Briefs

Sahaviriya Steel Industry through its subsidiary SSI UK has entered a comprehensive financing agreement with new partner Vanomet Holding along with financial institutions, with the provision that the company’s debt-to-equity ratio drops to 1.6 times from 3.1 times.
Under that condition, the company signed an agreement with financial institutions for loan support, which was changed from short-term to long-term with tenure of three years. In addition, Vanomet, the world’s leading steel trader, has agreed to participate in SSI UK with an investment not exceeding US$170 million (Bt5.34 billion). Of that, $100 million will be in the form of short-term loans and the rest a loan for working capital.
SSI will also issue new common shares at an amount not exceeding $413 million. – The Nation

THAI posts Q2 loss
Thai Airways International has suffered a loss of Bt1.53 billion in the second quarter after revenue fell by Bt5.9 billion or 11.0 per cent.
In a filing to the Stock Exchange of Thailand yesterday, the national carrier noted that a promotion campaign designed specifically for the low season when passenger demand is diminished had caused lower revenue than in the first quarter.
The repair of a runway at Suvarnabhumi Airport in June also caused flight delays and increased expenses.
In the first quarter, THAI earned Bt3.64 billion, which was enough to keep its first six months in the black with a net profit of Bt2.11 billion against the net loss of Bt7.25 billion in the same half last year.

Exim Bank’s profit up
Exim Bank’s loans and profit rose in the first half.
Kanit Sukonthaman, president of Export-Import Bank of Thailand, said yesterday that in the first six months of the year its overall operating results met its performance targets both in the promotion of export, import, domestic and overseas investment and support of small and medium-sized enterprises lacking access to finance.
From January to June, Exim Bank’s new credit approvals reached Bt12.62 billion, bringing total loan approvals to Bt165.71 billion. Total loans outstanding increased by 6.5 per cent to Bt65.17 billion.
Net profit increased from the corresponding half of last year by 69 per cent to Bt510 million. By emphasising management, the bank saw a decline in its non-performing loans of 0.35 percentage point of total loans at year-end 2011 to 4.75 per cent as of the end of June. The bad-debt provision ratio to NPLs as of the end of June stood at 104.07 per cent, increasing from 89.93 per cent as of end-2011.

Car loans boost net
Ratchathani Leasing’s second-quarter net profit jumped by 86.16 per cent to Bt89.97 million thanks to car-loan expansion.
The company reported to the Stock Exchange of Thailand that total revenue for the second quarter increased 96.13 million or 35.38 per cent to Bt367.82 million.
Outstanding vehicle instalment loans increased to Bt14.72 billion from Bt10.75 billion in the second quarter of last year.
However, financing costs consisting of interest payable and loan fees in the second quarter increased to Bt166.87 million from Bt33.20 million last year.

KTC enjoys post-flood gains
Krungthai Card showed a net profit in the second quarter of Bt86 million, which is the first since witnessing losses from the flood.
In the past two quarters, KTC suffered huge losses due mainly to the flood. CEO Rathian Srimongkol said early this year that the company must focus on reducing operating expenses if it wanted to enjoy a profit. He forecast KTC returning to the black in the second quarter.
The second-quarter net profit of Bt86 million came from operating expense reduction, debt collection and debt management to prevent non-performing loans. NPLs from credit cards and personal loans have gradually improved.
The company is confident of earning a profit this quarter thanks to the cost-management policy. – The Nation

Paper dumping charge dropped
Indonesian paper manufacturers have been freed from a dumping allegation made last year in Thailand, which will allow them to get back their grounding in the market, after an investigation found no indications of dumping.
The Indonesian Trade Ministry’s trade defence director, Ernawati, said yesterday that five producers of coated paper and paper boards, all under major paper maker Sinar Mas Group, would not be hit with an anti-dumping duty, which would boost Thai buyers’ confidence to purchase the products from Indonesia again.
As stipulated by the rules of the World Trade Organisation, anti-dumping duties can be collected by a country against imports of goods from other countries to counter impacts of dumping, with which exporters sell products in overseas markets at prices lower than their production costs and/or lower than the actual prices in their home market.
“As the dumping allegation on Indonesian coated paper and paperboard has been removed, the government expects exports of the two products can rebound to the level before 2011,” Ernawati said.
Although Thailand had yet to determine a dumping margin or impose an anti-dumping duty, exports of the two items had dropped after the allegation. Buyers in Thailand stopped making new orders from Indonesian manufacturers on fears that the duty could be effective soon, Ernawati said. – The Jakarta Post/ANN
 
FPI plans IPO
Fortune Parts Industry, the leading automobile replacement and original equipment manufacturer, plans to float 63 million shares this quarter in an initial public offering.
The company yesterday appointed Finansia Syrus as its underwriter.
FPI will be listed on the Market for Alternative Investment. The IPO proceeds will be used for expansion and refinancing and working capital. – The Nation