Message from the President and CEO

With regards to the business overview Bangchak Group in 2021, along with the improvement of the COVID-19 situation in many countries and increased global vaccination rates stimulating overall economic recovery, the Group has closely monitored and analyzed the situation, allowing it to adapt in times of crisis, and resulting in outstanding performance for all business groups, namely, Refinery and Oil Trading Business, Marketing Business, Green Power Business, Bio-based Products Business, and Natural Resources Business and new businesses. The Group had a record-breaking annual performance, with revenue from the sales and rendering of services at THB 199,417 million, an EBITDA of THB 25,818 million, benefitting from investments in upstream businesses such as in natural resources in Norway through OKEA, as well as Business Process Redesign (BPR) to improve internal process efficiencies and reduce costs which began in 2020 and increased Group’s EBITDA in 2021 by more than THB 1,600 million.

In parallel with business operations, Bangchak Group accentuates employee care and its role in providing social and community assistance throughout times of normality and crisis. During the COVID-19 crisis of 2021, various campaigns were organized to support governmental, public, and private agencies in delivering social assistance, including health protection and economic recovery programs in Bangchak refinery communities and across the country. For instance, “Bangchak and Thais Combat COVID-19 The Series” (to support people in Samut Songkhram), providing fuel cash cards, sponsoring meals for public health personnel, high-flow oxygen tanks, providing space in service stations for food sellers who were affected by mall lockdown, distributing food and essential supplies etc. In 2021, Bangchak received a community engagement score of 86 from the Refinery communities, the highest score since 2014, when evaluations began.

Bangchak Group operations adhere to the 3S Strategy (Security, Stability, Sustainability) and the 4G Sustainability Strategy (Green Business, Green Production, Greenovative Experience, Green Society) conducting business while taking in to consideration performance and social impact, and a balancing sustainable growth targets in 3 dimensions, namely, Environmental – Social – Governance (ESG) with the goal of “Bangchak 100X” and committed to addressing climate change by setting critical goals; to be Carbon Neutral by 2030, and Net Zero GHG Emissions by 2050. Critical importance is given to increasing investments in green businesses, enhancing productivity and efficiency, improving production processes, studying technologies that minimize greenhouse gas emissions and highly efficient carbon capture and storage technology, while planning to offset remaining carbon emissions through natural sequestration.

In 2021, in addition to continually improving productivity and processes to reduce greenhouse gas emissions, Bangchak Group also embarked on three critical missions towards the carbon neutral and net zero targets, as follow;

1. Establishing Carbon Markets Club with other leading organizations in Thailand to promote carbon credit trading and to raise awareness of the importance of carbon credit trading in a smooth transition to clean energy, which is required to minimize the environmental impact of the existing energy management, while accelerating the development of green energy efficiency and stability that is accessible.
2. Jointly establishing the Syn Bio Consortium, which is an important green innovation, comparable to farming in a laboratory, aiding various industries, especially the food industry to reduce land-use for livestock production, and directly affects greenhouse gas emissions into the atmosphere.
3. Business expansion into fuel pipeline transport and logistic businesses through Bangkok Fuel Pipeline and Logistics Company Limited (BFPL) which will reduce greenhouse gas emission from vehicular transport by 10,000 tons of carbon dioxide equivalent annually.

Amidst the COVID-19 pandemic in 2021, Bangchak Group emphasizes the care of its employees and their families, as well as business partners, procuring COVID-19 vaccines, and strictly enforcing various preventative measures. Administering viral screening for employees in offices, Bangchak refinery and operational areas, service stations, and Inthanin coffee shops. Adapting appropriate working habits to restrict the occupancy of office space and maximize safety, while encouraging employees to creatively innovate to develop new products or business models, emphasizing process improvement by incorporating digital technology and foster the development of new skills to be prepared for future business expansion.

In the service businesses, through clear strategy and commitment to improve process efficiency, Bangchak service station was able to retain its number 1 Net Promoter Score (NPS) which is an international metric that measures customer engagement word of mouth, while Inthanin is widely-accepted as the leading Eco Brand, being environmentally-friendly and committed to businesses that are responsible for the environment, society, and community.

As a Leader in Energy Transition committed to developing business innovation in harmony with the environment and society, guided by good corporate governance, management that prioritizes individual and organizational development, Bangchak was assessed by S&P Global, the assessor of the Dow Jones Sustainability Indices (DJSI) and awarded to S&P Global Sustainability Award 2022 – Silver Class, Global Top 3, and received the MSCI ESG Rating of AA, which is the highest for the Energy Sector in Thailand, consecutively since 2018.

Lastly, in 2021, Bangchak was recognized with more than 40 various awards for management, innovation, sustainability, corporate image, social responsibility etc. at the national level, such as, HRH Princess Maha Chakri Sirindhorn Trophy at the Thailand Corporate Excellence Awards 2021 for Corporate Improvement Excellence and Product/Service Excellence, and at the international level, such as First Runner Up for the UN Women 2021 Thailand WEPs Awards for Gender Inclusive Workplace. These awards and accolades are the collaborative work of Bangchak executives, employees, business partners and all stakeholders.

On behalf of Bangchak Group, I would like to extend our sincere gratitude to our shareholders and stakeholders for their constant trust, confidence, and support. We remain committed to ensuring continued business growth through good corporate governance, towards an sustainable organization, generating returns for our investors, creating value for our stakeholders, and nurturing sustainability for the world by prioritizing sustainable business innovation in harmony with the environment and society; an enduring concept that has guided us through the years.