Esso (Thailand) Public Co.’s lubricant sales fell 5.7 percent last year, in line with a decline in the country’s sales of motor vehicles and motorcycles.
Two industry associations urged the Malaysian state of Sabah this week to allow oil palm plantations and mills to reopen, advising that the industry could suffer severe setbacks if they are forced to remain closed.
Stated-owned Thai Oil Group’s base oil business posted a massive jump in net profit for the fourth quarter of 2019, and a slight decrease in net profit for the full year. Revenue for the base oil business was down for the fourth quarter and full year.
Automotive sales in the Association of Southeast Asian Nations dropped 3 percent in 2019, but sales of two-wheelers increased 3 percent, according to figures released by the Asean Automotive Federation this week.
Thailands lubricant demand is expected to grow this year as the automobile manufacturing sector expands and foreign companies relocate to the country to avoid tariffs imposed as part of the trade war between the United States and China, according to a global consultancy.
Vehicle sales across Southeast Asias big three markets - Malaysia, Indonesia and Thailand - are projected to cross 3.9 million units combined by 2025, according to an analysis by Frost & Sullivan. The study cited factors such as robust economic growth, high population and low car parc.
State-owned Thai Oil Group reported that profit for its base oil business slumped last year and that it expects the market to continue to soften throughout this year.
Bangchak Corp. and SCG Chemical Co. signed a memorandum of understanding last month to develop a lubricant packaging recycling scheme in Thailand.