BAFS targets 7.5 billion baht revenue by 2026 with renewable energy focus

BAFS GROUP collaborated with PTT on Sustainable Jet Fuel (SAF) on May 24, 2023, Image via Facebook, BAFS GROUP

Bangkok Aviation Fuel Services Plc (BAFS) is predicting its revenue to hit 7.5 billion baht by 2026, with a significant boost from its diversification into renewable energy development.

Although the jet refuelling service, which has bounced back from pandemic-induced losses over the past three years, remains the company’s primary focus, its earnings proportion is expected to decrease. BAFS estimates that this business will contribute 50% of total revenue, down from 80% in 2022, while new businesses will account for 50%, up from 20% last year.

BAFS president Nathasit Diskul emphasised that new businesses would play a crucial role in the company’s revenue growth. BAFS diversified into clean power generation in 2020 through its subsidiary, BAF Clean Energy Corporation. Presently, the company owns four power projects in Thailand and two in Japan, with a combined electricity generation capacity of 49.4 megawatts.

With global campaigns against fossil fuel usage and climate change, renewable energy development is gaining traction worldwide. BAFS is currently in discussions to acquire 3-4 renewable energy assets both in Thailand and abroad, aiming to increase its overall capacity.

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Additionally, BAFS established BX Global Invest Pte in Singapore as an investment arm seeking opportunities in various companies. BX Global Invest’s purpose is to assist BAFS in expanding its revenue base, aligning with the company’s growth strategy that encompasses human resource development and a fundraising scheme.

In the aviation fuel sector, BAFS previously announced that it anticipates a 40% increase in jet fuel sales to 4.2 billion litres this year, up from 3 billion litres in 2022, due to the easing of international travel restrictions. BAFS’s jet refuelling service covers Suvarnabhumi, Don Mueang, Samui, Trat and Sukhothai airports, with plans to extend the service to U-tapao airport in Rayong, situated near the Eastern Economic Corridor.

BAFS also operates fuel storage and transportation through Northern Fuel Pipeline Transportation System Co, an oil pipeline service provider. The company expects sales volume in this category to grow by 46% to 600 million litres this year, up from 410 million litres in 2022. The pipeline extends from Ayutthaya’s Bang Pa-in district in the central region to the northern province of Lampang, reports Bangkok Post.

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