Bangchak Unveils Ambitious Restructuring Plan Targeting Doubled EBITDA
bangchak Corporation is embarking on a significant restructuring initiative, underpinned by a 35 billion baht investment plan spanning 2026-2091, with the goal of substantially increasing its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). The company aims to effectively double its EBITDA, moving from a current level where deductions for interest, tax, and depreciation result in only 15 baht while core business operations generate 30 baht, to an anticipated 80 billion baht annually within three years.
This strategic shift signals a focus on maximizing profitability directly from its core businesses, rather than relying on external factors. The restructuring will be implemented beginning January 1, 2026, and will divide the company into five key groups:
1. Marketing & Bio-energy Refinery: This group will oversee the Phra Khanong and Sriracha refineries, expanding processing capacity from 265,000 barrels/day in 2025 to 285,000 barrels/day by 2078. Investments will focus on future fuels like Sustainable Aviation Fuel (SAF) and Hydrotreated Vegetable Oil (HVO), with a combined capacity of 7,000 barrels/day. Bangchak also plans to accelerate ethanol and biodiesel production and expand its network of service stations to over 2,300 locations by 2078, aiming to increase its market share from 29% to 33% by 2030.
2. Oil Trade (Trading): Elevated to a “new flagship business,” the oil trading division will move beyond simply supporting the refinery to generate direct revenue and returns.Bangchak aims to increase the EBITDA of this group from its current 650 million baht to 4,400 million baht within three years.
3. Upstream Business (UPSTREAM): The company intends to become a leading player in ASEAN petroleum exploration and production,focusing on establishing a stable cash flow and leveraging experience gained from its operations in Norway.
4. Electric & Infrastructure: Expanding beyond renewable energy, this group will invest in strategic infrastructure including Data Centers, Cloud Business solutions, and battery recycling. The EBITDA target for this group is set at a minimum of 7,000 million baht by 2078.
5. New Business & Holdings: This division will focus on investments in emerging technologies such as Bio-LNG, Green Ammonia, Nuclear Fusion, and synthetic fuels. Bangchak will also allocate $30 million to investments through a Corporate Venture Capital (CVC) fund.
Bangchak has established a minimum Internal Rate of Return (IRR) of 15% for all investments to manage risk. The company anticipates the new structure will generate an additional 10,000 million baht in EBITDA annually, building upon its existing base.
Share Buyback Program Planned
In addition to the restructuring, Bangchak is preparing a three-year share buyback program, expected to be proposed to a committee within the current year. The company believes its stock price currently undervalues its potential and views the buyback as a way to enhance shareholder value and demonstrate confidence in its growth prospects. Bangchak aims to maintain leadership in Total Shareholder Return (TSR), considering both capital gains and dividend payments, compared to its industry peers.
The “BANGCHAK 100X” strategy, according to the company, is more than just a financial plan; it’s a comprehensive organizational restructuring designed to balance energy security with a transition towards clean energy, positioning Bangchak for strong, stable, and sustainable growth in a rapidly evolving energy landscape.
