BSRC limits budget outlay

Bangchak Sriracha Refinery Plc (BSRC), a subsidiary of Bangchak Corporation, is being cautious with budget spending to develop its oil refinery in Chon Buri’s Sri Racha district as the refinery business slumps.
The facility, previously owned by Esso (Thailand), is operated by Bangchak after its 2023 buyout of Esso Thailand, whose name was later changed to Bangchak Sriracha Refinery.
“We must be more careful about budget allocation, only approving necessary projects of BSRC, such as operation efficiency improvement and cost optimisation,” said Bundit Hansapaiboon, chief executive of BSRC.
The company is preparing to implement a new capital spending plan from 2025 to 2030, seeking to improve refinery production and manufacture high value-added products after the synergised businesses of Bangchack and Esso earned 4.4 billion baht in revenue during the first nine months of this year.
The new investment value was not disclosed, but BSRC revealed it plans to spend 3 billion baht in the first year, mostly to improve refinery machinery and oil trade.
“This is our clearest budget allocation plan,” said Mattana Sutatham, chief financial officer of BSRC.
The company has been renovating and rebranding 746 petrol stations previously operated by Esso. Up to 95% of the project is completed, with the remainder expected to serve customers under the Bangchak brand by the end of this year, she said.
In the third quarter this year, BSRC posted a loss of 1.73 billion baht, attributed to oil stock loss, according to the website of the Stock Exchange of Thailand. During the first nine months this year, the company reported a loss of 659 million baht.
Mr Bundit said he expects the profit margin of BSRC’s oil refinery business in 2025 to be on par with this year as oil demand slows from large consumers, especially China as economic growth sags in that nation.
In 2025, Bangchak plans to build 100 new filling stations. For non-oil businesses, the company wants to increase touchpoints and interactions with customers, seeking opportunities to sell its products and services. Touchpoints are projected to increase to 400 by year-end, rising to 500-700 next year.