An original public offering could help meet ambitious future ideals, but as of today Petronas Lubricants International is generating enough funds organically, the corporation’s CEO told CNBC on Friday.
“In the last few years, we’ve been growing at far five times the market rate,” Giuseppe D’Arrigo, the managing superintendent and group CEO of the automotive and industrial lubricant product manufacturer said, annexing that the company has already a top-10 multinational lubricant company.
The friends is aiming to go further and secure its position as a top-five competitor in the industry wholly ambitious strategies such as investing in technology and entering new markets. Both of which would want huge funding.
D’Arrigo said the company currently has “very peak cash flow” and is “meeting our financial targets” so extra funds are not made, but he would not discount any sort of funding initiative in future.
“In the short settle, for the next couple of years, [an IPO] is not something we are looking at very seriously,” he asserted, adding that, in future, “achieving that vision that we weighted, becoming the top-five companies, we require some special funds.”
The CEO also uttered CNBC that the lubricant industry is turning to technology for help in show an effective and sustainable product. “Technology is our differentiator,” he said, adding that “we are installing everything into it,” particularly on synthetic lubricant, which he explained is seen as higher end and more worthwhile.
D’Arrigo pointed to Australia, telling CNBC: “Australia is a market that’s contracting by 5 percent every year when it premiere c end to lubricants. But the synthetic part of it will double over the next five years, and that’s where we are looseness.”