THORESEN THAI AGENCIES TTA
IR NEWSLETTER
1Q2024 | May 2024
In this issue
01 - CEO Talk
02 - 1Q2024 Performance
03 - Corporate News
04 - Upcoming Events
CEO TALK
"TTA's first quarter results indicate the trend of steadily improving cashflow and profitability. Despite disruptions to trading patterns caused by hostilities in the Red Sea, growing geopolitical tensions in the Persian Gulf, and the continuing war in Ukraine, we are pleased with the business performance of Shipping and Offshore Service Segments. Thoresen Shipping continued to outperform the market in Q1/2024. In addition, Maritime Advisors, Liengaard & Roschmann have recently published their "Vesselindex Performance Report", ranking the listed dry bulk companies based on their TCE performance and Thoresen Shipping achieved at the top three of the ranking, outperforming the market at USD 3,790, or 38.6%.
Meanwhile, Mermaid continued to perform well in subsea-IRM and decommissioning and T&I projects. Therefore, we remain confident that there are opportunities for Mermaid to sustain and extend its presence in the subsea business sectors in Thailand, the Middle
East, and the UK."
THORESEN THAI AGENCIES PUBLIC COMPANY LIMITED
Mr. Chalermchai Mahagitsiri
President & Chief Executive Officer
Please Contact IR for more information: | 1 | ||
+66 (0) 2254 8437 Ext. 315, 207 and 127 | Investors@thoresen.com | http://www.thoresen.com | |
26/26-27 Orakarn Building, 8th Floor, Soi Chidlom, Ploenchit Road, Kwaeng Lumpinee, Khet Pathumwan, Bangkok 10330 Thailand | Page |
TTA Group Performance 1Q2024
Unit: Million Baht | Performance Highlights: |
Revenues (1)
4,766
+37%YoY -2%QoQ
6,641 6,523
Shipping | Offshore Service | |
1,690 MB or 26% | ||
Revenues(1) | 3,139 MB or 48% | |
Investment | 6,523 MB | |
417 MB or 6% | ||
Food & Beverage | Agrochemical |
1Q/23 4Q/23 1Q/24
Gross Profits/(Losses) (2)
565 MB or 9% | 712 MB or 11% |
In 1Q/24, TTA reported revenues of Baht 6,523 million, which increased 37%YoY mainly from Offshore
1,094
+61%YoY
+2%QoQ
1,720 1,758
Service segment and Agrochemical segment but revenues slightly decreased 2%QoQ due to lower fertilizer sales from Agrochemical segment. Cost of sales and providing services(2) increased 30%YoY to Baht 4,765 million in line with revenue growth but decreased 3%QoQ. As a result, gross profit increased 61%YoY and 2%QoQ to Baht 1,758 million. The gross profit margin also increased from 23% in 1Q/23 and 26% in 4Q/23 to 27% in 1Q/24 due to the improved margin of Shipping segment resulting from the higher TCE rate. Meanwhile, there were realized/unrealized gains on investment of Baht 68 million which mainly from unrealized gains on investment in marketable securities. SG&A increased 14%YoY mainly from employee expenses and transportation expenses of Agrochemical segment but decreased 7%QoQ. Accordingly, EBITDA increased 112%YoY and 7%QoQ to Baht 1,255 million. In addition, there were realized/unrealized gains
1Q/23 4Q/23 1Q/24
EBITDA (3)
+112%YoY
+7%QoQ
from foreign exchange of Baht 624 million mainly from unrealized gains from US dollar loans to related parties and US dollar short-term investment following US dollar appreciation against Thai Baht. In summary, TTA reported strong net profits of Baht 1,116 million, significantly increased by 419%YoY and 43,857%QoQ.
Shipping Outlook:
(4)
1,176 1,255
592
1Q/23 4Q/23 1Q/24
Net Profits/(Losses) to TTA
+419%YoY
+43,857%QoQ
1,116
215 (3)
1Q/23 4Q/23 1Q/24
Note: (1) Revenues from sales and services
- Including amortization of vessel drydocking but excluding depreciation and other amortization
- Earnings before interest, tax, depreciation, and amortization (excluding extraordinary items)
- TC Avg BSI is based on BSI-52 index up through 4Q/18 and BSI-58 index from 1Q/19 onwards, to be comparable with the fleet size of Shipping segment.
Source: Clarksons Research, April 2024
Baltic Supramax Index (BSI) averaged 1,178 points in 1Q/24, increased from an average of 925 points in 1Q/23 due to a strong export of key commodities and the re-routing of vessels away from the Red Sea driving the dry bulk carrier demand. Clarksons Research forecasts dry bulk trade growth in 2024 at 1.6% in tons or 2.4% in ton-miles. Dry bulk trade growth is driven by minor bulk trade (+3.7%) and grain trade (+2.1%), while iron ore trade remains stable (0.0%) and coal trade declines (-0.2%). On the other hand, the bulker supply (+2.9%) appears moderately balanced, with the limited order book at 9% of fleet capacity. Additionally, compliance with emissions regulations (e.g. EEXI, CII) is expected to continue shaping the bulker supply, with 25% of bulker fleet capacity estimated to have received a D or E rating for CII in 2023. This could lead to the adoption of slower operating speeds, higher retrofitting, and increased demolition of older ships. Looking ahead to 2025, the bulk carrier sector supply-demand balance initially appears slightly softer. Dry bulk trade is projected to grow by 1.5% in ton-miles, but fleet growth is estimated at 2.4%, given slower speeds and other impacts from environmental regulations.
THORESEN THAI AGENCIES PUBLIC COMPANY LIMITED
Please Contact IR for more information:
+66 (0) 2254 8437 Ext. 315, 207 and 127 | Investors@thoresen.com | http://www.thoresen.com |
26/26-27 Orakarn Building, 8th Floor, Soi Chidlom, Ploenchit Road, Kwaeng Lumpinee, Khet Pathumwan, Bangkok 10330 Thailand
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TTA AT A GLANCE | Business Portfolio |
About TTA
Thoresen Thai Agencies Public Company Limited, or TTA, is a strategic investment holding company that is listed on the Stock Exchange of Thailand (SET), with an investment policy to achieve growth through a balanced portfolio that is diversified both locally and internationally. Included in its current business portfolio are Shipping, Offshore Service, Agrochemical, Food & Beverage, and Investment segments.
Symbol | : | TTA:TB | | TTA:BK | |
Market | : | SET | ||
Industry/ Sector | : | Services/ Transportation & Logistics | ||
First Trade Date | : | 25 Sep 1995 | ||
CG Score | : | Excellent (5 stars) | ||
Thai CAC | : | Certified | ||
Share Outstanding | : | 1,822,464,564 Shares | ||
(Par at Baht 1.00 per share) | ||||
Foreign Limit | : | 49% | ||
Dividend Policy | : At least 25% of the consolidated net | |||
profits | after | taxes but excluding | ||
unrealized foreign exchange gains or | ||||
losses, subject to the Company's | ||||
investment plans and other relevant | ||||
factors (with additional conditions) |
TTA
24
Vessels
7
Performing
Vessels
HIGH
Quality
Fertilizer
186
Outlets
26
Outlets
- Dry Bulk Shipping
- Subsea Services
- Cable Laying
- Decommissioning
- Fertilizer
- Pesticides
- Factory Area Management Service
- Pizza Hut
- Taco Bell
- Water Management
- Logistics
- Solar Rooftop
- Others
As of March 31, 2024
Shipping Offshore Service Agrochemical Food & Beverage Investment
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Disclaimer
This IR newsletter ("Newsletter") is not a prospectus and is not intended to and does not constitute offer or solicitation of any offer in respect of securities. It does not constitute any recommendation or investment advice, is not intended to form the basis of an investment decision and should not be relied upon for such purpose. This Newsletter has not been approved by any regulatory authority. Neither TTA nor their respective advisors accept any liability whatsoever arising in connection with the distribution of this Newsletter to recipients hereof. This Newsletter is being supplied to you solely for your information and may not be reproduced or modified in whole or in part, for any purpose.
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- 1Q2024 Earning Results
- 1Q2024 Analyst Meeting
- 1Q2024 SET's Opportunity Day
- SET Digital Roadshow 1Q2024
THORESEN THAI AGENCIES PUBLIC COMPANY LIMITED
Please Contact IR for more information:
+66 (0) 2254 8437 Ext. 315, 207 and 127 | Investors@thoresen.com | http://www.thoresen.com |
26/26-27 Orakarn Building, 8th Floor, Soi Chidlom, Ploenchit Road, Kwaeng Lumpinee, Khet Pathumwan, Bangkok 10330 Thailand
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Thoresen Thai Agencies pcl published this content on 17 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 May 2024 07:20:02 UTC.
