SET-listed Gulf Development, Thailand's largest energy company by market value and a telecom operator, is adopting a cautious approach to new investment this year to avoid risks caused by global economic and political uncertainties.
Geopolitical conflicts in many parts of the world and a trade war among major economies can affect businesses in the energy sector.
"These conflicts may weaken consumer purchasing power, eventually affecting electricity demand," said Sarath Ratanavadi, chief executive of Gulf.
The company does not plan to acquire new energy assets, including those in the US, but will carefully conduct a feasibility study to make sure they have good returns on investment.
"This year, we will not invest in new projects or pursue mergers and acquisitions because the economy is not good," said Mr Sarath.
"We also have no plan to buy additional Kasikornbank [KBank] shares."
Gulf purchased 77 million shares in KBank and become the bank's fifth-largest shareholder with 3.25% ownership.
The company is considering selling some of its assets to increase cash flow.
He declined to elaborate on the sales, saying only one asset will be gone within this year. The decision is not related to the slowing economy, said Mr Sarath.
This year is proving challenging for Gulf, but the company remains positive about its business performance, projecting revenue growth of 25% in 2025, he said.
The growth is partly attributed to revenue from power generation businesses in Thailand, notably the operation of the second 770-megawatt generator at Hin Kong Power Plant and 600MW solar farms, including those with battery energy storage systems, as well as 110MW rooftop solar panels under direct power purchase agreements.
The company will also rack up revenue from investment in the construction of the Bang Yai-Kanchanaburi motorway and a share purchase in Intouch Holding Plc, the parent firm of Advanced Info Service.
The investment in Intouch, which led to a merger between Gulf Energy Development Plc and Intouch to become Gulf Development, is expected to give Gulf 3.5 billion baht in dividends a year.
Gulf will also start commercial operation of a cloud service and a liquefied natural gas (LNG) receiving terminal to support its electricity generation business.
LNG is a key fuel for power generation in Thailand.
Part of the electricity supply produced by Gulf will be used to support its 25MW data centre, scheduled to be opened in the middle of this year.