Thoresen Thai Agencies (TTA) said on 14 November that it had a THB49.14 million (USD1.46 million) net profit for the third quarter of 2017 as the Thai conglomerate’s dry bulk shipping business continued to ride a firming market during the period.
This was more than a seven-fold increase from the third quarter of 2016 when TTA posted a THB6.93 million net profit.
Cumulatively, TTA, which is also active in the offshore and marine sector, coal mining and fertiliser trading, had THB351.07 million profit for the first nine months of 2017, improving from a THB254.37 million loss in the previous year.
The group’s shipping unit, represented by Thoresen Shipping Group, saw revenue up 10% from the third quarter of 2016 to THB 896.3 million, as time-charter equivalent (TCE) earnings rose to USD8,288 per day during the third quarter of 2017 from USD5,473 per day during the same period last year.
“Continued uptrend in freight market was reflected in higher Baltic Dry Index [BDI] from its 30-year lowest point at 290 in February 2016 to an average of 1,137 in the third quarter of 2017. Since TCE rate increased year on year and the operating cash cost remained flat year on year at USD5,077 per day, gross margins rose significantly from 10% in the third quarter of 2016 to 29% in the third quarter of 2017,” said TTA.
Thoresen Shipping Group saw net profit surge 133% from the third quarter of 2016 to THB 74.2 million in the third quarter this year, as strong Chinese iron ore imports underpinned the BDI.
The shipping business has been renewing its fleet with the acquisition of modern secondhand tonnage, having acquired the Thor Confidence and Thor Courage in July and October.
Thoresen Shipping is also reportedly negotiating to buy a 2010-built 58,000 dwt Supramax bulker, Spring Eagle, from Japan’s Nissen Kaiun, for USD15 million.
Flat demand for offshore support vessels has persisted, resulting in TTA’s subsidiary Mermaid Maritime incurring a THB39.6 million net loss in the third quarter of 2017, as vessel utilisation fell to 42% during the period, from 86% in the third quarter last year.
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Source: IHS
