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Sakol Energy Plc.(“SKE”), one of Thailand’sleading NGV Private Mother Station operatorsprepares for listing in SET to expand its existing NGV and other energy businesses

posted Oct 4, 2017, 10:49 AM by siam coverage   [ updated Oct 4, 2017, 10:51 AM ]

Sakol Energy Public Company Limited (“SKE” or the “Company”), one of Thailand's largest NGV Private Mother Stationoperators plans to list its shares in the Stock Exchange of Thailand this year to raise fund to expand its existing NGV business as well as other energy business.

Mr. ChutchaiSumethchotimetha, Chief Executive Officer of Sakol Energy Public Company Limited or "SKE"mentioned that“the Company is one of Thailand's leading Private Mother Station (PMS) operators. The Company providesservice in compressing gas then distribute to the trucks provided by PTT Group includedimprovingnaturalgas quality to meet the regulatorsstandards. We have signed a long-term 20-year contract with the PTT Groupto operate 2 PMS Stations.1.) Pathum Thani Private Mother Station, Located in Samkok district, Pathum Thani. This PMS accommodates NGV gas demand in the metropolitan area, with initial compressed natural gas capacity and reserves around 250 tons/day. Later, the Company has entered into an additional agreement with the PTT Group to expand the capacity up to 350 tons/day. 2.) Saraburi Private Mother Station, Located in Kaeng Khoi district, Saraburi. This PMS supports the demand for natural gas NGV in the Northeast region, with a maximum capacity of 400 tons/day. Therefore, in total, the company has a combined capacity of 750 tons per day or 273,750 tons/year.”

Mr. Chutchaifurther comments that "The Company has achieved a solid and growing financial performance. In 2016, the company's revenues were 414 million baht, up from 363 million baht revenues in 2015 and 297 million baht revenues in 2014. The Company's net profit were 128 million baht in 2016, increased from the net profit of 117 million baht in 2015 and net profit of 110 million baht in 2014.The Companyhas achieved thenet profit margin of30.80%in 2016, 32.10% in 2015 and 37.07% in 2014respectively.

For the six-month period ending June 30, 2017, the Company had total revenues of baht 163 million and net profit of 38 million baht, compared with revenues in the same period of 2016, of baht 202 million and net profit of 67 million baht. The reasons for a 19% drop in revenues are the decrease of both the NGV sales and the compression fee. The Company's net profit margin for the period was 23.52%,

due to the decrease in service revenue and the increase in administrative expenses to support future growth. Overall, SKE has a strong financial status. As of June 30, 2017, the Return on Equity (ROE) was 14.43% and the Return on Assets (ROA) was 10.76%. Its Debt to Equity (D/E) ratio is a strong 0.54 times."

Mr. Chutchai further adds that, "The Company has filed an application for listing on the Stock Exchange of Thailand (SET). Its registered capital is 465.00 million baht and its paid-up capital is 346.40 million baht. It plans to offer up to 237,200,000 shares for IPO (a 0.50 baht par value), representing 25.51% of the total number of ordinary shares of the Company in the fourth quarter of the current year. Currently, the existing shareholdersholds 100% of the shares, with Sumethchotimethafamily and Nuntee family hold 72.22% and27.78%, respectively. After the IPO, both groups will hold a combined 74.49% shares."

"The Company aim to raise capitalto expand its existingbusiness by improving and enhancing operating efficiency as well as continue its current business. The plan is to invest in the improvement of the efficiency of the compressed natural gas (NGV) system and to invest in NGV conventional gasstation along the Ex-pipeline, the remaining of the proceeds shall be toward the repayment of debt and working capital for the Company.” added Mr. Chutchai.

Mr. Chaipatr Srivisarvacha Chief Executive Officer, KT ZMICO Securities Co., Ltd., a financial advisor, said, “Sakol Energy Plc., asone of the three NGV Private Mother Station operators in Thailand, will receive strong interest from the investors due to its strong performance and its financials. In addition, the Companyis managed by highly-experienced management team in the energy business who has determination to succeed in the Energy Business. The Company also plans to invest in its related business such as NGV Conventional Station along the gas pipeline, a plan developed by the PTT Group. Industry wise, we believe that the renewable energy sector still plays an important role in this country.We firmly believe that the initial public offering of SKE shares will attract stronginterests from investors’.”
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