Wednesday, September 1, 2010

Thailand's aviation fuel service firm's revenue growth up

Bangkok Aviation Fuel Services has raised its revenue-growth projection to 6 per cent from 4 per cent this year because of the recovery in both scheduled and charter flights.

MR Supadis Diskul, managing director of BAFS, said yesterday after cancelling the discount on fuel-service charges for international airlines that sales were better than expected.

The company now believes fuel demand could increase by 3 per cent, instead of the earlier estimate of 2.2 per cent, to 4.24 billion litres from 4.11 million litres last year.

Thai Airways International, the main customer, is expected to increase the volume of its fuel purchases by 3 per cent next year.

The company has no plans for major capital expenditures this year except for a Bt21-million hydrant pump at Suvarnabhumi Airport and a Bt700-million fuel-storage tank.

BAFS is considering buying another hydrant pump, its 10th. The proposal will be submitted to the board of directors.

The company is conducting a study on its financial structure for the next four years after the plan is completed next year.

The company is also looking at non-aviation businesses to diversify risk from airline refuelling. The recent political unrest affected aviation as well as jet-fuel services, Supadis said.

Revenue growth this year might reach 7 per cent, as a jet-storage rental at Don Mueang could bring in additional income of Bt5 million to Bt6 million a year.

BAFS earned Bt170.13 million on revenue of Bt1.07 billion in the first six months.

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