Bangkok--Mar 15--SET
Listed firms on the mai (Market for Alternative Investment) are confident that the rising oil prices will pose no significant ill-effects on the companies’ operations. Nevertheless, they will more prudently manage their costs. The rising oil prices are expected to affect only the production costs relating to raw material and transportation.
President of the mai, Mr. Vichate Tantiwanich, disclosed that the mai has surveyed and received feedback from 18 mai-listed firms on “Effects from the rising oil prices on businesses”. These are comprised of 8 firms in the production sector and 10 firms in the service sector.
“From our questionnaire, more than half of the entrepreneurs in the production sector indicated that rising oil prices shouldn’t pose any significant problems for the companies’ operations. Only two companies stated that their operations’ performances might likely decrease. The majority of the entrepreneurs in the service sector haven’t changed their forecasts for their performances,” Mr. Vichate said.
However, in order to cope with the more expensive oil prices, executives of all mai-listed firms agreed that they would try to more prudently control and manage the costs.
Six out of eight entrepreneurs in the production sector saw the costs of raw material likely to increase by 2-3%. As for their transportation costs, they stated that this should increase by no greater than 5%. Most of them projected that there would be no greater than a 2% rise when the transportation costs took effect.
The ten entrepreneurs in the service sector, they all generally agreed that the consequences from the higher oil prices would be very marginal. Only two firms saw the costs of raw materials likely to increase by as much as 8-10%. Five of them expect the cost of transportation to rise by between 5-10%.
“If there are any ill-effects, they will most likely be indirect ones, such as increased costs of sales due, in part, to costs being passed on from their suppliers,” concluded Mr. Vichate.
Currently there are 23 listed firms on the mai. In 2004, they showed a total of THB1.035 bln. (approx. USD25.875 mln.) worth of net profits collectively. Their net profits jumped by an average of 29%. Their sales were recorded at THB14.6 bln. (approx. USD365.0 mln.) in total, up from THB11.191 bln. (approx. USD279.8 mln.) in 2003, or a 30% increase.
For more information,
please contact the Corporate Communication Dept.:
Ladawan Kantawong Tel: 0-2229-2036
Kulvida Jintakawong Tel: 0-2229-2037
Nattaporn Boonprapa Tel: 0-2229-2049
Watsamon Saowakhonsathien Tel: 0-2229-2797 End.