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 any business it invests in, expects net
profit and revenue in 2013 to be double its 2008 peak thanks to this
aggressive expansion, Managing Director Chandchutha Chandratat told
Reuters on Tuesday.

“What we’re doing is trying to look for businesses that can add value
to what we have, whether it is in transportation, energy or
infrastructure,” Chandchutha said in an interview.

“It really is our internal target to beat that estimate in 2013,” he said.

Thoresen Thai, which competes with bigger rivals China COSCO and
Malaysia’s MISC Bhd, has 35 ships with a combined capacity of 26,862
deadweight tonnes.

It is the fourth-largest player by market value in the region after
Malaysia’s MISC, Singapore’s NOL and Malaysian Bulk Carriers Bhd.

Twelve analysts polled by Thomson Reuters I/B/E/S forecast a net profit
of 2.15 billion baht ($64.8 million) in 2010, up 43 percent from 1.5
billion expected this year.

In 2008, Thoresen Thai reported its best performance since the firm was
set up, as net earnings surged 77 percent to 8.87 billion baht and
revenue rose 73 percent to 34.4 billion baht.

The company is to sign an agreement on Thursday for a $200 million
syndicated loan from four banks, purely for takeover activities,
Chandchutha said.

“We’re now in talks on four potential (foreign) deals. It could really
be joint ventures or takeovers, in various sizes, ranging from millions
to billions,” he said, declining to give more details.

Thoresen Thai would also be looking to buy cheap, second-hand ships
after the global downturn pushed dry bulk ship prices down to cheap
levels.

Source: Reuters

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