TTA has established a policy to distribute dividends of at least 25% of the consolidated net profit after tax but excluding unrealised foreign exchange gains or losses, subject to the Company’s investment plans and other relevant factors. The Board may review and revise the dividend policy from time to time to reflect the Company’s future business plans, the needs for investment, and other factors, as the Board deems appropriate. However, dividend distributions may not exceed the retained earnings reported in the separate financial statements of the Company.
As of 23 August 2021, TRIS Rating affirmed the company rating on Thoresen Thai Agencies Plc. at “BBB” with “stable” outlook. The rating are supported by TTA’s solid financial metrics with low leverage and sizable cash reserves. The ratings also factor in TTA’s high business risk underpinned by the high level of uncertainty and volatility in its core dry-bulk shipping and offshore service businesses. The outlook revision reflects a strong improvement in TTA’s dry-bulk shipping business with a favorable outlook on demand and supply fundamentals over the next 12-18 months coupled with positive developments in TTA’s offshore service business performance.
TTA is a holding company that invests in other companies through shareholding. TTA’s strategic business portfolio is categorized into 5 business segments as follows:
- Shipping trades under the brand name “Thoresen Shipping”, which is an internationally acclaimed participant in the global dry bulk markets with roots going back over 110 years. Thoresen Shipping is 100% owned by TTA.
- Offshore Service provides subsea service such as Inspection, Repair, and Maintenance (IRM) work. Mermaid Maritime Plc. (“Mermaid”) is a flagship company, of which 58.2% of total paid-up capital is owned by TTA. Mermaid is a Thai company listed on the Singapore Exchange (SGX).
- Agrochemical produces and distributes fertilizer mainly in Vietnam under the “STORK” trademark, registered in Vietnam since 2005 and highly-recognized and credited for quality and reliability. This segment is represented by PM Thoresen Asia Holdings Plc. (“PMTA”), a listed company on the Stock Exchange of Thailand (SET). TTA owns 68.5% of its total paid-up capital.
- Food & Beverage has 2 brand under management. Pizza Hut is operated as a 70%-owned subsidiary of TTA, the only Pizza Hut franchisee in Thailand. As of 31 December 2020, there were 169 outlets nationwide. Another brand is Taco Bell, the leading American restaurant chain serving a variety of Mexican inspired food, is operated as a 70%-owned subsidiary of TTA. As of 31 December 2020, there were 8 outlets nationwide.
- Investment comprises of all other businesses, which are not categorized in the above four core businesses. Some examples are water, and logistics including port and warehouse services.
Approximately 85% of total revenues came from Shipping, Offshore Service, and Agrochemical Segments. In first 9 months of 2021, total revenues were recorded at Baht 14,521 million. Shipping, Offshore Service, Agrochemical, Food & Beverage and Investment contributed 54%, 15%, 16%, 10%, and 5% to the consolidated revenues, respectively.
As of 30 September 2021, Shipping segment owned 24 vessels (22 Supramax and 2 Ultramax) with an average size of 55,913 DWT and an average age of 13.46 years.