The Third Quarter Financial Results

Back Aug 15, 2004

Ref : COR: MS/EL05014e/st

15 August 2005

 

Subject:  The Third Quarter Financial Results

To:         President of the Stock Exchange of Thailand

 

Thoresen Thai Agencies Public Company Limited ("TTA") recorded a consolidated net profit for the

three-month period that ended on 30 June 2005 (the "2005 Third Quarter") of Baht 1,321.28

million, including an exchange loss of Baht 433.23 million. During the three month period that ended

on 30 June 2004 (the "2004 Third Quarter"), TTA recorded a consolidated net profit of Baht 1,442.10

 million, including an exchange loss of Baht 216.79 million.

 

The consolidated net profit fell 8.38% on a quarter on quarter basis due to higher exchange losses. If the

exchange losses and minority interests were excluded, the consolidated net profit would rise 5.31% from

Baht 1,672.49 million to Baht 1,761.28 million. The net profit increase was achieved by a combination of

different factors, including a strong freight market and a larger and better-equipped fleet due to investments

made over the past 24 months.

 

The most important factor behind the improved operating results was the strong freight market. The average

TC rate, including contributions from chartered in tonnage, rose 7.23% from USD 15,232 per vessel day in

the 2004 Third Quarter to USD 16,334 per vessel day in the 2005 Third Quarter.

 

TTA had a total of 4,349 vessel days available in the 2005 Third Quarter, as compared to 3,908 vessel

days available in the 2004 Third Quarter. The average vessel size also increased 6% from 24,776 DWT in

the 2004 Third Quarter to 26,347 DWT in the 2005 Third Quarter.

 

Given the strong profit levels, TTA has embarked on an extensive fleet upgrade programme to generate

higher vessel efficiency and to carry more types of dry cargoes. This fleet upgrade programme has limited

the increase in our net profit.

 

Freight demand remains healthy on our core liner service routes. Our strategy of chartering vessels on one to

three year time charters remains in place, and thirty percent (30%) of existing deadweight capacity has been

fixed for the next financial year. We expect to achieve good profit levels in the coming quarters.

 

Yours faithfully,

 

 

 

                                                                                                                                               

M.R. Chandram S. Chandratat                                 M.L. Chandchutha Chandratat

Chairman                                                                     Managing Director