Strength, Confidence, Development: Bangchak’s Three Pillars of Financial Management

Protecting the Balance Sheet

“In operating a business under volatile conditions, financial management and protecting the balance sheet are key to supporting growth,” Phatpuree highlighted. Establishing a solid financial foundation is crucial. “We need to manage in a way that maximises benefits, uses capital efficiently, and manages the investment portfolio to secure optimum returns for the group.” She explained that the circulation of funds for new investments requires the understanding and cooperation of all parties. “The group needs a shared understanding and vision; we must create a balanced investment portfolio and consider where funds can be cycled back as new investments.

We must plan, prepare funds, and manage financial strength and structure in parallel” to respond to future business opportunities.

Communicating Value

Phatpuree further stated that communicating value to foster confidence in Bangchak is another key issue. Previously, embarking on roadshows abroad to garner interest and familiarity with investors was challenging. However, after adjusting the strategy and communicating business developments, the group highlighted its strengths, resulting in the excellent reception it has today from analysts and investors.

First and foremost, our size – considerably rather small - grants us the agility to swiftly adapt and innovate. For example, investments in solar farms, lithium mines, biofuels, and most recently in sustainable aviation fuel (SAF) have placed the group in a leadership position. At the same time, we have business variety providing the group with diverse business engines that facilitate growth and help cushion volatility. Lastly, although Bangchak is in the petroleum industry, it is committed to transitioning to Net Zero, striving towards a ‘balance’ between the value and virtues of its business operations.

These three points have gained Bangchak recognition, and it has been selected as a Top Pick stock that attracts ever-increasing regional funds. The next goal is to foster greater confidence from global analysts.”

Transforming People and Process

Phatpuree pointed out that the most critical challenge in business transformation is not just systems or processes but people. This is crucial for driving operations. “The pressing mission at the moment is upskilling our employees,” she stated, ensuring employees can adapt to changes. Phatpuree added that some team members may be programming or coding if one wanders into the accounting and finance department today. “We started by having teams learn about technology, especially AI, providing opportunities to share knowledge with one another. Employees responded by being open to disrupting themselves to keep up with changes. The first goal is to find case studies for the application of AI in enhancing efficiency. Further expansions are anticipated from this.