SET-listed Prima Marine, an operator of marine transport and storage of crude oil and petroleum products, plans to allocate 4.37 billion baht to purchase new marine vessels this year to grow its business.
Bowon Vongsinudom, chairman of the Prima Marine board, said the company plans to expand its marine fleet by taking over Thai Oil Marine, a subsidiary of Thai Oil Plc, Thailand's largest oil refinery by capacity.
The move comes as Thai Oil restructures its businesses by exiting marine transport service, according to a press release issued by the company.
Prima Marine's new asset acquisition will increase the number of its ships to 59, up from 39.
The asset purchase is scheduled to be completed this month.
Vessels that will be added to its fleet include very large crude carriers, oil and chemical tankers, floating storage and off-loading vessels, accommodation work barges and crew boats.
Mr Bowon said the increase in marine vessels not only helps Prima Marine maintain its competitiveness but is also part of a business plan to change the proportions of revenue from its services post-pandemic.
According to the company, earnings from floating storage unit service decreased to 33% in the first half of this year, down from 55% in 2020.
Service related to domestic oil and chemical trade increased to 46% in the first half, up from 34% in 2020.
Offshore support ship and ship management services rose to 23% in the same period, up from 8% in 2020.
"We plan to provide more services for petrochemical business because gasoline usage is expected to decrease due to the arrival of electric vehicles [EVs]," said Mr Bowon.
"As a result, oil refineries are expected to decrease their gasoline production and use oil as a feedstock for the petroleum industry."
The government is promoting the EV industry and encouraging motorists to buy more EVs.
The cabinet in February resolved to approve a package of incentives to stimulate EV consumption and production between 2022 and 2023.
