Strength, Confidence, Development: Bangchak’s Three Pillars of Financial Management
This Executive Talk was honored by
Ms. Phatpuree Chinkulkitnivat
Chief Financial Officer and Senior Executive Vice President, Accounting and Finance.
This Executive Talk issue was honored to share Financial Management Principles of Ms. Phatpuree, the CFO who oversees the financial machinery of the Bangchak Group.
Financial management is a fundamental foundation of business operations and a crucial tool in helping Bangchak achieve its business goals. Ms. Phatpuree emphasizes three pillars of financial management: Protecting the balance sheet, Communicating value, and Transforming people and processes. These three aspects will support Bangchak in achieving steady and sustainable growth.
Protecting the Balance Sheet
In operating a business under volatile conditions, financial management and strengthening financial stability are key to supporting growth. Establishing a solid financial foundation is crucial. We need to manage in a way that maximizes benefits, utilize capital efficiently, and manages the investment portfolio to secure optimum returns for the group. The circulation of funds for new investments requires the understanding and cooperation of all parties. The companies within the group need a shared understanding and vision; we must create a balanced investment portfolio and consider where capital can be cycled back as new investments. Additionally, to seize future business opportunities, careful planning and financial preparation are necessary, along with maintaining both financial strength and a sound financial structure.
Communicating Values
Previously, embarking on roadshows abroad to garner interest and familiarity with investors was challenging. However, after adjusting our strategy to not only communicate business developments but also highlight our strengths, we have received positive responses from analysts and investors. Our strengths include our size-considerably rather small, allows us to be agile and act quickly in various areas. For example, investments in solar farms, lithium mines, biofuels, and most recently in sustainable aviation fuel (SAF), positioning us as a leader. Secondly, the diversity of our business provides us with a wide range of engines driving growth and helping us withstand volatility. Lastly, while Bangchak operates in the petroleum industry, we are committed to achieving Net Zero, striving towards a ‘balance’ between the value and virtues of our business operations.
These three points have gained Bangchak recognition, and it has been selected as a Top Pick stock that attracts ever-increasing regional funds. The next goal is to foster greater confidence from global analysts.
Transform People & Process
The most critical challenge in business transformation is not just systems or processes but people—who are the key drivers of the operation. The pressing mission at the moment is upskilling our employees, ensuring employees can adapt to changes. For example, if you walk into the accounting and finance departments today, you might see some team members writing programs or coding. We started by encouraging the team to learn about technology, especially AI, and provided opportunities for knowledge sharing, which has yielded better-than-expected results. Employees have opened up to the idea of disrupting themselves to keep pace with changes. The first goal is to find case studies where AI can be applied to make work more efficient and effective. We expect to see the results of this initiative expand further in the future.
The continuous effort in all aspects has had concrete results. BCP stock has been selected for the SET50 index since 1 July 2024. “We have awaited this moment for over seven years. This achievement fills us with immense pride. It reflects the stability and credibility of Bangchak that will attract the attention of index-sensitive funds.”
Ms. Phatpuree Chinkulkitnivat
Chief Financial Officer and Senior Executive Vice President, Accounting and Finance.