TTA Reports Strong Net Profit of THB1.1 Billion in 1Q24 from High TCE Rate and Offshore Revenue

  • Thoresen Shipping managed to outperform the market and was ranked in the top three of the listed dry bulk companies on their TCE performance for 2023 and the only company ranked in top 5 for 6 consecutive years (2018 – 2023) according to “Vesselindex Performance Report” Maritime Advisors, Liengaard & Roschmann.
  • Shipping segment delivered net profits to TTA of Baht 656.4 million with TCE rate of USD 15,932 per day outperforming the net Supramax TC rate by 29%.
  • Offshore Service segment delivered solid net profits to TTA of Baht 6.9 million with the recorded highest order book at USD 734.5 million in 1Q/2024.
  • Agrochemical segment delivered solid net profits to TTA of Baht 3.1 million despite the low season.


Thoresen Thai Agencies Public Company Limited (TTA) reported revenues of Baht 6,523.1 million in 1Q/2024 which increased 37%YoY mainly from Offshore Service segment and Agrochemical segment. Shipping, Offshore Service, Agrochemical, Food & Beverage, and Other investment segments contributed 26%, 48%, 11%, 9%, and 6% to the consolidated revenues, respectively. In summary, TTA reported strong net profits of Baht 1,116.0 million in 1Q/2024, significantly increased by 419%YoY with capital structure remained strong from low interest-bearing debt to total equity ratio of 0.42 times.

Mr. Chalermchai Mahagitsiri, TTA President and Chief Executive Officer, said: TTA’s first quarter results indicate the trend of steadily improving cashflow and profitability. Despite disruptions to trading patterns caused by hostilities in the Red Sea, growing geopolitical tensions in the Persian Gulf, and the continuing war in Ukraine, we are pleased with the business performance of Shipping and Offshore Service Segments. Thoresen Shipping continued to outperform the market in Q1/2024. In addition, Maritime Advisors, Liengaard & Roschmann have recently published their “Vesselindex Performance Report”, ranking the listed dry bulk companies based on their TCE performance and Thoresen Shipping achieved at the top three of the ranking, outperforming the market at USD 3,790, or 38.6%. Meanwhile, Mermaid continued to perform well in subsea-IRM and decommissioning and T&I projects. Therefore, we remain confident that the future offers opportunities for Mermaid to sustain and extend its presence in the subsea business sectors in Thailand, the Middle East, and the UK.”


Key Strategic Business Segment Performance

Shipping Segment: Thoresen Shipping’s freight revenues were reported at Baht 1,690.4 million in 1Q/2024 which increased 6%QoQ due to rising Shipping TCE rate. Shipping segment TCE rate rose 16%YoY to USD 15,932 per day. Own fleet utilization rate remained high at 100% with the highest TCE rate of USD 36,343 per day. Meanwhile, vessel operating expenses (OPEX) were recorded at USD 4,113 per day, which decreased 4%YoY. The gross profits increased 35%YoY to Baht 854.5 million. EBITDA also increased 37%YoY to Baht 815.5 million.

In summary, Thoresen Shipping delivered net profits to TTA of Baht 656.4 million, significantly improved 56%YoY in 1Q/2024. Thoresen Shipping owned 24 vessels (22 Supramaxes and 2 Ultramaxes) with an average size of 55,913 DWT and an average age of 16.0 years.


Offshore Service Segment:

Mermaid Maritime Public Company Limited (Mermaid) recorded revenues of Baht 3,139.0 million in 1Q/2024, which increased by 112%YoY largely from subsea-IRM and decommissioning and T&I projects. Revenues from subsea-IRM, decommissioning, and T&I, and cable laying accounted for 52%, 34%, and 14% of Offshore Service revenues respectively.

Revenues from subsea-IRM significantly grew by 88%YoY mainly from more non-vessel projects and increased 11%QoQ from a higher vessel utilization rate. Meanwhile, the performing subsea-IRM vessel utilization rate increased to 83% in 1Q/2024. In addition, revenues from decommissioning and T&I business, and cable laying business significantly increased 119%YoY mainly due to the decommissioning service expansion in Thailand. As a result, gross profits strongly increased 180%YoY to Baht 479.2 million. Therefore, EBITDA significantly rose by 463%YoY to Baht 281.3 million.

In summary, Mermaid reported net profits to TTA of Baht 6.9 million in 1Q/2024, which significantly increased 107%YoY, with the remained strong order book at USD 734.5 million in 1Q/2024.


Agrochemical Segment:

PM Thoresen Asia Holdings Public Company Limited (PMTA) reported revenue of Baht 711.7 million in 1Q/2024, which increased 73%YoY mainly from increasing fertilizer sales. Fertilizer sales revenues increased by 87%YoY due to an increase in fertilizer sales volume both domestic and export volume.  Total fertilizer sales volume was recorded at 32.3 Ktons, increasing 130%YoY from the recovery of domestic demand resulting from reduced fertilizer selling price. Domestic fertilizer, in Vietnam, sales volume accounted for 79% of total fertilizer sales volume amounting to 25.6 Ktons. Meanwhile, export fertilizer sales volume increased by 98%YoY to 6.8 Ktons since export volume to Southeast Asia expanded. On the other hand, sales of pesticides decreased 6%YoY to Baht 32.7 million. Service income from factory management also decreased 6%YoY to Baht 27.1 million due to the lower warehousing activities. Therefore, gross profits increased by 229%YoY to Baht 99.9 million. Thus, EBITDA was Baht 32.1 million, improving 511%YoY.

In summary, PMTA delivered net profits to TTA of Baht 3.1 million, increasing 112% in 1Q/2024.


Food & Beverage

Pizza Hut is operated as a 70%-owned subsidiary of TTA. As of March 31, 2024, there were 186 outlets nationwide. All outlets were opened in the high traffic location in major provinces.

Taco Bell, the leading American restaurant chain serving a variety of Mexican inspired food, is operated as a 70%-owned subsidiary of TTA. As of March 31, 2024, there were 26 outlets nationwide.


Other investment focuses on water and logistics sectors.

Asia Infrastructure Management (Thailand) Co., Ltd. (“AIM”), an 91.87% owned subsidiary of TTA, is the water contractor/service company. AIM also owns a concession to sell tap water in Luang Prabang, Laos, through a 100%-owned subsidiary.