The year 2017 marked the ongoing growth of Thailand’s tourism and aviation businesses, albeit slower growth than projected of the volume of jet fuel supply for a number of flights, especially those operated at Don Mueang International Airport. This was mainly due to the impact of the increase in jet fuel excise tax rates on domestic consumption which had caused the Low Cost Carriers (LCCs) to reduce the fuel uplift domestically. In addition, the negative impact factors including the measure for the crackdown on Zero Dollar Tours and the closure of runway for surface repairs at Suvarnabhumi International Airport were all factors causing a slowdown in the volume of jet fuel supply of the BAFS Group, with only 1.6% of growth compared to the previous year. Moreover, the Corporate Group generated extra revenue in the extraordinary items in 2016, while there were no such extraordinary items in 2017. As a result, the Corporate Group’s total revenue and operating performance has decreased from the previous year.
For this year,
The Company took several actions in line with its new strategic plans for the second year and substantial progress was made. For example, in terms of knowledge management, the Company systematically gathered knowledge and experience to be disseminated to both internal and external audiences. Furthermore, the Company has been authorized and given licenses to operate a training center providing a wide range of courses related to the energy service business, which generated extra revenue and cost avoidance.
Similarly, the subsidiaries in the BAFS Group also demonstrated successful performance. The fuel depot and fuel pipeline Message from Managing Director transportation system constructions to the Northern pipeline project of the Fuel Pipeline Transportation Limited (FPT) proceeded according to the plans both in Phichit and Lampang provinces. The fuel depot construction was expected to be completed and revenue could be realized in 2019.
At the same time, the hydrant underground pipeline system construction at Suvarnabhumi Airport conducted by another subsidiary, the Thai Aviation Refuelling Co., Ltd. (TARCO) was nearly completed. In addition, after one year of its operation. The BAFS Innovation Development Co., Ltd. (BID) invented and developed a variety of innovative products, thus supporting the Company’s operation and raising its future revenue.
With its sustainable business strategy focusing on the balance of economic, social and environmental dimensions, the Company listed in the Thailand Sustainability Investment list for 3 consecutive years and was awarded the SET Outstanding Sustainability Award and recognized as one of the “Role Models” in giving value to organizations and society. The aforesaid award could demonstrate the Company’s commitment to ensuring sustainable business operations, generating substantial returns and delivering sustainable value to all stakeholders.
On behalf of the Board of Directors, Management, employees, and subsidiaries, I would like to express my sincere gratitude to all shareholders, customers, trade partners and business alliances for continuing support to the Company.