ANNUAL REPORT 2020 Annual Report 2020 | Gulf Energy Development Public Company Limited
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Annual Report EN Cover ขนาด 29.7 x 21 เซนติเมตร พ�มพ 4 สี Gulf Energy Development Public Company Limited 87 M.Thai Tower 11th Floor, All Seasons Place, Wireless Road, Lumpini, Pathumwan Bangkok 10330 Tel: +662-080-4499 Fax: +662-080-4455 E-mail: [email protected] ANNUAL REPORT 2020 Annual Report 2020 | Gulf Energy Development Public Company Limited Annual Report 2020 | Gulf Energy Development Public Gulf Energy Development Public Company Limited CONTENT 02 12 14 16 VISION AND MISSION MESSAGE FROM MESSAGE FROM THE GENERAL THE CHAIRMAN CHIEF EXECUTIVE OFFICER INFORMATION 18 20 22 24 BACKGROUND AND KEY EVENTS FINANCIAL INVESTMENT KEY MILESTONES IN 2020 HIGHLIGHTS STRUCTURE 26 50 53 70 COMPANY’S INDUSTRY MANAGEMENT DISCUSSION SECURITIES AND BUSINESS OVERVIEW AND ANALYSIS SHAREHOLDER INFORMATION 73 74 76 78 DIVIDEND BOARD OF MANAGEMENT BOARD OF DIRECTORS AND POLICY DIRECTORS TEAM MANAGEMENT PROFILES 99 111 135 139 MANAGEMENT CORPORATE SUSTAINABILITY AND RISK MANAGEMENT STRUCTURE GOVERNANCE CORPORATE SOCIAL RESPONSIBILITY 146 148 150 151 INTERNAL CONTROL RELATED PARTY REPORT OF THE REPORT OF TRANSACTIONS BOARD OF DIRECTORS’ THE AUDIT COMMITTEE RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS 155 157 158 164 REPORT OF THE AWARDS & INVESTMENTS IN DEFINITIONS SUSTAINABILITY RECOGNITION SUBSIDIARIES, ASSOCIATES, AND RISK MANAGEMENT JOINT VENTURES AND COMMITTEE JOINT OPERATIONS Investors can find further information regarding the Company from the Annual Registration Statement (Form 56-1) which has been disclosed at www.sec.or.th or the Company's website (www.gulf.co.th) VISION AND MISSION VISION A trusted company that innovates to develop premier energy across boundaries. MISSION To integrate innovative strategy, quality resources, premier technology and culture of commitment to achieve the most reliable energy solution. Annual Report 2020 | Gulf Energy Development Public Company Limited VISION AND MISSION VISION A trusted company that innovates to develop premier energy across boundaries. MISSION To integrate innovative strategy, quality resources, premier technology and culture of commitment to achieve the most reliable energy solution. Goal-Oriented Annual Report 2020 | Gulf Energy Development Public Company Limited Goal-Oriented Unity Annual Report 2020 | Gulf Energy Development Public Company Limited Unity Learning Annual Report 2020 | Gulf Energy Development Public Company Limited Learning Flexible Annual Report 2020 | Gulf Energy Development Public Company Limited Flexible MESSAGE FROM THE CHAIRMAN GULF CHOSE TO DIRECT OUR CORPORATE “SOCIAL RESPONSIBILITY INITIATIVES FOR 2020 WITH CONTRIBUTION OF MORE THAN THB 100 MILLION TO OVER 100 PROJECTS TOWARDS SUPPORTING FRONTLINE HEALTHCARE WORKERS, MEDICAL FACILITIES, AND VULNERABLE GROUPS AFFECTED BY COVID-19. ”Dear esteemed investors, The past year has been turbulent and unpredictable as Bangkok and Nonthaburi provinces, and distribution of the impact of COVID-19 reverberated around the world, medical masks to frontline hospitals throughout the causing social and economic disruptions and adversely country, benefitting over half a million people in Thailand affecting healthcare systems, people’s livelihoods and and Vietnam. We also implemented measures to ensure well-being, which were felt by all of us in one way or the health and safety of our employees at the initial another. The pandemic forced us to drastically change stage of the outbreak by strictly adhering to the disease the way we interact with one another and paved the way transmission prevention measures announced by the for a new normal. Leaders were faced with unprecedented government including restrictions on international travel challenges of guiding their organizations through the and regular disinfection of all premises under the Gulf crisis while simultaneously driving growth responsibly Group, to name a few. In addition, we worked closely and sustainably. with our customers to find solutions to alleviate their impact from the pandemic. It is our belief that this sense Gulf Energy Development Public Company Limited (“GULF”) of community seen throughout the Southeast Asian region has continued to uphold our commitment to creating a has been a major contributing factor in the rapid return to positive impact on the quality of life for society through a new normal. these difficult times and chose to direct our corporate social responsibility initiatives for 2020 with contribution Moreover, GULF places the highest priority on ensuring of more than THB 100 million to over 100 projects towards that potential risks that may have an impact on our supporting frontline healthcare workers, medical facilities, business operations and investors are appropriately and vulnerable groups affected by COVID-19. Our projects analyzed, monitored and managed. In 2020, GULF included donation of medical equipment and Personal implemented our newly developed business continuity Protective Equipment (PPE) supplies to major hospitals plans in response to the pandemic, which included and local communities in Thailand and Vietnam, providing provisions for managing infectious disease outbreaks and meal boxes and survival kits to urban communities across work-from-home policy. In addition, the Sustainability and 12 Annual Report 2020 | Gulf Energy Development Public Company Limited Mr. Viset Choopiban Chairman of the Board Risk Management Committee (SRMC) was established in digitalization, which is expected to change the structure early 2020 by the Board of Directors to provide oversight of energy business and the way businesses operate. on matters relating to sustainability and risk management In preparation for such changes, GULF has developed within the Company to ensure that sustainable growth is long-term business strategies which include increasing achieved in a responsible manner. In the past year, the our investment in renewable energy to reduce carbon SRMC acknowledged the creation of five new policies emissions while maintaining our No Coal Policy, developing which address human rights, diversity, biodiversity, our gas business in line with the government’s strategy, IT and a supplier code of conduct, and the updating and diversifying into infrastructure and utilities business. of risk management policy and environmental and GULF is also exploring new technologies and businesses social management policy. It also approved a new risk in order to remain an agile and dynamic company that assessment matrix and criteria to be used from 2021 can maintain sustainable growth for the benefit of our onwards. stakeholders. At the same time, GULF is well aware of rising global On behalf of our Board of Directors, the management trends that can potentially disrupt the energy industry and the employees of GULF, I would like to extend our such as decarbonization, decentralization and digitalization sincere gratitude to you, our shareholders, investors and – trends which are all interconnected. Decarbonization all stakeholders, for the confidence and trust that you gained momentum as global efforts were made by all have placed in GULF and to reiterate our aspiration to sectors to limit the rise in global average temperature develop the nation’s economy and elevate the quality of in alignment with the targets set out under the Paris life of people in society through sustainable value creation Agreement. Furthermore, advancements in renewable while maintaining our competitiveness by evolving with the energy technologies, robotics and artificial intelligence changing world. have led to the acceleration of decentralization and 13 Mr. Sarath Ratanavadi Chief Executive Officer Dear valued shareholders, The global COVID-19 situation has presented unique We recognize that as the world transitions to a low challenges this past year. With the world still on guard, carbon society, energy security remains a key concern, Gulf Energy Development Public Company Limited has especially for emerging and developing markets working implemented a number of measures to safeguard our to strengthen their economies. We therefore continue employees’ health and well-being while maintaining our to remain involved in the power generation business, commitment to enhancing shareholder value. At the same leveraging our experience and expertise to develop time, we made it a priority to contribute to numerous large-scale gas-fired power projects that will be able to CSR initiatives focused on supporting frontline healthcare meet the ever-increasing demand for electricity and help workers and alleviating the impacts to local communities support industrial and economic growth. As natural gas and vulnerable groups in the society especially through will play a major role as the key fuel that will carry the the peak of the pandemic. Having seen the widespread world through the energy transition, we are also working medical, social and economic impacts of the global to support greater flexibility in accessing and utilizing crisis, we are happy that several COVID-19 vaccines natural gas, creating a more sustainable value chain have been successfully developed and look forward to that will fulfill the need for environmentally-responsible the improved sense of security and increased stability economic growth and energy stability. that the vaccines will bring. While we have undertaken more commitment overseas, The COVID-19 pandemic has brought greater awareness we continue to invest in projects that align with the of how the world has changed, bringing to light how Thai government’s policies and