SET-listed Dexon Technology, a Thai pipeline inspection company, expects to earn revenue next year in excess of the estimated 704 million baht for 2024, driven by more new overseas and local clients, including PTT Exploration and Production Plc (PTTEP).
Dexon Technology, which specialises in inspection services for oil and gas pipelines, is not concerned about the impact of global campaigns for cleaner energy on its business in the future as some types of newer fuels still need to be transported via pipes.
When it comes to 2025, the company's board of directors has yet to officially set a revenue growth target, but commercial and marketing director Nawarat Khamsri believes the company can achieve a 20% growth rate next year, based on services provided for additional customers, mostly in the oil and gas exploration and production sector.
Among the company's new customers is PTTEP, which awarded Dexon Technology a contract on general non-destructive examination for offshore oil and gas production rigs in petroleum fields, namely the G1, G2 and Arthit blocks in the Gulf of Thailand.
Non-destructive examination is an essential part of the maintenance service to ensure the structural integrity and operational safety of oil and gas production rigs.
The contract lasts for three years and three months, starting from October 2024.
Dexon Technology will earn roughly 300 million baht from this assignment, said Ms Nawarat.
Dexon Technology expects its revenue to grow this year by 8.5% to 704 million baht, driven mainly by earnings from a backlog of services.
Up to 88% of revenue from these services has already been earned, so it should not be difficult for the company to rack up more during the remaining months of the year, said Ms Nawarat.
Most of the backlog is for services provided domestically.
The services offered overseas, especially in the US and Europe, also boost Dexon Technology's revenue. The firm plans to seek additional customers in the US, Europe, Latin America and Asia.
"We use a form of equipment called 'Hawk' to conduct inspections of ageing pipelines in the US and Europe. This equipment can help owners prepare plans in advance to prevent accidents, including oil and gas leaks," said Ridkorn Tessalee, chief inspection officer at Dexon Technology.
The company is aware of an upward trend in using clean energy as part of global efforts to depend less on fossil fuels and cut carbon dioxide emissions.
But pipes are still an important part of this environmental effort, said Mr Ridkorn. Pipes can be used to carry hydrogen fuel and support carbon capture and storage technology, which need pipes to carry carbon dioxide to be stored underground, he said.