Bangkok--1 Mar--TTA
TTA’s Growth In 2007 To Be Supported By Its Three Core Businesses — Postponement Of Its Bond Issue Has No Effect On Its Financial Status
Thoresen Thai Agencies Public Company Limited (“TTA”) has reported that its three core businesses continue to show strong growth, enabling its net profit to exceed Baht one billion in the first quarter that ended on 31 December 2006. TC rates are expected to remain healthy for the entire year.
M.L. Chandchutha Chandratat, Managing Director of TTA, said that, based on the trends in the first quarter, there is a good probability that the Company’s revenues and profits in the financial year that will end on 30 September 2007 will be higher than the previous year’s revenues and net profits, which equaled Baht 17,057 million and Baht 3,502 million, respectively. The Company will continue to focus on its three main businesses, namely the Dry Bulk Shipping Group, the Offshore Services Group, and the Shipping Services Group.
The Company believes that its revenues and net profit growth will be driven by positive developments in the Dry Bulk Shipping Group and Offshore Services Group. The Dry Bulk Shipping Group continues to see strong freight demand, especially in China, India, and the Middle East. Furthermore, fewer deliveries of new buildings compared to last year means slower growth of the world’s dry bulk fleet. This year, it is expected that the growth of the world’s fleet should not exceed 6.50 per cent compared with last year's growth of 7.45 per cent. The Company's TC rates should remain at similar levels as the first quarter.
The Baltic Supramax Index (“BSI”) in the past six months has risen by 13 per cent. The increase in spot freight rates will have a positive effect on the Dry Bulk Shipping Group’s performance in the remainder of the 2007 financial year.
The Offshore Services Group, run by Mermaid Maritime Public Company Limited (“MMPLC”), should demonstrate good growth in 2007, because the day rates and asset utilization rates of the drilling rigs and sub-sea engineering vessels are likely to be higher due to strong demand for offshore oil and gas services.
The Shipping Services Group is likely to enjoy some growth for the entire year. Since the various shipping services businesses support most of the Company’s operations, such as stevedoring services and ship materials supplies, when shipping demand increases, it should lead to higher revenues in the Shipping Services Group.
“Our ongoing diversification strategy is benefiting from good market conditions in the Dry Bulk Shipping Group and Offshore Services Group.” M.L. Chandchutha said.
According to its first quarter financial results (October-December 2006), the Company posted a consolidated net profit of Baht 1,128.98 million, an increase from the net profit of Baht 927.56 million in last year’s first quarter. The growth in net profits was driven by stronger TC rates, foreign exchange gains, which were offset by vessel operating expenses. The Dry Bulk Shipping Group contributed 83 per cent of the Company’s net profits. The Offshore Services Group contributed 13 per cent of the Company’s net profits, and the Shipping Services Group contributed the remaining 4 per cent of the Company’s net profits.