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TTA announces Q2 results with strong shipping performance

Aug 14. 2019
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Thoresen Thai Agencies Public Co Ltd or TTA on Wednesday reported consolidated second quarter revenues of Bt3.68 billion to the SET, a 9 per cent bump year on year due to increased revenues from three of its main business segments.

The company’s shipping, offshore service and agrochemical segments contributed 40 per cent, 21 per cent and 24 per cent respectively to the company's consolidated revenues. TTA also recorded Bt672.0 million in gross profit, a slight increase quarter on quarter, while EBITDA remained positive at Bt212.9 million.

In summary, TTA had a normalised net loss before gain from foreign exchange of Bt91.7 million and a consolidated net loss of Bt174.3 million in this year’s second quarter.

Chalermchai Mahagitsiri, the president and CEO, said: “The shipping segment has consecutively delivered profits since 2017; its TCE rate outperformed the net Supramax TC rate. Meanwhile, the agrochemical segment had a profit turnaround from last quarter as demand has picked up seasonally, and focus marketing strategies were aggressively implemented. Under a highly competitive environment, the offshore service segment’s net loss to TTA improved as vessel working days and the vessel utilisation rate increased.

“In addition, the strengthening Thai Baht resulted in losses from foreign exchange, mostly considered unrealised, compared to gains in the second quarter of 2018,” said Chalermchai.

“In summary,” said Chalermchai, “TTA reported a normalised net loss before gain [loss] from foreign exchange of Bt91.7 million and a consolidated net loss of Bt174.3 million in the second quarter.”

Looking ahead to the next quarter, a company release said it expects that the Baltic Dry Index (BDI) will continue in an upward trend due to the restart of the Vale mine in Brazil, which has been shut after a tailing dam collapse in late January. Meanwhile, the company’s offshore service segment will focus on increasing operational efficiency and minimise loss, and has an order book worth US$73 million to be performed. As well, its Middle East and Southeast Asian business units have recently been awarded subsea contracts. The company’s agrochemical segment will continue to drive growth in the export market. In the food and beverage segment, Pizza Hut and Taco Bell will continue their store expansion strategy to achieve targeted profitability in the future.

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