TTA Posted Positive Revenues & Profits

(Bangkok, 1 December 2009) - Thoresen Thai Agencies PCL ("TTA" or the "Company") announced a decrease in net consolidated profit to Baht 1,813 million in FY2009, due to the global economic recession, which lowered demand for the Company's core assets and services.

TTA Board of Directors approves a dividend payment of Baht 0.54 /share to be paid in February 2010 despite the competitive market pressure and an economic downturn. The company will also request approval to maintain its 50 million private placement shares to fuel growth in its three business groups: Transport, Energy, and Infrastructure.

M.L. Chandchutha Chandratat, President and Chief Executive Officer, revealed that the consolidated net profit for the financial year that ended on September 30, 2009 was Baht 1,813 million, or Baht 2.56 per share, from revenues of Baht 19,959.92 million and operating expenses of Baht 18,494.04 million. The Company was adversely affected by keen competition in dry bulk shipping, lower demand for offshore services, and a sluggish world economy.

"The dividend payment of Bt 0.54 per share shall be paid on February 23, 2010 to shareholders whose names appear on TTA's share register on February 8. The share register closing date is scheduled on February 9. The Company will also request shareholders approval to maintain its registered but unissued 50 million shares for a potential private placement. Even though we have had the 50 million unissued shares for 10 years, we have never issued them. Under revised SEC regulations, the Company must seek shareholders approval to maintain any unissued amounts on a yearly basis. We have no plans to place the shares at this time, but would like to maintain them for future financial flexibility. Our registered capital shall remain roughly the same as 2009," M.L. Chandchutha added.

The Company has a registered capital of Baht 933,052,865, comprising 708,004,413 authorised and issued shares at par value of Baht 1, and 175,000,000 authorised but unissued shares as a reserve for the exercise of convertible debentures. Assuming the shareholders approve TTA's request, the new registered capital will be Baht 933,004,413.

TTA announced its Fourth Quarter results (July-September 2009) and FY 2009 as follows:

"Our three major business sectors (Transport, Energy, and Infrastructure) feature a diversified revenue generating base. The results demonstrate that we are on the right track for our diversification strategy.  Mermaid Maritime Public Company Limited, which is the Offshore Services & Drilling Group and falls under the Energy Group, contributed 22.1% to TTA's net profit, up from 6.5% a year ago. By expanding into other sectors, it makes us better able to stabilize revenues and profits of TTA, thereby reducing the negative impact of the shipping cyclical downturn. We also expect positive contributions from our recent acquisitions in 2010," revealed M.L. Chandchutha.

At the end of FY2009, cash and cash equivalents were Baht 10,718.89 million, a decrease of Baht 808.91 million from FY2008. The Company generated cash of Baht 5,000.68 million from operating activities and used Baht 4,757.44 million and Baht 1,111.25 million for investing purposes and financing activities, respectively.  Cash receipts of Baht 140.36 million were due to investments in new subsidiaries. The remaining Baht 81.26 million resulted from the effect of exchange rate changes.

During this financial year, investing activities originated mainly in Mermaid and included instalments of Baht 979 million on tender rig construction, Baht 1,050 million for remote operated vehicles ("ROV") and ROV support vessel construction, and Baht 396 million for saturation diving system construction. The remaining capital expenditures are related to the accumulated dry-docking payments for both TTA and Mermaid.

Mermaid plans to offer 4,000,000 warrants (up to five years from the issue date of warrants) to directors and employees. A total of 4,000,000 shares represented 0.51 per cent of the paid-up capital of Mermaid (such paid-up capital representing 784,747,743 shares). This is to foster the motivation of employees.
During FY2009, the Company repurchased and cancelled a portion of the outstanding convertible bonds amounting to USD 56.4 million or Baht 1,927.5 million. This represented 33.2% of the outstanding principal amount of the bonds. Gains on convertible bonds cancellation of Baht 676.3 million are recognised in the consolidated and company financial statements for FY2009.

During FY2009, the Company scrapped and sold eight dry bulk vessels to third parties.  The total cash received for the eight vessels sold to third parties amounted to Baht 623.29 million. The total accounting gains from the sales of these eight vessels amounted to Baht 33.51 million.  TTA ordered five new vessels to be delivered from January 2010 to February 2012 at a total cost of USD 182 million. Financing of this renewal plan will come from a combination of cash flows from operations and a USD 360 million syndicated loan facility.

TTA acquired a 100% interest in Baconco Co., Ltd., a Vietnam company that manufactures fertilizers, at the total purchase price of Baht 374.1 million. This acquisition contributed revenues of Baht 365.9 million and net profit of Baht 17.6 million to TTA for the period from the acquisition date to 30 September 2009. For the Energy Group, TTA acquired 21.2% in Merton Group (Cyprus) Co., Ltd., a coal mining joint venture in the Philippines  at the cost of USD 5 million. TTA is also in the process of completing its tender offer for the remaining shares and warrants of Unique Mining Services Public Company Limited that it does not own.

 "Amidst the present challenging economic environment, TTA remained profitable and generated positive operating cash flows in FY2009 under the three main business groups of transport, energy, and infrastructure. We have seen stabilisation and some improvements in our core businesses, but believe that the economic environment remains difficult as we head into 2010.  We need to adopt a cautious approach coupled with new business development, as TTA recently secured a USD 200 million syndicated loan facility from four leading commercial banks for future acquisitions," concluded M.L. Chandchutha.

About TTA
Thoresen Thai Agencies Public Company Limited is amongst the top 50 companies listed on the Stock Exchange of Thailand with high trading liquidity. Its investment strategy is to grow through a diversified business portfolio of transport, energy, and infrastructure assets, both domestically and internationally.  TTA is recognised as a leader in the dry bulk shipping industry, providing liner and tramp services.  The company has also expanded its investment into other business areas that can support current businesses such as an investment in offshore services related to oil and natural gas drilling and subsea engineering in the Southeast Asia region through Mermaid Maritime Public Company Limited.