PTT Public Company Limited (PTT Pcl), Thailand’s state-owned oil and gas company announced plans to spin off its oil retail and marketing business. The new company will be called PTT Oil and Retail Business Company Limited (PTTOR) and will eventually be listed in the local stock exchange.
The reorganization is meant to improve its retail arms’ competitiveness, increase business efficiency and create more opportunities for PTT’s global expansion in the retail segment. PTT is currently present in Laos, Cambodia and the Philippines.
According to Tevin Vongvanich, PTT president and chief executive officer, said the PTT Board of Directors has agreed upon a reorganization of the company’s oil business and retail marketing to go under PTT Retail Management Company Limited or (PTTRB), which will later be changed to PTT Oil and Retail Business Company Limited (PTTOR).
The current businesses to be transferred to the new entity include:
- Oil unit including retail marketing through PTT service stations nationwide and overseas, commercial marketing of fuel, LPG, and other related petroleum products e.g. aviation fuel, LPG for household and retail, both domestic and international lubricants, as well as business infrastructure management e.g. petroleum logistics and supply.
- Other retail businesses and automobile maintenance services, comprising of retail management, products and services under PTT and other brands e.g. Cafe Amazon, Fit Auto, as well as new businesses such as restaurants, beverage, franchise, and hotel.
Tevin said that the PTT Board of Directors agreed to appoint PTTOR as the PTT Group flagship company for oil and retail business with a plan to offer stock to the public after registration in the Stock Exchange of Thailand.
The planned reorganization is still in the beginning of the implementation phased and is subject to approval by several government bodies, including the Ministry of Energy, the State Enterprise Policy Office (SEPO), the cabinet of Thailand, as well as PTT shareholders. But Tevin said the new firm should be completely in place within the first half of 2017.
“PTT ensures that this rearrangement will boost national energy security and economic development as well as strengthen PTT Group’s business growth and community towards sustainability,” Tevin said.
PTT currently dominates the local retail market with a 40% market share, with foreign-owned companies sharing 32% and other local firms sharing a 28% market share.