Siam Gas to sell 180,000 tonnes of LPG to Philippine company

Corporate July 01, 2014 00:00

By Pichaya Changsorn
The Nation

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Siam Gas and Petrochemicals (SGP), Thailand's second-largest LPG trader, said yesterday it had clinched a six-month contract to sell 180,000 tonnes of liquefied petroleum gas to Liquigaz Philippines Corp.

The selling prices will be based on the world markets. SGP said it would realise the additional revenues, estimated at US$180 million (Bt5.8 billion), during the second half of this year. 
Liquigaz is the second-largest LPG retailer in Philippines. The deal is good for only six months, since Liquigaz is being bought by PR Gaz, a smaller LPG retailer there. SGP also took part in the contest to buy Liquigaz but its offer was much lower than PR Gaz, which won the bid.
Deputy managing director Jintana Kingkaew said SGP expected to post no loss in inventory and a return to profitability in the second quarter, after posting a surprising Bt170-million loss in the first three months of this year. She said it would take another month or two to see if the firm would be able to achieve its target to of higher profit growth this year.   
So far, LPG prices in the world markets have become more stable, which is sup-portive to its business, she said.
The company targets 15-per-cent sales-revenue growth in 2014, reaching Bt76 billion. It plans to add three LPG fuelling stations this year, to total 40 outlets.
SGP aims to sell 3 million tonnes of LPG this year, 1.3 million tonnes in domestic sales and the rest overseas. Last year, it sold a total of 2.6 million tonnes.
The company recently lost a contract to sell 20,000 tonnes of LPG a month to Shell, but it was partially offset by a contract from Petronas, Jintana said.

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