Message from the Board of Directors
During 2019, we witnessed many changes in various aspects and at speed pace, both within the country and in foreign countries, particularly with regards to economics, politics, environments and climate. These changes became challenges for UAC Global Public Company Limited (“UAC”) in formulation of strategies, policies and targets for short-term and long-term business guidelines with circumspection under corporate governance principles in order to prepare readiness to cope with such changes. Such considerations must principally keep in mind interests of all stakeholders and strengthening of business undertakings capabilities in order to steadily and continually build up sustainability amidst those challenges by adhering to corporate governance principles, equitable and transparent operations and anti-corruption.
Consequently, during the past year UAC received many awards on sustainability and environment, such as Rising Star Sustainability Awards 2019 from the Stock Exchange of Thailand and received Thailand Sustainability Investment (THSI) for the fourth consecutive years. Additionally, Mae Tang biogas power plant from energy crops in Chiang Mai has received Thailand Energy Awards 2019 under category of On Grid and the Petroleum Production Plant (PPP) in Sukhothai Province has received Green Industry 4 (GI4) Award. These awards and recognition concretely signified that UAC constantly and continually realized about importance of stakeholders, society and environment in parallel with the business undertakings.
UAC always puts emphasis on building up potential of personnel who are deemed as main driving forces of UAC’s businesses to attain achievement as per the planned targets effectively, pursuant to the concept of “We build our PEOPLE and our PEOPLE build our BUSINESS” by focusing on development of potentiality and efficiency of employees of all levels. Moreover, our employees are encouraged to participate in improvement and development of their own work processes and collaborative working processes with other relevant agencies, in order to increase efficiency and effectiveness through 5S and Kaizen Small Group projects
The Board of Directors realized that internal and external factors can impact business operations and they were the causes for opportunities and risks of UAC’s business operations. Hence, the Board of Directors has reviewed short-term and long-term policies, targets and strategies on business operations constantly, by taking into account the relevant factors, both current ones and future tendency, including the public sectors’ policies which can enhance business opportunities for sustainable growth of the organization and the stakeholders and for achievement of target to increase revenue to 5,000 million Baht by 2022. The Board of Directors has also closely monitored management operations of the Management to ensure that operations of the Management and the employees follow the specified policy and strategy. The Risk Management Committee has been assigned to prudently and carefully consider risks from project investments and other investments by considering risk factors in all respects. Consequently, revenue from sales and services of UAC in 2019 reached the highest record since the commencement of its incorporation.
For performance in 2019, revenue from sales and services of UAC and the companies within the Group were 2,871.96 million Baht, which has the highest level since its incorporation because the Company recognized revenue from sales of chemical products to main customers in Petrochemical Industry and recognized revenues from investment in energy projects and supply of chemical products. Earnings before interest, tax, depreciation and amortization (EBITDA) was 352.66 million Baht, decreased 2.34% for the previous year, and net profit was 153.57 million Baht, increased 12.50% from the previous year. Financial cost also decreased 25.80% from the previous year while profit sharing from investments in Bangchak Bio-fuel Company Limited, an associated company that the Company held 30% of its shares, has increased by 22.63 percent which was attributable to the government policy to maintain mixing ratio of biodiesel in diesel oil of 7 percent (B7) throughout the year.
On behalf of the Board of Directors, we would like to thank all shareholders, stakeholders, including the Company’s executives and employees of UAC Group for constantly provision of good cooperation and support with UAC. UAC promises that UAC will operate business pursuant to corporate governance principles, add value to organization for continual growth as well as to build prosper returns to the shareholders and stakeholders so that the move to the 25th anniversary will be constantly and sustainably.