Fuel company prepares for Lao stock market listing
Fuel company prepares for Lao stock market listing
A major local petrol distributor, Petroleum Trading Lao Co., Ltd., plans to register with the Lao stock market following its strong growth in preparation for the coming Asean Economic Community (AEC).
The company, known as PetroTrade, signed an agreement with APM (Lao) Securities Co., Ltd. on Thursday appointing APM as their financial consultants to restructure their operations with a view to listing on the Lao Stock Exchange (LSX).
The signing of the agreement was attended by LSX Chairman and CEO, Assoc. Prof. Dethphouvang Moularat.
PetroTrade CEO Mr Chanthone Sitthixay said at the signing ceremony the company hopes to be listed on the LSX because it has seen a continuous growth in fuel consumption because of the general economic growth in the country, due in part to the government's large investment projects.
At present the Lao government is investing in many large projects and is also preparing for the AEC in 2015, all of which will benefit business generally.
“We expect that PetroTrade's service units will develop into much larger operations once the company can raise funds on the LSX for their expansion,” APM CEO Mr Somphob Sakpunpanom said.
Currently PetroTrade is undergoing service expansion in preparation for business growth in the next few years. This expansion includes building two additional fuel storage facilities in Champassak province and Vientiane.
Mr Chanthone said the Champassak facility will be able to store 700,000 litres of fuel for general vehicle supply while the one in Vientiane will hold 1.3 to 1.5 million litres of aviation fuel.
Today the company has four storage facilities capable of holding 2.77 million litres, located in Xayaboury, Borikhamxay and Savannakhet provinces and in Vientiane.
The company now has 106 fuel stations nationwide and plans to add 20 to 30 more stations each year.
Mr Somphob said PetroTrade has a sound business operation with good growth. Last year it had an income of about 1.5 trillion kip (6 billion Thai baht), a 30 percent increase over 2011.
PetroTrade plans to have strong and sustainable growth for the foreseeable future. These developments will prepare the company for the anticipated extra service competition, in line with the government's suggestions about preparing for regional market integration within the AEC.
When the AEC comes into being in 2015 it will create a single market and production base, a highly competitive economic region of equitable economic development, and a region that occupies a significant place within the global economy.
vientiane times
