OR revealed its 2021 performance with net profit 11,474 million baht, or an increase of 30.5%. Even though profit margins in the mobility segment weakened due to downward pressure on oil price adjustments at service stations during the fourth quarter, lifestyle segment remained strong. In 2021, OR set a new vision to be “Empowering All Toward Inclusive Growth.”
Jiraphon Kawswat, Chief Executive Officer and President, PTT Oil and Retail Business Public Company Limited, or OR, revealed the performance of 2021. The Company recorded total sales and services in the amount of 511,799 million baht, representing an increase of 19.4% from the previous year, with a net profit of 11,474 million baht, an increase of 2,683 million baht from the same period of last year, or a rise of 30.5%, contributed by both a higher sales and service revenue and a greater EBITDA. The Board of Directors’ meeting has approved to propose the payment of remaining dividend for the Company’s operating results for the second half of 2021 at the rate of 0.19 baht per share, which will be paid on April 28, 2022. In 2021, OR adjusted its direction to thrive business along with public and environmental growth.
The Company has set out a new vision “Empowering All Toward Inclusive Growth” and defined a new mission for inclusive growth through 4 business areas: strengthening the integrated energy business for Seamless Mobility; being determined to create a comprehensive lifestyle choice to resonate with All Lifestyles; broadening the business base for success and recognition in the Global Market; and solving social and environmental issues through OR Innovation.
The overall performance of the mobility segment was improved due to a rise in average gross profit per liter even though the oil product sales volume declined by 5.1% while the performance of the lifestyle segment slightly dropped as a result of strict measures to control the spread of COVID-19 with lockdowns throughout Thailand at certain times of the year. For the global segment, its performance shrank, mainly because of stringent control measures implemented to tackle the virus in some countries.
However, when comparing the performance of this quarter to that of the previous one, EBITDA in the 4th quarter amounted to 4,418 million baht, an increase of 367 million baht, or 9.1%, the major contributor of which was the lifestyle segment that grew by up to 46.0%. For the mobility business group, there was a slight improvement thanks to a higher sales volume. Meanwhile, profit margins softened due to OR’s initiative to alleviate the burden on consumers through retail oil price adjustments as the global oil prices surged. The global business segment decreased by 23.1% while the overall operating expenses rose by 28.9%.
In 2021, OR launched a distribution center for retail businesses, a central bakery and a dry-mix powder plant in Phra Nakhon Si Ayutthaya, to enhance business potentials of Café Amazon. Moreover, it invested in expanding and strengthening businesses related to mobility & lifestyle to comprehensively touch specific requirements of all consumers; for example, expanding EV charging station ‘PluZ’ to locate either inside or outside PTT stations, acquiring shares in Pluk Phak Praw Rak Mae Co., Ltd., Imsub Global Cuisine Co., Ltd., and Kamu Kamu Co., Ltd. In addition, in collaboration with Bluebik Group Public Co., Ltd., OR established “Orbit Digital” to strengthen organizational capabilities with technology and innovations to generate added value and identify new business opportunities.
It also joined forces with 500 Tuktuks to form ORZON Ventures to empower startups, unlocking their growth potential and aligning them with OR’s strategies, etc. In addition, based on the escalating situation of the COVID-19 outbreak, OR, as a Thai company, has taken part in easing the suffering of Thai people by launching a project to invariably support communities through #ORStayStrongTogether. Measures were implemented to assist partners, totaling over 320 million baht, alleviating the expenses of both oil and LPG station dealers, including LPG stores, while also reducing royalty and marketing fees, as well as offering rent discounts for tenants to help SMEs restrain their workers and survive this crisis together.
As for 2022, OR remains committed to performing the business with a focus on creating growth opportunities together with the community (People) and the environment (Planet), accompanying business results (Performance) by leveraging its strength of physical platform, such as PTT Station and Café Amazon located in high potential areas throughout Thailand and overseas, in combination with its digital platform such as loyalty program, digitized payments, underpinned by marketing expertise, professional management, and trust the partners and customers have had towards the brand for a long time.
The commitment was aimed at passing on opportunities for entrepreneurs of all sizes to achieve inclusive growth. The mobility segment has actively maintained Thailand’s leading position in oil-related businesses and expanded the scope of business into the Energy Solution Ecosystem to meet the needs of consumers for green energy. For the lifestyle segment, OR was determined to secure its leading position in the coffee shop industry, as well as acquiring new business partners and startups that project potential to grow and reflect OR’s strategies in creating encompassing lifestyle choices to touch every preference under the roof of the global business group. It aimed to expand the business base to the global arena, benefiting from the advantages of recognized brands, OR’s business expertise, combining and localizing OR’s products to suit specific preferences of each country’s market.
For OR Innovation, it focused on building a business that addresses social and environmental problems using the OR’s existing potentials, complemented by those of partners, to break down problems while also creating new markets and new businesses along the way to attain OR Innovation that enabled OR to grow sustainably together with the people and the environment.
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