SET-listed WP Energy, Thailand's second-largest liquefied petroleum gas (LPG) trader by sales volume, expects sales growth of 2.5% and revenue growth of 7.3% next year, despite the state's policy of capping domestic LPG prices.
LPG sales are projected to reach 820,000 tonnes this year, exceeding a previous estimate of 800,000 tonnes. Roughly 790,000 tonnes of total sales are expected to be generated via domestic sales, with the remaining 30,000 tonnes set to be exported, said WP Energy.
The company expects to rake in 17 billion baht in revenue this year, rising 7.3% to 18.3 billion in 2024.
The increases are attributed to greater demand from all segments of LPG users, covering households, industries, including the petrochemical sector, and transport, said Toungrat Vongpivat, deputy director of WP’s accounting, finance and investor relations department.
The company is also improving its LPG supply chain by increasing the number of distributors, she said.
WP, through its subsidiary Thai Gas Co, which produces gas cylinders and provides maintenance services, plans to expand the sales network to cover more households who use LPG as cooking gas.
WP operates five LPG terminals and 168 LPG refilling plants at present. These facilities are key factors that are driving its growth.
In 2023, the company allocated 1 billion baht to fuel its business expansion. Half of the budget went to its rooftop solar power business.
WP diversified into the solar energy business in February 2020 by joining hands with its business partners in order to seek a new source of revenue as the company does not want to depend solely on the LPG business.
The clean energy business is run by Sollar Co, which is a subsidiary of WP.
The company’s electricity generation capacity stands at 10 megawatts under 15 private power purchase agreements at present.
WP expects to increase the capacity by 30MW this year and aims to reach 100MW by 2025, with customers to come from industry, academic institutions, hospitals and owners of public buildings.