Thoresen Thai Agencies Plc will continue to pursue acquisitions over the next two years, says M.L. Chandchutha Chandratat, managing director of the country’s largest dry bulk carrier.

The aim is to balance its three core businesses of transport, energy and infrastructure, he said.

Shipping accounts for 65% to 70% of TTA’s total revenue, with energy
contributing 25% and transport the rest. M.L. Chandchutha said the
company hoped to achieve a balance among the three operations by 2013.

The company is in negotiations to acquire additional overseas assets, with four or five deals ongoing, he said.

M.L. Chandchutha said the energy and infrastructure businesses had high
growth potential next year compared with shipping, in terms of
profitability. While these two businesses will contribute more income
next year, growth in shipping would decelerate due to plentiful supply
and sluggish demand.

“We have completed the three acquisition deals on target in this year
and the company will further search for new opportunities. Strong
cashflow and a low debt-to-equity (D/E) ratio will support the asset
buys,” he said.

The company has more than 6 billion baht in cash on hand, with its D/E
ratio low at 0.2 times, which could still be financially supported at
1.5 times. As a result, the company has more room to use debt to
facilitate business expansion.

TTA yesterday signed syndicated loan agreements worth a combined $200
million (about 7 billion baht) with four financial institutions.
Kasikornbank, the mandated lead arranger, will provide $100 million in
financing, Krung Thai Bank $50 million and the Export-Import Bank of
Thailand and Mizuho Bank $25 million each.

The loans will fund business expansions over the next two years
including asset acquisitions. For this year, TTA completed three
acquisitions including two takeovers, Unique Mining Services, a local
coal importer, and Baconco, a fertiliser manufacturer and distributor
in Vietnam. Merton Group, which owns coal mines in the Philippines, was
also acquired.

Both organic growth and acquisitions would be used for business expansion in 2010, M.L. Chandchutha said.

TTA reported profits of 352.62 million baht for the period to June 30,
third quarter of its financial year, down from profits of 2.04 billion
in the same period last year. Operating revenues totalled 4.9 billion
baht for the third quarter, with operating profits of 687 million,
compared with operating losses of 32.7 million for the three months
ending on March 31.

Nine-month profit for the period to June 30 was 1.348 billion baht,
compared with a profit of 6.72 billion in the same period last year.

Shares of TTA closed yesterday on the Stock Exchange of Thailand unchanged at 29 baht in trade worth 426 million baht.

Source: Bangkok Post

Search to find what you want

• Thai miner Banpu Q3 net up, beats forecast

    Thailand’s top coal miner, Banpu, said on Tuesday its third-quarter net earnings rose a higher-than-expected 22 percent, helped by better average sale prices. Banpu, also the fourth-largest coal miner in Indonesia, posted a net profit of 3.81 billion baht ($114.4 million), or 14.02 baht per share, compared with 3.11 billion

• Thai PTTEP Q4 net profit down, below forecasts

    Thailand’s PTT Exploration and Production PTTE.BK reported a larger-than-expected 32 percent fall in its fourth-quarter earnings on Friday, mainly due to higher costs related to an oil spill at Australia’s Montara field.

• Thoresen Thai unit to buy Unique Mining shares

    Thailand’s Thoresen Thai Agencies PCL TTA.BK said on Friday its wholly owned unit planned to buy a 48.46 percent stake in Unique Mining Services PCL UMSm.BK at a higher-than-market price of 23 baht each. The company’s wholly owned unit Hermelin Shipping will purchase Unique Mining shares from its two major shareholders

• Thailand: coal importer sees 20% volume growth

    Asia Green Energy Plc (AGE), a listed coal importer and distributor, expects its sales volume to rise by 20% to 1.2 million tonnes this year, in line with Thailand’s rising coal imports. Thailand’s coal imports last year increased in value by 3.5% year-on-year to 37.7 billion baht, accounting for about

• Thoresen Thai says acquisitions lift profits in 2010

    Thailand’s largest dry bulk carrier, Thoresen Thai Agencies, expects expansion through asset buys and acquisitions to drive profit up in 2010, although freight rates may not rise much from current low levels. The company, which targets at least a 15 percent return on capital within three to five years on

• Supply glut weighs on Precious Revenue

    Revenue at Precious Shipping Plc, Thailand’s second largest dry-bulk carrier, has plunged sharply this year because of an expected drop in time charter rates in line with the dry-bulk supply glut, says managing director Khalid Hashim. “This year’s time charter rates are expected to reach US$12,500 (414,874 baht) per day

• PSL scours secondhand market in order to secure growth

    SET-listed Precious Shipping Plc (PSL) expects its financial results to weaken in the final quarter and next year unless it acquires another second-hand ship. Thailand’s second-largest dry-bulk carrier would also miss its targeted earnings per ship per day of US$14,000 this year, managing director Khalid Hashim said yesterday

• Thai Banpu plans $ 466 million investment, to gently Outloo

    Banpu BANP.BK, Thailand’s largest coal miner, said on Wednesday it planned to invest $466 million over the next six years, but warned lower average selling prices in 2010 would mean just single-digit revenue growth.

• TTA diversified into coal mining

    Listed Thoresen Thai Agencies Plc yesterday announced the acquisition of a coal-mining venture in the Philippines, its second deal within a month under a business strategy aimed at offsetting shrinking shipping revenue. TTA yesterday informed the Stock Exchange of Thailand that it has acquired 21.18% of Merton Group (Cyprus) Ltd, the

• Lanna Thai miner sees flat 2010 plans to invest

    Lanna Resources, Thailand’s second-largest coal miner, said on Friday it expected net profit to be flat in 2010, held down by rising costs in its ethanol business, but there would be a big turnaround in 2011.Output in its coal business would continue to rise next year but soaring costs