In a recent development, Thoresen Thai Agencies Public Company Limited (TTA) announced an improved performance report in 3Q/2018 (1 July – 31 October 2018) with consolidated EBITDA at Baht 545.0 million, increasing by 42% YoY and 36% QoQ, says a press release published on their website.
Key points of the report
- The consolidated net profit was reported at Baht 148.3 million, increasing 202% YoY and 57% QoQ.
- In 3Q/2018, consolidated revenues were recorded at Baht 3,544.4 million, increasing 14% YoY and 5% QoQ; Shipping, Offshore Service, Agrochemical, and Investment segments contributed 37%, 27%, 20% and 16% to the consolidated revenues, respectively.
- Meanwhile, Gross profits amounted to Baht 944.2 million, increasing 25% YoY and 25% QoQ.
- TTA maintained a strong balance sheet with cash under management of Baht 5,142.9 million and strong capital structure with low net-interest-bearing-debt to equity at 0.13 times as of 30 September 2018.
What does this imply?
Mr. Chalermchai Mahagitsiri, TTA President and Chief Executive Officer, said “The year 2018 has seen the improved balance of fundamentals in bulker sector. In 3Q/2018 Shipping Segment reported net profits to TTA of Baht 242.2 million which is a 226% growth YoY. Another positive news is the increase in Baltic Dry index (BDI) which rose to an average of 1,607 points in 3Q/2018 from 953 points at the beginning of 2017, due to limited growth in dry bulk fleet. Our Shipping Segment’s average TCE rate of US$ 11,529 per day also outperformed net Supramax average TC rate (net Mkt TC Avg BSI) of US$ 10,982. In spite of some remaining risks, shipping analysts expect bulker supply and demand to be fairly balanced toward the year 2019.
The Offshore Service Segment recorded revenues of Baht 970.0 million in 3Q/18 which is a 41% increase QoQ. The increase was due to higher vessel utilization rate and no vessel off-hired for dry docking like in the last quarter. Brent crude oil price rose from an average of US$ 55/bbl in 2017 to an average of US$ 76/bbl in 3Q/2018; however, the market outlook is still volatile. Nevertheless, Mermaid Maritime has an outstanding order book of US$ 129 million and continues to see an ever increasing tendering activity especially in the Middle East.
This year, farmers in Vietnam have suffered from low agricultural price over major crops and fruits, so they have been concerned to save costs rather than to improve yield, and preferred to use more single fertilizer. Nevertheless, PMTA was able to maintain total fertilizer sales volume YoY to 44.5 KTons in 3Q/2018, 68% of which were domestic fertilizer sales volume.
Furthermore, the first nine months of 2018 also saw the total fertilizer sales volume increased by 5% YoY to 144.8 KTons. Meanwhile, the factory area for leasing business was able to operate efficiently.”
Future Investments
For new investment, PHC, the sole franchisee of Pizza Hut business in Thailand, had 126 outlets nationwide, as at 30 September, 2018. Moreover, Siam Taco Company Limited (“STC”) plans to open the first Taco Bell outlet in December 2018. For Water Management business, TTA acquired 80.5% stake in AIM to create synergy with existing Water Business.
Looking forward to the end of 2018, TTA aims to maintain a positive momentum and further improvement in organic revenue growth.
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Source: Thoresen
