TTW eyes 10% profit rise

TTW eyes 10% profit rise

Thai Tap Water Supply Plc (TTW), Thailand's biggest private tap-water supplier, is aiming for 10% growth in net profit this year, outpacing its 1% revenue growth target.

Revenue growth is expected to rise marginally from last year, which benefited from a one-off 347-million-baht tax rebate, accounting and finance director Somkiat Pattamamongkolchai said yesterday. 

However, he estimated that its revenue for the first three months of 2014 will be close to the amount in the same period last year.

TTW's revenue in 2013 rose 10% to 5.85 billion baht and net profit jumped 13% to 2.57 billion baht. Its net profit during the first quarter of 2013 surged to 873.80 million baht from 591.27 million.

Sales volume this year is expected to rise by 4-5% to 283 million cubic metres.

The company has also raised its water price in a range of 1.7-2%, but the rate hikes are different in each area.

It now supplies tap water to waterworks authorities in Nakhon Pathom, Pathum Thani and Samut Sakhon provinces. However, it has expanded into energy to diversify its revenue structure and boost its income.

TTW's capacity is 440,000 cubic metres per day (cmpd), while its Pathum Thani subsidiary has been fully utilised since last year at 388,000 cmpd.

Mr Somkiat said TTW plans to spend 1.5 billion baht this year to expand capacity at its Pathum Thani plant by 60,000 cmpd to 448,000 and construct a new plant with capacity of 100,000 cmpd in Samut Sakhon.

The expansion of its Pathum Thani plant will start in the second quarter and will take one year to complete, he said.

Construction of the Samut Sakhon plant will also begin next quarter but will be completed in 2016.

TTW expects to conclude its plan for investment in Myanmar next quarter. The 250-million-baht pilot project, which is designed for a capacity of 40,000 cmpd, will be TTW's first overseas investment.

TTW's shares rose 10 satang on the SET yesterday to close at 9.55 baht in trade worth 84.18 million baht.

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