TTA Board approves THB0.50 year-end cash dividend Nominates Ex-PTT CEO Mr.PrasertBunsumpun and CPN CFO Mr. Naris Cheyklinasas directors
Bangkok, Thailand, 22 December 2011 -- The Board of Directors of Thoresen Thai Agencies Plc ("TTA") held a board meeting on 21 December 2011 and approved a recommendation by management to pay a THB0.50cash dividend for FY2011. The total dividend ofTHB354 millionis 2.5 times TTA's consolidated earnings of THB139 million in FY2011 and represents a yield of 2.68% based on its average share price in 2011.
The dividend will be paid to shareholders whose names appear on the Company's share register book on 8February 2012, with payment to be made on 23 February 2012. The resolution is subject to shareholders' approval at TTA's upcoming Annual General Meeting("AGM"), which will be held on 31 January 2012 at the Bangkok Convention Centre, Centara Grand Hotel.
"The total dividend payment represents over 250% of our consolidated earnings in FY2011, underscoring our strong cash position, improved prospects for our businesses, and a commitment to reward our shareholders first and foremost," said M.L. Chandchutha Chandratat, President & CEO of TTA. "We madesome major changes in 2011 and, barring a prolonged economic slowdown expect improved operating results in 2012 from dry bulk, Mermaid and UMS. At the same time, Baconco's fertiliser and logistics business, Baria'sdeep-water port business, and Petrolift's tanker business are expected to continue their strong performances next year.
"Most importantly, all of these business units are expected to generate enough cash flows to fund their own operations and growth in FY2012, allowing TTA to manage its resources in a manner that balances both dividends and future growth initiatives."
The 2.68% yield compares favourably to the yield on a one-year fixed deposit rate, which averaged 2.19% in 2011 among Thailand's four largest banks.The yield is also in line with that of SET High Dividend stocks.
"The investment phase of our diversification strategy is complete, and the focus now turns to managing and reaping the rewards of our portfolio of transport, energy and infrastructure businesses. The change in focus means that even after this dividend pay-out, we will have ample funds to support our vertical expansion." concluded M.L. Chandchutha.
The Board also approved the re-election of three out of the four directors whose terms will expire in January 2012 including Mr. Aswin Kongsiri, Prof. Athueck Asvanund and Dr.Warapatr Todhanakasem. As a result of Dr. Siri Ganjarerndee's intention to retire from his position, the Board nominated Mr. Naris Cheyklin to succeed him. The Board also approved the nomination of one additional director, Mr. Prasert Bunsumpun. The number of Board members will increase from ten directors to eleven.
Mr. Naris Cheyklin is Senior Executive Vice President & CFO of Central Pattana Public Company Limited. He was previously Senior Vice President of Siam City Bank Public Company Limited.
Mr. Prasert Bunsumpun, formerly President & CEO of PTT Public Company Limited, is Chairman of IRPC Public Company Limited, PTT Global Chemical Public Company Limited and Thai Lube Base Public Company Limited. .
The re-elections of Mr.Kongsiri, Prof. Asvanund and Dr.Todhanakasem, as well as the appointments of Mr.Cheyklin and Mr.Bunsumpun will also be subject to shareholders' approval on 31 January 2012.
TTA's Board and management encourage all shareholders to exercise their rights and ensure their wishes are represented by personally attending the AGM or using the proxy form provided by the Company, in which all agenda items are detailed.
Thoresen Thai Agencies Public Company Limited (TTA) is a strategic investment holding company listed on the Stock Exchange of Thailand (TTA:TB). Its investment strategy is to grow through a balanced and diversified business portfolio of transport, energy, and infrastructure assets, both domestically and internationally. TTA's evolution from a dry bulk shipping operator began in 2005 with an investment in subsea engineering firm Mermaid Maritime Public Company Limited, which has since been listed on the Singapore Stock Exchange (MMT:SP). Since then, TTA has acquired interests in fertiliser and logistics (Baconco Co., Ltd.) coal-related businesses (SKI Energy Resources Inc, Merton Group (Cyprus) Limited and Unique Mining Services Public Company Limited), petroleum tankers (Petrolift, Inc) and a port in Southern Vietnam (Baria Joint Stock Company of Service for Import Export of Agro Forestry Products and Fertilizers).