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