In 2020, the company has faced a series of business challenges due to the impact of COVID-19 situation including the reduced sales of ethanol and tapioca starch. The decrease in ethanol sales came from the reduced travel demand and significant economic slowdown in Thailand. The decrease in tapioca starch sales came majorly from the export falling short due to purchasing country’s economic slowdown.
Despite the circumstance, in 2020, Ubon Bio Ethanol was able to achieve a net profit of 99.3 million Baht, a significantly higher amount comparing to that of 2019 due to the government’s temporary permission for the fuel-grade ethanol producer to sell industrial-grade ethanol to be used as raw materials for alcohol sanitizers to cope with the demand upsurge caused by the pandemic. The induced demand resulted in only small decrease in ethanol sales compared to 2019 while the market price of both fuel-grade and the more expensive industrial-grade ethanol increased which ultimately increased the net profit the company made. The company also benefited from the continuously increased proportion of higher profit-margin organic tapioca starch.
The company adheres to its policies in social responsibility to strengthen the confidence of all associates as well as its good corporate governance to allow steady and sustainable growth in the long run.
The directors, managers, along with all staffs will in best effort continue to work and solve problems cautiously so the company can work through all obstacles with good outcomes and sustainable business success for the optimal benefits of all shareholders and associates.
Mr.Palakorn Suwanrath
Chairman of the Board