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Thoresen projects 10% growth in revenue

Back Feb 24, 2007

Thoresen Thai Agencies Plc (TTA) expects revenue growth of 10% this year, from 17 billion baht last year, in line with increasing freight rates, according to M.L. Chandchutha Chandratat, the managing director of the SET-listed dry-bulk shipping service provider.

He said that the company's gross margin was expected to increase to 24% from 18% last year.

M.L. Chandchutha forecast an increase in the average freight rate to US$12,789 per day per ship this year, from $11,459 last year.

For 2007, he said, the company planned to invest $44 million to expand its fleet from 45 ships currently. This month, TTA bought one ship worth $37 million, and it has contracted with a shipmaker for two more vessels worth about $35 million each.

The company is seeking to reduce the average age of its fleet, currently 17.5 years, with some vessels more than 25 years old.

Recently, the firm sold a 30-year-old ship for a profit of 23 million baht that will be realised in the current quarter.

M.L. Chandchutha said the company had no plan to list its affiliate, Mermaid Maritime Plc (MML), which was recently transformed into a public company. But he conceded that the status change could pave the way for further fund-raising through various means.

Last year, TTA spent 1.17 billion baht increasing its shareholding in MML to 63.14% from 50% to take control of the company, which has expanded into the offshore maritime business.

MML spent 2.21 billion baht last April and July to purchase two tender drilling rigs and one specialised diving support vessel to support offshore oil and gas exploration in the region.

TTA shares closed yesterday on the SET at 28.50 baht, up 50 satang, in trade worth 161.2 million baht.

 

Source: Bangkok Post
Saturday February 24, 2007