The year 2020 has accounted as the year that Prima Marine Public Company Limited (the “Company”) has continued its business growth, though all countries over the world, including Thailand, have encountered a critical situation caused by the breakout of COVID-19 that has severely affected to business and overall economic system. However, the Company could operate and expand its business as planned, resulting in a total income of THB 5,925.8 million and net profit of THB 1,701.6 million, increased by 10.8% and 51.6%, respectively compared to 2019.
According to the adjustment of business strategies and the investment for business expansion during end of 2018 to 2019, aligning with the change of industrial conditions, the Floating Storage Units (“FSU”) Business could generate the revenue of THB 3,246.8 million in 2020, increased by 67.4% compared to 2019, while the Domestic Tanker Business was slightly affected by COVID-19 due to a decline in the number of domestic and international flights caused the significant reduction of Jet A-1 fuel consumption. The Company solved this problem by switching the trading routes and vessels to fit to the demand and reducing chartering vessels from third parties in order to maximize the utilization of our own vessels. As the result, the Company could consistently operate its business during the difficulties and maintain the high level of utilization rate. Hence, the Domestic Tanker Business could generate the revenue of THB 2,035.7 million in 2020, slightly dropped by 10.2% compared to 2019, while other business units could go on their operations as planned.
The operating’s results from International Tanker Business and Offshore Support Vessels (“Offshore”) Business could performed as planned. Consequently, the proportions of revenue from FSU business and Domestic Tanker Business were continuously increased compared to a total revenue.
In 2020, the Company emphasized the enhancement of all business potentials to create sustainable growth in the long run by diversifying the risks of income sources which may be affected by the fluctuation of oil prices and global economic. In the late of 2020, the Company has entered into the acquisition contract of Thaioil Marine Company Limited, which is engaged in the business of ships transporting passengers and supporting materials for petroleum drilling, and offshore oil platform repair and demolition business (crew boat), 13 ships have been contracted to serve PTT Exploration and Production Public Company Limited for long term, while 5 domestic tankers have served Thai Oil Public Company Limited and companies in Thaioil Group. Such investment will enable the fleet to be expanded and enhance the potentials of the Company’s petrochemicals transportation business for Thai Oil Group, and to enhance the scope of services in Offshore Support Vessel (Offshore) Business. The Company has expected of the increasing demand for crew boats due to the rise of crude oil prices, so that the manufacturers have turned to make more drilling. In addition, the benefit from such acquisition of 3 Very Large Crude Carriers (VLCC) in international tanker business will strengthen its earning ability and profitability which could generate stable revenue in long term. After the acquisition expected to be completed by mid-2021, the Company’s five major business units comprised of: Domestic Tanker Business, FSU Business, International Tanker Business, Offshore Business, and Ship Management Business, will be similarly strong, and this will help reduce the impact from the fluctuation of any particular business in the long term. Furthermore, the business synergy of Thaioil Marine Company Limited and its Group can increase and maximize the efficiency in business operations and significantly reduce administrative expenses indeed.
In terms of management, the Company complies the principles of Good Corporate Governance along with the creation of sustainability for business operations based on the code of good governance with the responsibility towards all stakeholders, and attention to environment and society. In 2020, the Company was rated of 5-star or “Excellent” on corporate governance (Excellent CG) from the survey on Corporate Governance (CGR) of Thai listed companies organized by the Thai Institute of Directors (IOD) with the support of the Stock Exchange of Thailand, and also seriously focused on anti-corruption, having the Company certified as a member in the Collective Action Coalition Against Corruption (CAC), as one of 457 companies to be certified out of 1,047 companies showing their intentions to participate in the project.
In the year of 2021 is still the year of challenges as COVID-19 outbreak and anti-epidemic measures has still existed which may impact on the business operations. Only one thing I believe is the systematic business plan and the sustainable-based investment with the commitments of the Board of Directors, all executives and teamwork employees. All of these will act as the important mechanism to encourage the Company to overcome this crisis and steadily and sustainably grow.
On this occasion, I, on behalf of the Board of Directors, wish to thank all management team and all employees for working together with determination and dedicating their fullest efforts until the company greatly achieved in 2020 and would like to show our gratitude to all shareholders, benefactors and stakeholders as well as related parties for always giving trust, confidence, and support to the Company. I would like to ensure you that the Company will operate the business by adhering to the codes of good governance for utmost benefit of all stakeholders.
Mr. Bowon Vongsinudom
Chairman of the Board of Directors