Pilatus Marine, a SET-listed firm and Thailand’s main liquefied petroleum gas (LPG) transport operator, is set to accumulate three large used liquid-carrying vessels for a total price of 1.05 billion baht. This move is aimed toward increasing their services overseas.
Operating in each marine and land transport of LPG, Pilatus Marine also leases vessels to other corporations. The incoming ships, each having a charter time of 15 years, are set to spice up the company’s gross profit margin. According to Pilatus Marine Chief Executive Varawit Chimtawan, the gross revenue margin is predicted to surge to about 20-25%.
Each of the vessels, priced at 350 million baht, is ready to be shipped to the corporate between 2023 and 2025. The first vessel is due to be delivered to Pilatus next month. These ships are intended to serve prospects engaged in marine transport on international routes.
Pilatus Marine at present operates 19 vessels, with capacities ranging between 600 to 900 tonnes. Most of these are leased domestically under contracts of affreightment (COA), that are authorized agreements between a shipowner and a charterer, Varawit explains.
“COA enables Pilatus Marine to attain gross revenue margins within 18 to 20%.”
PTT Oil and Retail Business (OR) is Pilatus’ largest buyer, with COA accounting for 60% of the total. WP Energy Plc accounts for 35% of the COA proportion, with the remaining 5% attributed to different purchasers within the spot market.
Pilatus Marine is also targeting the Vietnamese market, with Varawit saying the corporate is planning to signal extra COAs with prospective prospects as the demand for LPG within the nation is witnessing a rapid surge.
“We are conducting a feasibility study of the Vietnamese market and anticipate the business enlargement to take effect subsequent 12 months.”
In the LPG transport sector, Pilatus Marine has landed a five-year contract from OR to move LPG by trucks, revealed Thakrit Chimtawan, chief business improvement officer of Pilatus Marine. The service is slated to start on December 1 of this year, reported Bangkok Post.
To enhance its service to OR, Pilatus Marine plans to add forty three new trucks to its existing fleet of 39 automobiles. The company anticipates a revenue growth of 7.6% to succeed in 850 million baht this year, up from 790 million final year, driven by the expected surge in demand for its providers due to elevated tourism.
For next year, Varawit tasks the revenue to achieve 1 billion baht. Currently, Big of the whole revenue comes from COA and marine transport, whereas 16% is derived from LPG truck transport. However, the proportion from truck transport is expected to drop to 6% in the future, he concluded.
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