SET-listed Power Solution Technologies (PSTC), a provider of construction services and clean energy solutions, expects higher revenue to help it return to profit next year, following almost three consecutive years of losses.
The company recorded losses of 1 billion baht, 671.5 million baht and 113 million baht in 2020, 2021 and the first half of this year, respectively, according to the Stock Exchange of Thailand.
PSTC expects to rack up revenue from the operation of a new oil pipeline network, scheduled to start in the fourth quarter of this year, as well as higher demand for liquefied natural gas (LNG) and liquefied petroleum gas (LPG) transport and solar power solution services, said Piyapat Suwannasang, acting chief executive of PSTC.
The company operates the oil pipeline through its subsidiary, Thai Pipeline Network, which is licensed to transport oil to northeastern Thailand and Laos.
The 9.8-billion-baht oil pipeline links Saraburi in the central region and Khon Kaen in the Northeast at a distance of 342 kilometres.
The facility can handle 5,443 million litres of oil a year, with the potential to rise to 7,330 million litres. In the first year of operation, the company expects to transport 3,020 million litres.
According to the latest estimate, oil consumption in the Northeast and Laos is expected to annually grow by an average of 5.9% and 3.9%, respectively, between 2022 and 2031.
PSTC said the oil transport business promises good paybacks for at least eight years as more oil traders are expected to use pipelines to reduce costs, avoid road accidents, and help the government reduce air pollution.
Ms Piyapat said the company is also focused on the expansion of its solar power solution services, including those related to electricity generated by rooftop solar panels.
In the LNG and LPG segments, PSTC operates the businesses through its wholly owned Biggas Technology Co, making PSTC the only company that provides LNG and LPG transport and construction services at the same time. This provides greater flexibility in cost management and efficiency.
Biggas distributes LNG from PTT's receiving terminal in Map Ta Phut to industrial customers.
Demand for LNG is expected to grow significantly as Thailand needs to import more of it, following a drop in domestic gas supply.
PSTC also plans to offer various sizes of LNG cylinders to match the different needs of its wholesale and retail customers.
