THORESEN THAI AGENCIES TTA CORPORATE| TTA Transport |TTA Energy| TTA Infrastructure
TTA set for growth, reports net profits of THB 1,015 million, the best full year performance in five yearsBangkok, Thailand, 27 November 2014 -- Thoresen Thai Agencies Public Company Limited ("TTA") announced net profit of THB 1,015 million for its 2014 fiscal year that ended on 30 September 2014, compared with a net loss of THB 5,199 million in FY
2013.
This represents TTA's best net profits in five years since 2009, with particularly solid improvements across the group.
Total Revenues increased 16% year-on-year to THB 21,431 million. Normalized net profits increased 507% year on year to THB 1,028 million (excluding impairments and writes-offs of THB 13 million).
Mr. Chalermchai Mahagitsiri, President and CEO of TTA said, "2014 was a strong year for TTA. We delivered growth across all metrics at the Group level.
Significant progress was made through strategic investments across all core groups. We increased our holding in Mermaid Maritime and commissioned the construction of two new tender rigs and a new dive support vessel; we expanded Thoresen Shipping's capacity and geographical footprint through the acquisition of six additional Supramax vessels, and the opening of a new office in South Africa; and we increased the capacity of Baconco's export production line."
Tra ns port | Energy | Infra s tructure | ||||||
Thoresen Shipping | Mermaid Maritime | UMS | Baconco | |||||
Baht millions | FY13* | FY14 | FY13* | FY14 | FY13* | FY14 | FY13* | FY14 |
Revenues | 4,747 | 6,887 | 8,243 | 10,088 | 1,931 | 1,038 | 3,229 | 3,192 |
EBITDA | 495 | 1,150 | 1,520 | 2,495 | 19 | 23 | 365 | 457 |
EBITDA margins | 10% | 17% | 18% | 25% | 1% | 2% | 11% | 14% |
Net profits | (4,194) | 355 | 539 | 1,459 | (378) | (136) | 253 | 345 |
Net profit margins | ‐88% | 5% | 7% | 14% | ‐20% | ‐13% | 8% | 11% |
Net profits to TTA | (4,194) | 355 | 314 | 832 | (335) | (120) | 253 | 345 |
Outperform industry in revenue and cost.
1,150
495
355
355
1,15
0
(4,194)
Solid performance from high‐
margin long‐term contracts.
2,495
1,52
1,5020
1,434
1,45
9
Rebalance capital structure and excessive inventories.
19 23
(136) (136
)
Solid sale volume with improved profit margins.
457
365
345
253
EBITDA &
Net profits
* Res ta ted
( 4,194)
FY13* FY14
539
FY13* FY14
(378)
FY13* FY14
FY13* FY14
8th Floor, Orakarn Bldg. 26/26-27 SoiChidlom, Ploenchit Road, Lumpinee, Pathumwan, Bangkok 10330 Thailand REG. NO. 0107537002737
T: +66 2250-0569, 2254-8437 F: +66 2655 5630 E: tta@thoresen.comwww.thoresen.com
Page 2Energy
Mermaid Maritime delivered its strongest year since establishment, with a 165% increase in full year net profit, ending the year at THB 832 million, up from THB 314 million during the same period in 2013, driven by significant performance improvements from both the subsea and drilling divisions.
Mermaid delivered revenue of THB 10,088 million, up 22% year-on-year, primarily due to higher contributions from the subsea business, as more full service contracts were secured, leading to a 31% improvement in average day rates.
Mermaid improved utilisation and day rates in FY 2014 through high-margin long-term contracts in Subsea and Drilling. Average utilization of owned subsea vessels was
66% in FY 2014, similar to FY 2013. Mermaid Maritime also chartered-in more vessels in FY 2014 to serve customers, resulting in higher income.
Equity income, generated from the three-year drilling services contract with Saudi
Aramco (Saudi Arabian Oil Company) for all three jack-up rigs, that commenced in Q4
2013, under its 33.8%-owned associate, Asia Offshore Drilling ("AOD") increased substantially by 687% year-on-year, to THB 1,010 million in FY 2014 from THB
128million in FY 2013.
Gross profit increased 15% year-on-year, although gross margin decreased slightly to
26% compared to 27% in FY 2013 resulting from one subsea vessel being on standby since the third quarter of 2014, while SG&A rose by 28% year-on-year to THB 1,131 million due to increased personnel costs in the Middle East region. Overall, EBITDA increased by 64% over the previous year to THB 2,495 million.
Transport
Thoresen Shipping ended the year with THB 355 million in net profit, driven by its revenue generation capability and cost management, and a healthy fundamental outlook.
Revenues increased 45% in 2014 to THB 6,887million, compared to 2013, as a result of the acquisition of more vessels, and an increase in chartered-in vessels, to accommodate growing commercial relationships, coupled with a recovery in the dry bulk shipping industry, resulting in higher vessel days and stronger freight revenues.
During FY 2014, Thoresen Shipping operated an average of 38.0 vessels (20.0 owned vessels and 18.0 chartered-in vessels), up from an average of 29.2 vessels (16.1 owned vessels and 13.1 chartered-in vessels) in FY 2013.Thoresen Shipping improved
its Time Charter Equivalent ("TCE") by 18% compared to 2013, with a combined TCE of USD 9,887 per day in FY 2014, increasing from USD 8,364 per day in FY 2013, in line with the Supramax market ("BSI"), which is Thoresen Shipping's benchmark.
Thoresen Shipping continued to operate with cost advantages. Owner's expenses, the largest portion of cash operating expenses, were reduced 4% year-on-year, to USD
3,921 per day, well below the industry average of USD 5,121 per day (based on Moore Stephens 2013). Dry docking expenses declined 18% year-on-year to USD 611 per day due to our fleet reconfiguration strategy and diligent on-board maintenance. General and administrative expenses of USD 1,285 per day, decreased 22% year-on- year.
As a result, Thoresen Shipping reported EBITDA of THB 1,150million, representing a
132% increase compared to FY 2013. Thoresen Shipping reported net profits of THB
355million, up 228% compared to net losses of THB 277 million in the same period last year (excluding THB 3,917 million non-cash impairment against its fleet).
Infrastructure
Baconco achieved solid performance improvements, with net profit growing 36% year-on-year to THB 345 million, driven by strong performance from both the fertilizer and warehousing businesses. UMS's net losses decreased 64% compared to 2013 and net bank debt was reduced to THB 537million from THB 1,250 million a year prior.Baconco delivered revenues of THB 3,192 million, representing a 1% decrease year- on-year due to lower fertiliser prices. Warehouse rental revenues increased 71% as a result of 100% capacity utilisation, more rental space and incremental rental fees.
Margins achieved by Baconco improved due to maintaining prices, and a 7% reduction in total costs for the full year, as a result of declining raw material prices. Baconco focused its sales on high margin formula, and a new granular production unit was added in the third quarter of 2014 to boost its production capacity by about 100,000 metric tonnes to total 450,000 metric tonnes. The new production line for export markets started operations in August 2014.
EBITDA increased 25% year-on-year to record at THB457million in FY 2014, with EBITDA margins of 14%, up from 11% in FY 2013, despite 61% year-on-year increase in SG&A. Profitability increased as a result of efficient cost management and effective sales and marketing plans.
Although Baconco's warehouse business currently represents a small proportion of the division's revenue, rental revenues increased 71% to THB 29 million in 2014, compared to THB 17 million in FY 2013, driven by a full year of operation of Baconco's five warehouses as well as incremental rental fees. Capacity utilisation further improved,
at 100% on average in FY 2014 versus 92% on average in FY 2013.
UMS reduced its cost of sales during 2014, reducing net losses to THB 120 million, from THB 335 million in FY 2013. The Company also reduced bank debt to THB 649 million from THB 1,250 million a year prior.
The business improved cash flow, in part by selling down its existing 0-5 mm coal inventories to rebalance its capital structure while limiting the production of classified coals due to operational inefficiencies in its SuanSom facilities as a result of the prohibition of coal transportation in Mae Klong river.
UMS sold approximately 511,100 tonnes of coal in FY 2014, down 35% from 791,100 tonnes of coal in FY 2013. Low-margin 0-5 mm coal accounted for 60% of UMS's total sales volume compared to 27% in FY 2013. Gross margin improved to 24% due to lower cost of sales.
Outlook
Mr. Chalermchai Mahagitsiri added, "We are confident that through the groundwork conducted in 2013 and the investments made in 2014, we enter 2015 with a sound platform to deliver further growth and performance improvements across the whole portfolio of businesses.
"While the dry bulk shipping market remained volatile throughout 2014, industry fundamentals remain healthy in medium to long-run backed by the expected strong demand with minimal global fleet growth.
"The outlook for Mermaid remains optimistic also. Although global oil prices have experienced weaknesses recently, Mermaid Maritime operates in shallow water fields which are less affected due to lower break-even costs experienced
by oil and gas majors as compared to deeper water projects. Overall, the long- term fundamentals in the oil and gas industry remain strong and will drive ongoing growth in the segments that Mermaid Maritime operates in.
"UMS has made improvements and is now better-positioned, after continued efforts to rebalance the business's capital structure and excessive inventories.
"Baconco will continue to contribute strongly to the Group as a result of the additional capacity and high warehouse utilization rates. The expanded export production capability will further bolster the fertilizer business. In addition, the SEC have approved PMTA's filing for an IPO and we expect to propose to TTA shareholders at the beginning of 2015. We are confident that this will facilitate an acceleration of growth in this business.
"In 2015, we will seek to further diversify our investments into high-growth sectors, as evidenced by our recent decision to invest in Sino Grandness Food Industry Group. While the investment is still subject to shareholder approval, we believe it is a strong move, providing exposure to China's F&B sector, and presenting significant synergetic opportunities in leveraging TTA's international expertise and footprint to potentially extend the distribution of Sino Grandness's
products. Upon successful completion of the deal, we will be in a position to book equity income from nine percent of Sino Grandness' net profit, representing a significant contribution to our net profit growth."
Sino Grandness reported net profit of THB 2,000 million in FY2013 with a CAGR net profit (2009-13) of 49%.
-ends-
About TTA
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 both domestically and internationally. TTA's businesses include but are not limited to dry bulk shipping, offshore oil & gas services, fertilizer production and distribution, and integrated port and logistics services with assets
valued at over THB 49 billion and market capitalization over THB 30 billion (as of September 30,
2014). For more information, please visit www.thoresen.com.
For further information, please contact: Thoresen Thai Agencies Plc
********
RavisadaAngkeeros E-mail: ravisada_a@thoresen.com
Tel: +66 2254 8437 Ext. 393 Mobile: +6681398 5098
Or MSL Hong Kong
James Hawksworth E-mail: james.hawksworth@mslgroup.com
Tel: +852 2804 8107 / +852 6381 1120
|
distributed by
|
