Bafs aims for B2.1bn from Suvarnabhumi

Airline refuelling volume set to rise

ARANEE JAIIMSIN

Bangkok Aviation Fuel Services Plc (Bafs) projects that it will earn 2.1 billion baht from providing aircraft refuelling at Suvarnabhumi Airport next year, according to its managing director, M.R. Supadis Diskul.

He said depot fees and into-plane refuelling fees would contribute 1.45 billion baht and hydrant fees 650 million.

Fuel volume is expected to rise to 4.47 billion litres next year from 4.20 billion this year, giving the company an 80% share of demand at the new airport.

Key clients are eight shareholders of the company, including Thai Airways International, Caltex, Total, Petronas, Esso, Shell, PTT and Singapore Petroleum.

M.R. Supadis said the company's earlier revenue projection of 1.5 billion baht this year had been revised down to 1.3-1.4 billion baht to reflect the appreciation of the baht against the US dollar, as most of its earnings are in dollars.

Bafs had projected the baht would stay at 40 to the dollar but it has beet trading between 37 and 38 for the past few months.

Lower revenue in the third quarter will also result from the series of delays in opening the new airport, which is now scheduled to begin services on Sept 28.

Bafs posted a net profit of 101.1 million baht in the second quarter of this year, an increase of 10.5% from 91.5 million baht in the second quarter of last year. First-half net profit rose to 228 million baht from 207.5 million a year earlier.

M.R. Supadis said the company expected to pay a lower dividend _ around 37% of its net profit _ to shareholders this year compared with its usual payment of no less than 50%.

A continuously strong baht has also forced Bafs to hedge exchange risk by up to 50%, a level it plans to continue to guard against losses from its earning which are in dollars.

He said the company had eight fuel tanks at Don Muang airport. One had been relocated to Suvarnabhumi and another two tanks would follow soon. The remaining five tanks would stay at Don Muang.

M.R. Supadis said the company was in negotiations with Airports of Thailand Plc, which is one of its shareholders, to waive the rental fee for tank space at Don Muang in an exchange for maintaining the old airport facilities.

Bafs has announced that it will raise its service fee at Don Muang to US$6 per gallon from $2.70, effective from Dec 1. The company's service fee at Suvarnabhumi has been set at $5 per gallon which is comparable to Hong Kong's $5.53 and Singapore's $5.21.

Bafs shares closed yesterday on the SET at 10.70 baht, up 20 satang, in trade worth 4.89 million baht.

Source - Bangkok Post Friday  1 September 2006

Correction:
The company would like to correct that all units in US$ should read cents instead. Therefore, Paragrap 13 should read:
 
"Bafs has announced that it will raise its service fee at Don Muang to US 6 cents per gallon from US 2.74 cents effective from Dec 1. The company's service fee at Suvarnabhumi has been set at US 5 cents per gallon which is comparable to Hong Kong's US 5.53 cents and Singapore's US 5.21 cents."