WP Energy Public Company Limited (SET: WP), a leader in comprehensive energy and LPG distributor under the brand “Worldgas”, announced strategic direction for 2022 with focus on the new ambition “Transformation for Sustainable Growth”, by strengthening its core LPG business while investing in a wide range of new businesses to generate stable income and achieve sustainable development goals. Positioned to become an all-inclusive energy solution provider, the company set forth three pillars of growth, comprising supply chain enhancement to support future energy trends, customer ecosystem expansion and green & sustainable energy solution development. The company reported 2021 resilient growth with total revenue of 11,540 million baht, and profit of 88 million baht despite the challenges arising from the Covid-19 pandemic throughout the year.
Chomkamol Poompanmoung, Chief Executive Officer, WP Energy Public Company Limited, said that “Despite several ongoing challenges in 2021, we managed to maintain a resilient growth and business performance. Our major achievements during the year included reaching the target number of distribution point expansion to sustain long-term revenue growth, establishing an international trade business to export LPG gas to the Vietnamese market with the volume of more than 18,500 tons exported, venturing into new businesses such as gas cylinder repair business and clean energy business, where we already reached agreements with partners to install solar rooftop with a total capacity of 6 megawatts. Moreover, we have started commercial operation of Bangpakong LPG Terminal Phase 3, which enables WP Energy to increase its LPG reserves to 2% of the annual trade volume, according to the policy of the Department of Energy Business in order to strengthen Thailand’s energy security, all while enhancing our supply chain capabilities all the way from upstream to downstream.”
“Our way forward in 2022 will be centered around the new strategy known as the “Transformation for Sustainable Growth”, as we are moving ahead to adjust and uplift our business operations to better meet ongoing and future changes and challenges while adhering to the principles of good governance, taking care of partners, business alliances and all stakeholders for a constant and sustainable growth together,” added Chomkamol.
Moving forward with the Transformation for Sustainable Growth strategy, WP Energy set forth three pillars of growth, as follows:
- Supply Chain Enhancement – continue to grow the LPG business under the brand Worldgas which remains the prime cash cow and to maintain market leadership by strengthening the capabilities of the supply chain from upstream to downstream, leveraging innovation to enhance business operation, and continuing the expansion of distribution channels to better reach customers nationwide, both in B2B and B2C segments, implementing new marketing communication activities such as the launch of new advertising campaign titling “No Burden ….. Just Order Worldgas”, setting up full-scale gas cylinder repair business and expanding into the gas cylinder manufacturing business in the future, as well as launching a CRM platform to enhance online distribution channels, adopting digital technology in various business operations such as IOT-enabled one-stop service call center.
- Customer Ecosystem Expansion – aim to be an integrated service & energy solution provider, building upon over 42 years of experience in the energy business by innovating new capabilities to provide new service offerings and consultancy services to customers, in parallel with exploring innovation and how to apply it to add flexibility to service offerings in order to better meet specific needs of customers. Focus for industrial customer is to offer a wide range of products to help improve cost efficiency, as well as alternative energy and other solutions suitable for different business needs. For commercial customer sector such as hotels and restaurants, key approach is to partner with several food platforms to better offer products on each different platform.
- Green & Sustainable Energy Solution Development – focus on develop a sustainable business by experimenting new eco-friendly energy businesses that can generate long-term returns, expanding clean, renewable energy portfolio by setting 2022 target to sign power purchase agreement (PPA) from solar rooftops and solar power plants with total contracted capacity of 20 megawatts, as well as conducting feasibility study on new greener energy-related businesses in line with emerging energy trends
“In addition to business perspective, we stay committed to the purpose of making Thai people smile as led by the mission “We Promise”, which aims to create positive impact to the economy, society, environment, as well as the living and livelihood of Thai people. Our vision to be a reliable and dependable corporate citizen is centered around 4 aspects, namely, improve Thai people’s quality of life of Thai people, foster arts and culture, support children and youth, and enhance sustainable environmental stewardship, all of which have always been integrated into our corporate responsibility initiatives,” added Chomkamol.
Noppavong Omathikul, Deputy Chief Executive Officer – Finance and Corporate Management, WP Energy Public Company Limited, added that “Our 2021 operating results are robust, with total LPG sales of over 700,000 tons, recording 20% growth in the industrial customer segment and 2% growth in the LPG for cooking segment compared to 2020, and higher than industry average. We managed to generate a satisfactory profit of 88 million baht, as driven by implementing cost efficiency program, work process optimization, and prudent financial control and investment policy. The LPG business accounted for 98% of our total revenue, with remaining 2% from other businesses. For 2022, we anticipate total LPG sales of 765,000 tons and expect LPG export volume to be 25,000 tons, with a total income of not less than 12,000 million baht, increasing 5% from the previous year. We are confident that, with strong business acumen, clear business strategic plan and the prudent policy in operational, financial and risk management as set forth in our new “Transformation for sustainable growth” strategy, the goal of achieving a strong and sustainable is eminently within reach.”