Message from the Chairman

Dear shareholders,

        In the year 2022, there were many important events and one of the important events that had a wide impact was the Russia-Ukraine war, which has affected the energy sector and created a global energy crisis with fluctuations in both volume and price of energy. This was because Russia is the world's largest oil producer. Prior to the war, Russia had the second largest oil production capacity in the world with production capacity of approximately 11 million barrels per day. In addition, more than 40% of consumption by European countries is dependent on natural gas from Russia. As a result, many countries around the world had to adjust their energy supply to replace the missing supply from Russia. Due to the decrease in supply of oil and natural gas, the European Union and many European countries had to purchase from production sources in Asia and the Middle East. As for Thailand, although our country will not be directly affected because it does not rely mainly on energy from Russia, the situation of the Russia-Ukraine war still needs to be closely monitored because fluctuating energy prices can affect Thailand’s lifestyles and business sector.

        In respect of the operations of Sakol Energy Public Company Limited "the Company." In the year 2022, the revenue structure of the Company has changed from the past which used to rely on revenue from private natural gas stations, which accounted for over 50% of total revenue. However, revenue from private natural gas stations during last year has decreased to 25%, with increased proportion of revenue from businesses invested by the Company according to it business plan that have started to generate revenue such as biomass power plant, non-hazardous waste or unused materials management by sorting waste and producing refuse-derived fuel (RDF), and financial technology business. The businesses will generate main sources of revenue in replace of revenue from private natural gas stations in the future as private natural gas station contracts will expire in 2029 or in another 6 years. However, the Company made a significant investment in the year 2022 in expanding waste disposal and fuel processing business by setting up a new plant with a production capacity of more than 300,000 tons of RDF per year. The Company plans to complete construction of the plant in 2023 and will start supplying fuel according to the contract with SCI Eco Services Co., Ltd. The fuel supply contract includes a condition to deliver fuel of approximately 135,000 tons per year with a term of 3 years, starting from January 2023. The contract value is over Baht 1 billion. The investment in this new plant is not only an execution according to the Company’s vision and policy in expanding clean energy business, but the Company is also proud to be a part in driving the green economy that focuses on reducing impact on the environment and resources as an economic model that helps solve global warming and greenhouse effects, which is currently supported and promoted in Thailand and all over the world. The carbon credit certification of the Company’s business illustrates apparent support from the Company. At present, Mae Krating Biomass Power Plant has already been registered as part of Thailand's Voluntary Greenhouse Gas Reduction Project (T-VER) and, the plant has been inspected and its registration has been certified. The initial assessment indicates that the amount of greenhouse gas reduction is approximately 33,000 tons per year. Currently, the carbon credit trading market is growing in both international and domestic markets. This will become a support for the Company to earn more revenue from the clean energy business, which is its main investment strategy.

        On behalf of Sakol Energy Public Company Limited, we would like to express our deepest gratitude to all shareholders, customers, business partners and stakeholders for your continuous support and assistance in the Company’s works

        Finally, we would like to confirm and give all stakeholders confidence that we will operate under the principles of good governance and good management for the sustainability of the Company. We would like to take this opportunity to thank the Board of Directors, management team, employees, and personnel of the Company for their full support and cooperation and being responsible for their duties at their best capability. Their efforts have helped the Company to be able to get through the economic and social crisis in the year 2022 and, with these efforts and cooperation, I believe that we will together make the organization grow steadily and sustainably.



Prof. Emeritus Dr.Direk Lavansiri
Chairman / Independent Director