Message from Chairman and President & CEO

Key Strategic Business Segment Performance

Shipping Group

Thoresen Shipping always earns the trust and confidence of customers worldwide, despite being a Thai company with predominantly Thai personnel. In 2023, Thoresen Shipping secured a contract to supply coated steel pipeline transportation services for crude oil projects in East Africa spanning three years. Additionally, Thoresen Shipping serves clients in New Zealand, facilitating log transportation, and meets the increased demand for cement transportation services in the North Atlantic. Moreover, its Chartering office in London, United Kingdom, has demonstrated a positive contribution to the bottom line.

Thoresen Shipping remains profitable with freight revenues reported at Baht 7,369.6 million. The TCE rate continued to outperform the net Supramax market daily rate of US$ 10,678 by 27 percent. The owned fleet continued full utilization at 100 percent with the highest TCE rate of US$ 28,023 per day. In summary, Shipping group delivered net profits to TTA of Baht 1,528.4 million in 2023. At year-end, Shipping group owned 24 vessels (22 Supramaxes and 2 Ultramaxes) with an average size of 55,913 DWT and an average age of 15.7 years.

Offshore Services Group

Mermaid Maritime Public Company Limited or Mermaid has achieved unprecedented levels of performance. In 2023, Mermaid experienced income growth across all service functions, primarily attributed to expanding both the income and client bases into other regions. In addition, Mermaid has secured multiple new offshore project awards in Thailand, the Middle East, South Africa, Western Sahara, and the United Kingdom with a combined value of almost US$ 500 million. The project awards consist of cable laying, IRM (inspection, repair, and maintenance), T&I (Transportation and Installation), decommissioning, and a bouquet of related services which start in 2023 and are expected to be completed in 2025. Moreover, Mermaid has established a joint venture company, Tan Cang Mermaid Subsea Services Co., Ltd. (TCMS) in order to provide its comprehensive subsea and offshore services in Vietnam and throughout Southeast Asia.

In 2023, Mermaid revenues were recorded at Baht 9,628.6 million, which increased by 22 percent YoY from most service segments, especially subsea-IRM. Revenues from subsea-IRM significantly grew by 43 percent YoY due to an increasing subsea IRM short-term chartered-in vessel and non-vessel projects, and a higher performing subsea-IRM vessel utilization rate of 91 percent in 2023. Revenues from the decommissioning and transportation & installation (T&I) business also increased 28 percent YoY due to the service expansion in Thailand and Southeast Asia. In conclusion, Mermaid reported a net profit to TTA of Baht 199.9 million in 2023, with the recorded high order book at US$ 734.2 million at the year-end 2023.

Agrochemical Group

PM Thoresen Asia Holdings Public Company Limited, or PMTA faces the challenge of declining fertilizer prices. However, PMTA tackles this challenge by maintaining superior product quality standards compared to competitors, implementing effective inventory management practices, establishing clear policies for pricing and discounts, and leveraging a network of distributors in Vietnam alongside efficient online marketing strategies. These combined efforts enable PMTA to sustain a consistent profit margin.

In 2023, PMTA recorded revenue of Baht 3,778.8 million. Total fertilizer sales volume increased by 18 percent YoY to 169.3 Ktons. Domestic fertilizer, in Vietnam, sales volume accounted for 82 percent of total fertilizer sales volume amounting to 139.1 Ktons, increasing 47 percent YoY due to demand recovery in Vietnam. According to sales volume by product, single fertilizer sales volume increased 66 percent YoY to 41.6 Ktons, and NPK fertilizer sales volume also increased 8 percent YoY to 127.7 Ktons. Sales of pesticides were at Baht 285.5 million. Meanwhile, service income from factory management increased 9 percent YoY to Baht 109.5 million due to the warehouse expansion and higher warehousing demand. In summary, PMTA reported net profits to TTA of Baht 39.8 million.

Food and Beverage Group

Pizza Hut has significantly increased its advertising efforts. Consequently, the Pizza Hut brand has regained consumer attention and gained widespread recognition among consumers. In 2023, Pizza Hut introduced a groundbreaking concept store named Pizza & Bar, the first of its kind in Thailand and Asia, and the second globally, situated at Jungceylon, Patong, Phuket. Geared towards catering specifically to foreign customers and tourists, this innovative venture gained an exceptionally positive response. Pizza Hut has 185 outlets nationwide as of 31 December 2023.

In 2023, Taco Bell achieved profitability for the first time, an accomplishment attributed to refining its branch expansion strategy in residential areas on the outskirts of Bangkok and into gas stations. This strategy prioritized building brand awareness, trialing services and allowing direct access to target customers. Expanding into tourist cities like Pattaya and Phuket also proved highly successful, gaining positive feedback from patrons. Taco Bell has 25 outlets nationwide as of 31 December 2023.

Regarding to new business investment policy, TTA pays much attention to ventures aligned with global trends that demonstrate potential for growth and profitability, including the biomass energy business, electric vehicle business, and fintech business, among others.

Good Corporate Governance

TTA achieved the “Excellent” CG score or “5 stars” in the Corporate Governance Report of Thai Listed Companies (CGR) for 5 consecutive years, according to the survey conducted by the Thai Institute of Directors Association (IOD) in collaboration with the Stock Exchange of Thailand. This score reflects TTA’s consistent commitment to good corporate governance practices.

Finally, on behalf of the Board of Directors, we would also like to thank the management team and employees for their dedication to working at the height of their abilities despite facing various challenges this year. In addition, we would like to express our sincere gratitude to our shareholders, business partners, and other relevant stakeholders, all of whom play vital roles through their continued support and trust. TTA is committed to generating consistent and sustainable returns for shareholders. Above all, TTA will also look ahead to the business growth opportunities and continue to give priority to good corporate governance and sustainable development.