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TTA steams back into black on higher rates

Friday, 24 February 2012 | 00:00
Thoresen Thai Agencies (TTA) projects a return to profitability in its second fiscal quarter ending March 31, while full-year revenue will grow by 10-15%.
Thitima Rungkwansiriroj, the company's chief financial officer, said TTA projects freight rates in the second quarter will improve to US$11,500 per bulk per day from between $8,000 and $9,000.
The company can break even at $10,000 per day.
"If we're right, the rate will be higher than expected in the next quarter, helping us to return to black," said Mrs Thitima.
TTA posted a loss in the first fiscal quarter ending Dec 31 due to sluggish shipping demand.
Mrs Thitima said the company's shipping traffic will remain low in this quarter, but revenue will improve helped by increased shipping demand from the energy sector.
But she acknowledged the shipping business would continue rendering a slightly negative result.
Unique Mining Service, a firm taken over by TTA, will resume operations next month after last year's flood crisis disrupted business.
Mrs Thitima said TTA plans to double its number of vessels to 30 next year.
She said the new major shareholder, Chalermchai Mahagitsiri with a 17% stake in TTA, has four of 11 board seats.
TTA posted a loss of 560 million baht in the first fiscal quarter against a net profit of 145 million a year earlier.
Mrs Thitima attributed the loss to a 55% fall in freight charges and the number of TTA vessels being reduced.
Most of the first-quarter loss arose from two extraordinary non-cash expenses _ writing off the management and commitment fees on a syndicated loan secured in 2007 and impairment charges on assets.
TTA shares closed yesterday on the Stock Exchange of Thailand at 20.10 baht, unchanged, in trade worth 20.2 million baht.
Source: Bangkok Post
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