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Published on November 27, 2007

IRPC president Piti Yimprasert yesterday said the company would propose by year-end that the budget for the firm's five-year plan be increased to $2 billion.

The company originally planned to use the additional sum for investment in by-products, such as recycling asphalt into petrochemicals. It now intends asking Thai Oil to invest in the project jointly, as Thai Oil has similar by-products to IRPC, albeit in smaller quantities.

Meanwhile, Prasert Bunsumpun, president of PTT, a major shareholder in IRPC, said PTT would not sell its stake in the company even though "the silent period" - during which major shareholders can sell their holdings - ends next month after the required two years.

"Two years ago, IRPC was saddled with debt worth more than Bt100 billion. But now that debt has been reduced to only Bt10 billion. This shows the big improvement the company has made. I believe the group of new major shareholders will be pleased [with the turnaround]," said Prasert.

Two years ago, PTT and a group of investors - including the Government Savings Bank (GSB), the Government Pension Fund (GPF) and the Finance Ministry - bought the majority of IRPC's capital-increase shares at Bt3.30 apiece.

PTT has the largest holding, with 31.5 per cent, while the GPF, GSB and the ministry hold 10 per cent each. The original creditors together have 8.5 per cent.

The IRPC board met late last week to review the company's nine-month performance but has yet to discuss the five-year investment plan, because the details are not finalised.

IRPC shares yesterday closed at Bt6, down 5 satang.

The Nation