Bandhit Thamprajamchit, CEO and Managing Director of Thai Oil Public Company Limited (SET: TOP), announced during the 2025 Annual General Meeting of Shareholders that the Clean Fuel Project (CFP) is on track following shareholder approval for an additional investment of THB 63.028 billion on February 21.
The project will proceed as planned with the assistance of expert technical consultants who will work with the team to assess remaining project timelines and costs.
Should new main contractors or subcontractors be required, the selection process must be thorough, following contractual terms and evaluating the contractors’ capabilities and readiness comprehensively. An independent consultant will ensure the selection process is efficient and appropriate, guaranteeing the project’s completion.
Regarding project funding, CFP’s investment will come from two main sources. The first source is cash on hand and cash flow from operations, amounting to approximately $1.2-1.7 billion.
The second source will involve future funding avenues such as bond issuance, bank loans, and new financial instruments like issuing equity-like debt instruments and optimal asset management. This portion of funding is expected to total approximately $1-1.5 billion.
Bandhit further explained that share buybacks are considered a financial tool for liquidity management if the company’s stock price falls below its intrinsic value. Given TOP’s substantial retained earnings and liquidity exceeding current needs, a share buyback could be utilized.
However, with TOP currently engaged in the CFP, preserving excess liquidity for project investment remains the priority, thus postponing consideration of buybacks. Adhering to clear strategic plans and focusing on value creation through business growth is deemed more beneficial for shareholders.
