SET-listed Bangkok Aviation Fuel Services (BAFS) expects jet fuel sales to exceed 3 billion litres this year, enabling it to move back into the black thanks to the government's easing of air travel restrictions.
The company remains positive about its total sales at year-end, although during the first half it posted a loss of 196 million baht.
BAFS was in the red for two consecutive years as it ran a loss of 374 million baht in 2020 when Covid-19 first hit Thailand, then posted a loss of 784 million baht in 2021 when the country struggled to deal with widespread outbreaks of the virus.
Last year BAFS sold only 1.6 billion litres of jet fuel, but the company expects the sales volume to grow by 40% to 4.2 billion litres this year.
Although the 2022 sales will not equal the 2019 volume, which stood at 6.1 billion litres, the tally is enough for BAFS to avoid a loss, said ML Nathasit Diskul, president of BAFS.
Sales in August were 8.6 million litres per day, allowing the company to break even, said ML Nathasit.
He expects sales to grow to more than 9 million litres per day this month.
From January to June, sales soared to 1.2 billion litres, up from 810 million litres in the same period last year.
The company's additional revenue did not include new businesses in the renewable energy sector, which BAFS diversified into during the pandemic.
The businesses include two solar power plants in Japan with a combined electricity generation capacity of 13 megawatts.
BAFS, through its wholly-owned Clean Energy Corporation, acquired the facilities from Padaeng Industry Plc in a bid to generate income from clean energy and mitigate the impact of Covid-19.
The company also bought seven solar farms with a total capacity of 36.4MW in Thailand from Padaeng Industry.
BAFS operates an oil transport business through Northern Fuel Pipeline Transportation System Co, an oil pipeline service provider.
The oil pipeline runs from Ayutthaya's Bang Pa-in district in the central region to the northern province of Lampang.
The acquisition of renewable energy and oil pipeline assets was aimed at offsetting a drop in revenue from its jet fuel sales, which were seriously affected by the government's air travel restrictions to contain the spread of the virus.
Thailand started reopening the country late last year to attract foreign tourists after the number of Covid-19 infections abated. Authorities also relaxed entry rules to boost the reeling tourism industry.
According to the Bank of Thailand, foreign tourist arrivals reached 3.6 million in the first seven months of this year, and the total number could exceed 8 million in 2022, higher than the central bank's forecast of 6.7 million.
BAFS, together with sugar miller Mitr Phol Co, is also jointly conducting a feasibility study on the manufacturing of bio-based jet fuel called "sustainable aviation fuel" in a move to help Thailand reduce carbon dioxide emissions.
Prime Minister Prayut Chan-o-cha vowed during the 26th UN Climate Change Conference last year that Thailand would be more aggressive in addressing climate change and strive to reach carbon neutrality, a balance between carbon dioxide emissions and absorption, by 2050, and a net-zero target, a balance between greenhouse gas emissions and absorption, by 2065.
