Bangkok Aviation Fuel Services Plc (BAFS) expects its jet fuel sales to increase by 40% to 4.2 billion litres this year, up from 3 billion litres in 2022, thanks to the lifting of international travel restrictions.
The Thai aviation fuel service provider should be able to exit bad business conditions, which plagued the company for the past three years, and return to profit in the first quarter of 2023, said president ML Nathasit Diskul.
Jet fuel sales should increase to 13.8 million litres a day this year, up from 11.7 million litres in 2022.
The company previously recorded daily sales of 16.8 million litres before Covid-19 spread globally in 2020.
BAFS posted losses for three consecutive years: 374 million baht in 2020, 784 million in 2021 and 281 million in 2022.
Last year, even though jet fuel sales skyrocketed by 82% to 3 billion litres, up from 1.6 billion litres in 2021, the company's revenue dipped by 4% to 23.7 billion baht, down from 24.6 billion.
BAFS is allocating capital spending worth 1.5 billion baht to grow its businesses this year, with 600 million baht going to support its plan to acquire a new on-ground solar farm. The company is conducting a due diligence review of this acquisition.
Some 500 million baht is allotted for the relocation of underground fuel pipelines to prepare land for the development of the country's high-speed train system.
BAFS also plans to spend 170 million baht supporting Global Aero Associates Co, a joint venture between BAFS and PTT Oil and Retail Business, to provide jet fuel service at U-tapao airport.
The company diversified into other businesses, including clean energy development through BAF Clean Energy Corporation and a digital solution business BAF Innovation Development Co.
The company has total electricity generation capacity of 49.4 megawatts from four solar farms in Thailand and two solar farms in Japan.
ML Nathasit expects revenue from new businesses to make up 40% of earnings before taxes, interest, depreciation and amortisation (Ebitda) by 2026, up from 30% last year.
The share of revenue from the aviation business will fall to 50% of Ebitda, down from 70% in 2022, while the remaining 10% will come from the company's service-related business, he said.
