Amidst the current construction economy and industry environment, the Oil & Gas project in Australia, which is the main market of the company, has slowed down to a crawl as a result of the impact since 2016. The Oil & Gas industry was affected by the low market price which has decelerated the investment and project bidding in all regions. However, in 2017, the company was the first company in Thailand to succeed in bidding the de-commissioning of oil rig. In the next 5 – 10 years, a major domestic oil producer had consecutive plans to conduct decommissioning of oil rigs that are no longer in operation. This presents a great opportunity for our company to be assigned such projects in the future.

Despite the impact of the stagnant Oil & Gas industry as previously mentioned, our company still constantly partakes in bidding of steel structure, piping, and module fabrication and erection projects and prepares for the industry rebound. Furthermore, since the end of the year 2016, the Executive committee and I have conducted risk management regarding the instability of revenue and profit of the company by studying the feasibility to invest in business groups that are financially feasible and could generate constant satisfying revenues and profits. The study points out that the industries that met the aforementioned criteria include the Renewable Energy industry and the Property Development and Logistics, which can help minimizing the uncertainty of income and provide profits to the company in accordance to our goal.

Our company started the renewable energy project in Tha Laeng Sub-district, Tha Yang District, Phetchaburi Province during the end of the year 2016 by investing in waste to energy project to generate electricity from municipal waste and sell it to Provincial Electricity Authority. The plant is capable of producing 7.9 Megawatts of electricity. It is operated as WPGE Phetchaburi Co., Ltd. as a joint venture company with WP Green Energy Co., Ltd. Our company holds 60 percent of the shares. It is expected that the project will yield commercial revenue by the end of the year 2018.

Another industry that the Executive committee and I believe to be capable of generating added value to the company is the Property Development and Logistics. This is due to the information from all researches of financial institutions which show that the growth of Thailand economy has resulted in the increasing demand of warehouse each year in the area of Bangkok and industrial areas in major cities such as Pathum Thani Province, Phra Nakhon Si Ayutthaya Province, and Eastern Economic Corridor (EEC) covering Chon Buri Province and Rayong Province. During the end of the year 2017, ST Property and Logistics (STP&L) Co., Ltd. was established to conduct the business by buying land and property of long leasehold in Khu Khot Sub-district, Lam Lukka District , Pathum Thani Province and Bang Pa-in industrial estate in Bang Pa-in District , Phra Nakhon Si Ayutthaya Province. There is over 70,000 sq.m. rentable area with 100 percent occupancy. The company relies on the experience of the Director who worked in real state construction and development. Also, STP&I owns the assets that are over 1,000 Rais of vacant lands and industrial properties Chon Buri Province and Rayong Province, which can generate benefits in accordance with national development policy on Eastern Economic Corridor (EEC).

The board committee and I remain adamant in company development, both in the main and two new businesses with consideration and precaution on the basis of business ethics and corporate governance. As the Managing Director, I would like to extend our gratitude to our shareholders, customers, trading partners, and all stakeholders including domestics and foreign financial institutes that have provided tremendous support to the operations of STP&I. May I also offer our appreciation to all directors and employees who have been carrying on their work with great efforts, perseverance, and hard work altogether and contribute to the development of the company’s stability and sustainability for maximum benefit for all stakeholders.

Masthawin Charnvirakul

Managing Director
STP&I Public Company Limited