumed this position early this year, especially the economic downturn and Covid-19 pandemic. However, we have managed to weather through this perfect storm safely and flawlessly as a result of a highly dedicated, fully engaged, and core-team approach workforce. In addition, we have a very robust emergency response and business continuity plan.
“It is very critical that we remain agile and resilient throughout this period. This has led to a revised plan on how we manufacture our products slate, a new way of how we provide services at Esso service stations, a new approach in Mobil lubricants sales, a new support digital platform, while we continue to focus on the well-being of our employees, our customers, and our impacted communities,” he said.
“The company has recently launched Thailand Vision to Power Life with Premier Energy Experience. “To strengthen that, we are making strategic investments to ensure we are well-positioned to compete in the dynamic and competitive environment with superior product quality and consistent supply availability.”
To improve its competitive position, the company will focus on improving its product offering including the launch of Esso Synergy fuels, and retail network expansion. Synergy fuels are the latest fuels technology developed by ExxonMobil Research and Engineering Company with the same technology as F1 racing fuel. More than 80% of Esso retail network has been upgraded with Esso Synergy imaging, improving appearance and facilities to enhance customer experience.
Esso service stations were increased to currently 676 sites and will reach 690 sites by the end of this year. It is expected to have more than 700 sites next year. Digital technology is more utilised for customer services i.e. payment via QR Code in contactless transactions including the discount code, redemption procedures, etc.
Supporting successful fuels marketing operations, the company enhanced its non-fuel income through strong alliances. The company continued growing non-fuels offers by expanding existing alliances at Esso service stations. These alliance partners are Burger King, McDonald’s, KFC, The Pizza Company, Tesco Lotus Express, Family Mart, Mini Big C, Lawson, 109 Shop, Starbucks, Rabika coffee, Caffee D’Oro, Coffee Boy, B-Quik, Bosch, Wizard, SCG Quick Wash, Betagro, Kerry Express and 51 Tyreshop. Recently, Esso and The Minor Food Group Pcl announced the launch of “Coffee Journey,” a new coffee shop brand exclusive to Esso service stations. The first branch is now open at Esso service station, Ramindra Km 6.5. More branches will be opened in the future These alliances help to optimise retail site profitability and provide high-quality offerings and services for Esso customers.
Commercial Sales was successful with sales channels to Industrial, Commercial, Wholesale, Marine, and Aviation customers as well as cross-border sales to neighboring countries such as China, Laos, Myanmar, and Cambodia. Due to strong collaboration and supply-demand management across the fuels value chain, especially during the refinery site-wide maintenance, the company was able to grow sales volume by 4% in higher margin sales segments; industrial & commercial and cross-border. Commercial Sales business was ranked the top performer income among ExxonMobil affiliates in Asia Pacific thru premium product offerings and a higher-value portfolio. Another milestone product includes the new marine product “EMF.5,” a low-sulphur fuel oil that meets IMO* 2020 requirements.
For its lubricants business, the company focused on expanding the breadth of its high-quality product offerings, market coverage expansion and strengthening its distributor network. To fulfill customers’ growing demand for high-performance products, the company launched a number of products, notably Mobil 1 Top Tier and Mobil DTE20 Ultra. Following the Mobil Super Moto launch, the company enhanced its offering to Thai motorcyclists with Mobil 1 Racing 4T. This demonstrates the company’s commitment in bringing innovative technologies with excellent performance and extended oil life to enhance customer mobility, productivity and sustainability. Mobil’s lubricants business in Thailand has expanded to more than 1,640 Mobil outlets across Thailand to reach targeted customers. It was recognised as one of the most profitable markets of ExxonMobil in South Asia Pacific.
Esso’s Sriracha Refinery and the adjoining petrochemical facilities work together to produce higher-value fuels and chemical products at a competitive cost. The refinery continuously seeks opportunities to enhance margins and reduce costs with improvement projects such as peak utilisation of equipment and facilities, diversification of crudes and feedstock, and energy efficiency projects. During the Covid-19 pandemic, the refinery had to shift its production plan to cope with the situation.
In moving forward, Dr. Adisak added, “We are going to grow with consideration on business market responses emphasising on Safe and Well-being of Employees; Effective Business Continuity Plan; Leadership Strength; Strong Engagement; Business Resiliency; and Supporting Communities. Those responses are to support our vision which will be strengthened through three missions: Our Growth – to develop globally competitive talents/employees that drive future growth, Our Win – to leverage strong integration footprint in Thailand to differentiate our products and services, and Our Pride – to promote our brand value to become the company of choice. With these combined missions, we expect to move stronger in the market and better serve our customers in coping with the vision to Power Life with Premier Energy Experience.”
Esso (Thailand) is an affiliate of Exxon Mobil Corporation which is one of the industry leaders in the global energy business. Esso (Thailand) is an integrated petroleum refining, petrochemical, and marketing company under ExxonMobil, Esso and Mobil brands. In addition to Esso (Thailand), Exxon Mobil Corporation has two other affiliates in Thailand: ExxonMobil Limited which operates Global Business Center (Bangkok GBC), the largest one in ExxonMobil’s network of Global Business Centers around the world, and ExxonMobil Exploration and Production Khorat Inc., which operates the Nam Phong Natural Gas Production Plan, located in Nam Phong District, Khon Kaen Province and a joint venture partner in Sinphuhorm Gas Field, Udorn Thani province.
*International Maritime Organization