Bulker sector drives TTA

Thoresen Thai Agencies Plc (TTA) has announced a strong performance in the third quarter of this year, driven by the bulker sector.

TTA reported third-quarter earnings in 2018 had consolidated earnings before interest, tax, depreciation and amortisation (Ebitda) of 545 million baht, increasing 42% year-on-year and 36% quarter-on-quarter.

Consolidated net profit was 148.3 million baht, up 202% year-on-year and 57% quarter-on-quarter.

TTA said the improved freight market and better vessel utilisation resulted in an increase of consolidated net profits of 148.3 million baht.

The company’s shipping segment achieved an average time charter equivalent (TCE) rate in the third quarter of US$11,529 per day, outperforming the net market TCE rate.

In the third quarter, TTA’s consolidated revenues were 3.54 billion baht, increasing 14% year-on-year and 5% quarteron-quarter. Its shipping, offshore service, agro-chemical, and investment segments contributed 37%, 27%, 20% and 16% to consolidated revenues, respectively.

Gross profits amounted to 944 million baht, increasing 25% year-on-year and 25% quarter-on-quarter.

TTA’s cash under management was 5.14 billion baht, with net interest-bearing debt-to-equity at 0.13 times as of Sept 30, 2018.

“This year saw an improved balance of fundamentals in the bulker sector. In the third quarter, the shipping segment reported net profits of 242.2 million baht, 226% growth year-on-year,” said Chalermchai Mahagitsiri, chief executive of TTA.

“More positive news was the increase in the Baltic Dry Index, which rose to an average of 1,607 points in the third quarter from 953 points at the beginning of 2017 because of limited growth in the dry bulk fleet.

“The shipping segment’s average TCE rate of $11,529 per day also outperformed the net Supramax average TC rate of $10,982.

“In spite of some remaining risks, shipping analysts expect bulker supply and demand to be fairly balanced towards 2019.”