Business

Thailand to Stop Selling 91-Octane Gasoline

Published

13 years ago

November 30, 2011

Bchcomber

Thailand wants Asean to take the lead in creating and controlling the market for alternative fuels, but political and environmental challenges are daunting

Thailand will halt sales of 91-octane gasoline from October 2012 in a bid to reduce its imports of crude and support the domestic renewable biofuel industry, the country’s energy minister said on Wednesday.

“This plan will not only create greater opportunity for our farmers who grow biofuel crops, but also help restore the environment as well,” Pichai Naripthaphan told reporters.

He said the cancellation of the 91-octane gasoline would boost demand for ethanol by 19 million to 21 million litres per month, or around 800,000 litres a day.

Thailand’s domestic ethanol consumption stood at 1.5 million litres per day, while total production capacity was at 3.0 million litres per day.

Ethanol producers had to switch to export more ethanol in the past few months to survive in the face of a sharp fall in domestic demand after the government policy of removing levies on gasoline prices encouraged motorists to switch back to pure 91-octane gasoline.

The country has exported 60 million litres of ethanol so far this year, up from 45 million litres shipped for the whole of 2010, to major buyers such as South Korea, Japan, Singapore, the Philippines and China, the Thai Ethanol Manufacturing Association said.

Pichai also said the government was still on track to promote the use of renewable green energy, aiming at boosting the proportion of renewable energy to 25 percent within a decade, up from 6 percent now.

Now that global supplies of oil are dwindling, Thailand believes Asean’s agriculture sector has the potential to become a leader in biofuels.

Biofuels can come from many sources. Dr Prayad Pokethitiyook, chairman of the Environmental Biology Programme at Mahidol University, is part of a research team that is working with PTT Plc on the possibility of using algae.

Following the Middle East’s Organisation for Petroleum Exporting Countries (Opec), Thailand’s Energy Ministry has pitched an “Opec for Biofuels” to its Asean friends.

Biofuels are defined as liquid or gas fuels derived from biomass including crops, and they produce far lower carbon emissions than fossil fuels such as coal and petroleum.

Sarawut Kaewthip, senior planning and policy analyst from the Energy Ministry, said some countries in the region clearly had vast potential to become major exporters of biofuels, but there was still a long way to go before the region could create the equivalent of an Opec for the commodity.

“The collaboration must be very close between leading producers Indonesia, Malaysia and Thailand. It could take many years of price increases and drops for them to learn how to control the market,” said Dr Sarawut.

World trade conditions have also changed dramatically since the formation of Opec, making a biofuel cartel tougher to arrange for policymakers and private operators, said Dr Sarawut.

“The Thai government sees the readiness and plentifulness of biofuel resources not used for food production. From now on the three big players have to co-develop their resources to set up an Opec of biofuels and also prevent deforestation,” he said.

“But we have to accept that biofuel cannot completely replace fossil oil; biofuels are only another choice for countries that want to reduce dependency on oil imports or cut greenhouse gases.”

The Energy Ministry and the International Energy Agency both expect that biofuels could replace up to 25% of fossil oils in the transport sector by 2030, a significant leap from 1.5% this year.

Biofuels could supply 30 million barrels per day 20 years from now compared to total fossil oil demand today of 85-86 million bpd.

“If Asean could limit biofuel production in Asia-Pacific to only 500,000 to 600,000 barrels of supply, we could dominate the regional price,” Dr Sarawut said.

“But how many years or decades from now that happens depend on the attention devoted by each government and the private sector.

“Thailand is the world’s largest exporter of cassava and second largest for sugar, but there is no value added to these commodities. If you develop them to be ethanol and biofuels we can sell them at a higher price and a higher margin.”

He said Brazil controlled ethanol prices as the world’s largest exporter and it could be a major partner to Asean as Brazil emphasises the Atlantic Ocean market while Asean would focus on the Pacific.

Biofuel development is tough but needs to be done quickly, said Capt Dr Samai Jai-Indr, an energy expert with the Royal Thai Navy and a member of the House of Representatives Energy Committee.

He warned that industrialised countries would keep their eyes on the biofuels industry.

Europe, the United States and East Asia will never welcome biofuels unless they can secure their own resources in some way, he said.

“The companies that benefit from exploration and production in the Middle East – the US’s Chevron, Royal Dutch Shell from the Netherlands and Britain, Total of France, BP of Britain and Mitsubishi of Japan – are all from developed countries that dominate the natural resources of other countries,” said Dr Samai.

“They may move fast to control world fuel plantation areas including those here in Asean. If [developed countries] can’t control the industry, they would seek ways such as human rights, the environment or increased food prices to slow demand in the industry because otherwise they would have to depend on imported biofuels.

“Look at Brazil for an example. Its private and public sectors withstood complaints by developed countries that Brazil’s sugarcane plantations demolished parts of the Amazon forest.”

Now some developed countries buy biofuel resources in Africa and Latin America.

Dr Samai suggested biofuel producers explore opportunities in Burma and Indochina, as they possess the proper climate for fuel crops and have low labour costs.

Meanwhile, Srihasak Arirachakaran, executive director of Thai Agro Ethanol, one of the first ethanol producers in Thailand, hopes to see an organisation materialise.

“Yet these are very much rhetorical, academic questions as there are many hurdles to overcome, not just the wills of leaders,” said Dr Srihasak.

Thailand is in an early stage of biofuel development as the cost of production is still too high and the whole industry needs to develop from upstream to downstream, said Dr Srihasak.

“It is important to consider crop yields, proximity, sourcing and distribution. In the meantime, each government needs to monitor closely what it needs and what it can export to assure sufficient supply for the region. This is not difficult if ministers co-operate.”

Biofuels are appropriate for mature economies such as Europe, Japan and North America, where governments are tackling emission problems by replacing fossil fuels with biofuels and subsidising green fuel prices, said Dr Srihasak.

While the Thai government believes in the fast development of the technology, Dr Sarawut points out that the new generation of biofuel technology should focus on making it commercially viable.

Malaysia and Indonesia, the world’s largest and second-largest exporters of palm oil, have shown interest in an Asean biofuel Opec.

Dadan Kusdiana, Indonesia’s Ministry of Energy and Mineral Resources representative, said Indonesia was ready to collaborate with other countries, particularly the Asean region.

Biofuels development is on the national agenda as Indonesia hopes to not only curb fossil fuel imports but also improve local employment and standards of living.

Indonesia set a target for renewable energy of 17% of total energy use in 2025 by providing incentives for investment and subsidising costs for some types of renewables.

“There is no deforestation here and we are researching ways to find efficient land uses and increase productivity,” he said.

Malaysia’s Ministry of Plantation Industries and Commodities says its development of biodiesel is aimed at reducing dependence on fossil fuels and protecting the environment, even though using palm oil for biodiesel is not economically viable.

Since 2006, Malaysia has encouraged innovative local biodiesel production technology for normal and winter-area grade biodiesel; namely, Malaysia Palm Oil Biofuel. Now the technology has been exported to Thailand and South Korea.

“The move to develop biofuels does not come from the cost of fossil fuels, but to generate a return for local agriculture and industries involved with this sector,” said a Malaysian report.

Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

Published

2 months ago

October 8, 2024

Salman

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

Business

Old National Bank And Infosys Broaden Their Strategic Partnership.

Published

2 months ago

October 8, 2024

Salman

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

Business

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

Published

2 months ago

October 8, 2024

kiaragrace

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP