BANGKOK, Dec 25, 2015 - (ACN Newswire) - Scan Inter PCL ("SCN"; SET:SCN), a provider of integrated CNG-related services, has announced that the company's board approved on 22 December the proposal to invest up to THB276 million to acquire a 100% equity stake in Kaokong Petroleum Co Ltd, which operates a CNG/NGV station business in Rayong province, where CNG demands from the transport industry are high. The acquisition will generate revenue immediately.
PH.D. Littee Kitpipit Kitphiphit, Executive Director and Administrative & Marketing Director, SCN, said Kaokong Petroleum's CNG/NGV station, the second station acquired this year by SCN, promises an average daily CNG sales volume of 70,000kg, which means that SCN's total daily CNG sales volume will rise to 125,000kg, from the 55,000kg level presently generated by the Sam Khok station. The total figure will increase further next year following the COD (expected in early 2016) of the station acquired from BPA Intertrade, he said.
He added that SCN is negotiating a transaction to acquire another CNG/NGV station, which is expected to be completed before the end of this year. Once completed, the deal will allow SCN to achieve the target of seven acquired CNG/NGV stations as previously announced to investors - four self-operated and three operated through a partnership with Susco Public Company Limited.
"Falling oil prices do not affect CNG sales at CNG/NGV stations. Logistics and transport businesses continue to buy CNG, the current price of which - THB13.50 - remains lower than the oil price. We have decided to expand our business by acquiring more stations, knowing it will produce greater returns," says Littee Kitpipit Kitphiphit.
"Total CNG sales from SCN's CNG/NGV stations will now exceed THB600 million in 2016, rising from the current level of about THB300 million. SCN will also experience enhanced profitability growths."
MasterMind Communications Co Ltd
(for Scan Inter PCL)
Orn-arong ("Fah") Pattaravejkul
T: +66-2-612-0281 #129
E: [email protected]
Topic: Business Plan
Sectors: Gas & Oil, Energy, Daily News
From the Asia Corporate News Network
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