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6% volume decline reflects costly fuel
NAREERAT WIRIYAPONG
The number of expressway users fell 6% in the first nine months this year from a year earlier, reflecting lower spending power, high oil prices and the world financial slowdown, according to Bangkok Expressway Plc (BECL).
BECL senior general manager Panan Tosuwanthaworn said average traffic volume in the nine-month period dropped to 873,900 trips per day from 927,570 a year earlier.
The company's projection for the full year was 900,000 trips a day.
''Now all we can do is to pray for [expressway users] for the whole year to reach our target,'' she said.
The sharp fall in volume started in April when oil prices began climbing to all-time records. BECL was also affected by the opening of the Southern Ring Road, which charged no tolls.
About 40,000 daily expressway commuters have switched to the free loop that runs from Dao Khanong to Samut Prakan, reducing BECL's revenue by around 800,000 baht a day.
In addition, an increase of between 12% and 15% in toll fees in September resulted in a 7% drop in the number of commuters.
Next year would be tougher, said Ms Panan, with the best-case scenario being flat growth in traffic volume.
She voiced concern over the global financial crisis resulting in massive layoffs of office workers, drastically reducing the number of expressway commuters.
Suttida Sukhanindr, senior manager for investor relations, added that the company had sold three-year debentures worth four billion baht with an annual interest rate of 5.2% on the likelihood that interest rates would rise for the rest of the year and next year.
All the proceeds from selling bonds will go to repaying debts, which now stand at 16 billion baht in total. BECL's current debt to equity ratio is 1.6 to 1.
''Like other listed companies, we are all worried about the possibility of tight credit. It [a liquidity problem] is very likely to be happening next year so we should be prepared for hardships,'' she said.
BECL last year issued 7.5 billion baht worth of debentures with maturities of three, five and seven years, out of a total of 15 billion baht approved by its board of directors.
The company will issue the remaining 3.5 billion worth of bonds approved by the board next year unless market conditions are unfavourable.
BECL last year posted total revenue of 7.289 billion baht _ up from seven billion in 2006 _ of which 7.23 billion came from tolls with a 3% increase in traffic. But net profit dropped to 1.4 billion baht from 1.54 billion baht a year earlier, as the company paid a penalty fee of about 200 million baht for repaying some bank loans ahead of schedule.
Its first-half net profit this year was 634.16 million baht, a decrease of 13.6% from 735 million in the same period last year. It is due to report its third-quarter results later this month.
BECL shares closed yesterday on the Stock Exchange of Thailand at 12.90 baht, up 80 satang, in trade worth 7.25 million baht.
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