The Company’s customers were domestic and international. The Company supplied fuels as highspeed diesel oil, fuel oil, and lubricants. So, each type of marine vessel has different fuel and lubricant requirements.
Currently, The Company mainly supplies fuels and lubricants for marine customers. Since 2010, the Company expanded its business to cover supplying fuels for land customers, factories and land transportation and buses. In addition, the Company also supplies fuels and lubricants to fulfill foreign customers’ needs. The Company’s foreign customers are in Singapore, Laos, Cambodia, and Myanmar
Fuels supplied are marine fuels, lubricants, and benzene. The Company has no need to invest in fixed assets for its business. When the Company receives customer’s purchase order, it seeks to obtain products from both domestic and foreign oil suppliers. In case customers need the Company to deliver the products, it hires an independent transporter to deliver to customer’s defined destination. For customers who would like to receive fuels in the sea, the Company hires oil transporter to deliver the product to them. If customer has a ship at a port or a customer on land, the Company hires tank trucks to deliver the product to customer’s defined destination. The Company has a policy to send its inspector on board from loading port to destination to ensure that product specification and quantity is correct, and delivery is on time, so customer feels confident on service delivered. The Company’sprofitderivedfrom the differencebetweenoil cost, includingotherprice-relatedcosts, and sellingprices. Since its establishment, the Company gain operating profit on marine and land oil distributor.
The Companyregisteredasoil traderpursuant to Section10, which salesquantityof eachtype orall types of oil is 30,000 metric tons or more annually (approximately36 million liters) but not more than 100,000 metric tons (approximately 120 million liters). For LPG, the quantity is less than 50,000 metric tons and more than 30,000 metric tons annually, or a trader with storage tank of each type or all types more than 200,000 liters. The quantity of oil sold annually is all fuels imported, purchased, refined, produced, or obtained, excluding quantity procured for legal reserve.
The company also provides services in the provision of food, raw materials and other services. For employees in oil and gas drilling both in the sea and on land (Supply Management). Because the company has a customer group that is a supply & service boat and passenger ship, crew boat. Therefore, the company sees the opportunityto provide food, cleaningservice and laundry service (Catering and Service) for oil and gasdrilling staff. To provide services that cover the needs of this group of customers.
Management
The company has invested in Pan Orient Energy (Siam) Limited ("POES") in the proportion of 49.99% of the total issued and paid-up shares of POES. Which is a petroleum and natural gas production and exploration company on land in Thailand and possessing the concession block L53/48, located at Kamphaeng Saen district Nakhon Pathom. Which has a petroleum production period of up to 20 years. The investment in business with POES, which related with the currentbusiness,enablingthe company to learn and experiencefrom the exploration, production and distribution petroleum business, which leads to the long-term concession rights.
Production
The Company has a major shareholder, Nathalin Co., Ltd., which owns 45.04%. The Company is a subsidiary of Nathalin Company Limited (“Nathalin”). Nathalin Group’s business is associated with oil transportation by vessel. Nathalin Company Limited has provided oil transport by sea for more than 30 years. The Company is the only company in Nathalin Group to run fuel sale business. Nathalin has an anti-competition agreement with the Company in order to confirm that Nathalin, whose business, conflict-prone personnel, and relevant persons, according to the Announcement of the Securities and Exchange Commission on the Definitions in the Announcements Concerning Issuance and Sale of Stocks, will limit its business and agrees not to run business or control over legal persons whose business is similar to and/or is competitive against the Company’s current supply management business, including new business in the future. Nathalin will notify and monitor its conflict-prone and relevant people to ensure they are aware of and comply with the agreement. The agreement sets forth penalty against Nathalin should it be violated.
