PTTEP SETS 2017 BUDGET AT $2.9 BILLION

Economy January 11, 2017 01:00

By THE NATION

PTT Exploration and Production has set its annual budget at US$2.9 billion (Bt103 billion), of which $1.64 billion is for capital spending and $1.26 b



Existing projects in Thailand and Southeast Asia, which are PTTEP’s strategic investment locations, account for 88 per cent of planned capital expenditure. 

Projects in Thailand account for 64 per cent of PTTEP’s estimated capex. The aim is to maintain their production level. 

Projects in other Southeast Asian countries account for 24 per cent of PTTEP’s estimated capex. 

Projects in other regions – Australia, Africa, and North and South America – account for 12 per cent of estimated capex. 

The company’s estimated exploration expenditure in 2017 is $138 million.

PTTEP has set its investment budget for the five years to 2021 at $14.95 billion.

Somporn Vongvuthipornchai, president and chief executive officer, said the company’s financial position remained robust, with cash-on-hand of more than $3 billion.

GARTNER ENHANCES THAILAND BUSINESS

Gartner, a provider of research and analysis on the global information-technology industry, will increase its presence in Thailand by transitioning to a direct business operation on February 1.

Gartner (Thailand) will provide dedicated client-management and business-development functions.

The move will enable Gartner to enhance the level of personalised service it can provide to its growing client base here. 

The direct investment in Thailand is in line with Gartner’s international strategy to expand operations so that it can directly serve its clients in high-growth regions.

“The establishment of a dedicated direct business operation in Thailand is a significant milestone in Gartner’s history in the country,” Thomas Kinslow, vice president of sales for Gartner, said yesterday. 

“Building on our existing client relationships, we will now direct additional investments into our operation in Thailand and recruit additional client-facing personnel.” 

Gartner has hired a sales team for the new Bangkok office.

IT spending by enterprises in Thailand is expected to reach $16.5 billion (Bt587 billion) this year and grow 3.2 per cent to $17 billion next year.

FIRST RICE AUCTION EXPECTED IN Q1

The Commerce Ministry is set to open the year’s first round of rice bidding this quarter, acknowledging the possibility of clearing out all rice stocks by the end of this year as auctions are gradually held during the remaining months.

Duangporn Rodphaya, director-general of the ministry’s Foreign Trade Department, said that after the National Rice Policy Committee approved a guideline for clearing out 8 million tonnes of rice from the stockpiles this year, a department subcommittee had been working on the release plan, with the first auction expected this quarter.

She said that if the auctions could get under way soon, there was a good possibility of clearing out all the stocks by the end of the year as targeted. 

Currently, the government has 8 million tonnes of rice in its stockpiles. The rice varies in age from three to eight years. 

A total of 3.01 million tonnes is good-quality rice suitable for human consumption, 3.15 million tonnes is degrade rice still good enough for the feed-meal industry, and the remaining of 1.85 million tonnes is rotten rice that is only fit for non-food industries such as biofuel production.

Duangporn said the market price of rice would probably not increase much this year as global rice stocks would be quite high. However, this needs to be monitored closely as climate change could reduce the supply of rice and other cereals, which would tend to drive up the price.

THAILAND POST EXPECTS BT3.3 BILLION PROFIT

State-owned Thailand Post Co has forecast revenue of Bt26 billion this year and Bt3.3 billion in profit.

Company president Samorn Terdthampiboon said Thailand Post reported Bt25 billion in revenue and Bt3.5 billion in profit last year, thanks to the rapid growth of its transportation and logistics business.

Last year the revenue from that business accounted for 42 per cent of the total, followed by domestic mail service at 37 per cent and international mail services at 14 per cent.