The Company entered a legal dispute since 2009 regarding the termination of Condensate Residue Sale and Purchase Agreement by PTT Public Company Limited (“PTT”), which was considered a breach of agreement. The Company received and Arbitration Award dated March 25, 2016, pursuant to which the arbitral tribunal rendered an award by a majority vote to order PTT to pay damages for the unlawful termination of the agreement with the Company in the amount of THB 390 million per annum starting from February 1, 2012 until the date on which the arbitral tribunal rendered the arbitration award, together with 7.5 percent interest per annum on such amount of damages calculated on the date on which the arbitral tribunal rendered the arbitration award until PTT makes payment in full to the Company. In June 2016, PTT has filed a motion to the court requesting the award be abrogated and in December 2016 the Company has filed an application with the Civil Court to seek enforcement of an arbitration award by the court.

The transformation of the Company’s business structure into a Holding Company, in complement with the nature of the business, has allowed the Company to receive revenue streams from two core businesses which are energy and property development. The Company believes that joint-investment and co-management in high potential business will be the business strategy that can provide a superior performance in the long run.

In the property development business, the Company holds a 48.25% stake in Sammakorn Public Company Limited (“SAMCO”), a property development company that focuses on developing single-detached house, townhome, and condominium projects. SAMCO continues to generate sustainable performance despite the real estate market being affected by economic uncertainties. In August 2016, the Company has change its shareholding structure in the community mall business, consisting of 3 malls under the brand Sammakorn Place, by allowing SAMCO to increase its stake to 100% for increase in operational flexibilities. Furthermore, SAMCO has plans to expand and continues to development more projects with its over 45 years of experience, which the Company believes that SAMCO will continue to provide a sustainable growth in the future.

For the energy business, this year the volatility in global oil and gas business has resulted in the unstable price of retail oil price. The Company operates 52 gas stations throughout Thailand with focus on providing Diesel & Gasohol E85 and Gasohol 91. The Company plans to develop “Pure” gas station in a new model that combines the gas station and community mall. We have successfully open two branches with this model and will synergize with the real estate development business in major cities that are expanding.

Furthermore, the oil tank farm and deep-sea port business that the Company holds 30% stake in Thai Public Port Company Limited (“TPP”) also provided a better performance in 2016 which the Company received dividend from TPP in the amount of THB 78 million.

On behalf of the Board of Directors, I would like to express sincere gratitude to the shareholders, suppliers, customers, financial institutions, management team, and every employee for your kind supports, companionship, and dedication to help the Company in tough times throughout the year. Please be assured that the Board of Directors and all employees are committed to operate the business with good governance for the shareholders, suppliers, customers, and employees and to turn the business into profitability and generate yields to shareholders as we have done in the past.

Mr. Satja Janetumnugul
Chairman of the Board of Directors