01 September 2023

The strength of BBGI is reflected in TRIS's continued "A-" rating for the company.

TRIS Rating Co., Ltd. has affirmed the company rating of BBGI Public Company Limited ("BBGI"), a subsidiary of Bangchak Corporation Public Company Limited (“BCP”), at "A-" with a "stable" outlook. Reflecting the Company’s position as a leading producer in Thailand’s biofuel market, has a competitive advantage, and leverages an increase in biofuel demand from BCP's acquisition of ESSO.

According to Kittiphong Limsuwannarot, President and CEO of BBGI, said that according to the latest credit rating of TRIS Rating, the leading credit rating agency in Thailand for 2023, BBGI has been affirmed at "A-" with a "stable" outlook, reflecting the company’s position as a leading producer in Thailand’s biofuel market that has competitive advantages in leveraging the distribution through its major shareholder, BCP, and has an opportunity to grow from additional sales from BCP's acquisition of ESSO.

Although the company's operating results in 1H2023 will be affected by the price of raw materials used in ethanol production increasing due to a shortage of raw materials and the selling prices of biodiesel and by-products decreasing due to the recovery of the global crude palm oil shortage problem. BBGI is likely to recover in 2023-2025 from BCP's acquisition of ESSO, which allows BBGI to benefit from the increasing demand for biofuels and be capable of producing and supplying biofuel at high efficiency.

BBGI aims to expand toward bio-based high-value bioproducts, such as joint investment in sustainable aviation fuel (SAF) from used cooking oil with BCP, to reduce carbon dioxide emissions, which are the cause of the greenhouse effect and help reduce global warming, as well as create sustainable returns for shareholders and stakeholders.