Message from the Chairman

Dear shareholders,

During the year 2019, Sakol Energy Public Company Limited or SKE had significant developments in its operations. SKE started recognizing revenues from investment in new businesses including compressed bio-methane gas (CBG) production and distribution and production and distribution of renewable energy as VSPP (biomass power plant) with installed capacity of 9.9 megawatts, whereby SKE has a power purchase agreement with the Provincial Electricity Authority for 8 . 0 megawatts. As a result, there is developments in respect of SKE’s revenues, which will be sources of sustainable revenues in the future.

Nevertheless, the present climate change caused directly and indirectly from human activities is an important factor in changing the energy business. In the past, the main source of energy generation was fossil fuel, which releases a lot of greenhouse gas and causes significant changes to the climate. Hence, world leaders collectively agreed on Sustainable Development Goals (SGDs) of which one of the 17 goals or the 7th goal is Affordable and Clean Energy. The goal is to ensure universal access to affordable, reliable and modern energy services. The energy business must also adjust itself. There in an increase in the number of campaigns for clean energy. As there is fast development in technology, clean energy will be widely popular in the era that the energy business changes to clean energy (Green Energy). Clean energy will gradually increase its importance and replace the old thermal energy. Although the renewable energy plants are going to play an important role in the society, the importance of the thermal energy plants would not be lowered suddenly. This depends on readiness of each country in the regions. Emerging countries do not generate sufficient electricity to accommodate economic growth and do not have the capital to invest in renewable energy plants to replace the old energy plants.

In respect of the operating performance in the year 2019, the compression of NGV decreased by approximate of 11%, which was consistent and in line with a decrease in Thailand’s NGV usage of 11%. The cause of decrease in NGV usage was the overall economic conditions of the country, particularly export growth which was -2.65%, the lowest in four years and import growth which was -4.66%. This is important to NGV usage because NGV business will receive positive impact if the overall economic conditions improve. The biomass power plant has commenced its operations in August 2019 and achieved its targets by generating revenues from selling electricity in the amount of over Baht 100 million in the past year. SKE gives importance to raw material cost management which is the heart of biomass power plant business and production and distribution of compressed bio-methane gas business for sustainable management in order to achieve its targets.

In addition, SKE has created new core values in the year 2019 to develop its personnel’s attitudes and potentials to create value-added work to SKE. SKE launched a core value “CORRECT” and organized training program called “SKE Leadership Acceleration Program.”

We very much hope to improve capabilities of our personnel who are valuable resources and main drive in bringing the organization towards its goals.

On behalf of the Board of Directors of Sakol Energy Public Company Limited, I would like to express our gratitude to shareholders, customers, trade partners and all relevant persons for their support in SKE’s operations in the year 2019. I sincerely hope that you will continue to support us in our endeavors.

Lastly, we insist on managing our business according to good corporate governance practices and good management for sustainable business. I would like to take this opportunity to thank the Board of Directors, executives and all employees who have performed their duties with full effort and carried out their responsibilities well that SKE has achieved stability in its business operations and growth according to the organizational goals.

 

 

Prof. Emeritus Dr.Direk Lavansiri
President of Board of Directors