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LPG distributor expects lucrative Q4, higher annual profit

SIAM GAS and Petrochemicals is on course to set to new records for revenue and profit this quarter from its LPG-distribution business.

Jintana Kingkaew, deputy |managing director, said yesterday that revenue was expected to |meet the target of Bt60 billion this year, while profit was expected to surpass last year's Bt817.05 million after reaching Bt700 million in the first nine months of 2013.

The bright outlook reflects the surge in the global price of liquefied petroleum gas to US$1,163 per tonne from the low of $775 in the second quarter. The government has also clamped down on smuggling and the illegal use of cheaper household LPG - cooking gas - by industry.

According to the company's preliminary forecast, its sales are expected to grow by 10-15 per cent next year and foreign markets are expected to expand faster than the local market - 15 per cent versus 6-8 per cent.

The firm plans to invest Bt800 million to Bt1 billion next year on building another gas depot in Thailand and increasing its retail stations to 40 from 34 at present.

It is in talks to buy one more gas depot worth about $1 billion (Bt32 billion) in a neighbouring country. The deal is expected to be concluded this year. It is also looking for investment opportunities in other countries to fuel its business growth.


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