BECL forecasts 15% net profit uptick

BECL forecasts 15% net profit uptick

Higher contributions from associated firms

The SET-listed Bangkok Expressway (BECL) expects 15% net profit growth this year thanks to a 4% increase in revenue and higher contributions from its associated companies.

A bird’s eye view of the Bangkok Expressway network shows busy traffic. Pattarapong Chatpattarasill

Managing director Payao Marittanaporn said BECL is expected to earn 480 million baht in net profit from Thai Tap Water Supply Plc (TTW), 50 million baht from CK Power Plc (CKP) and 40 million baht from Bangkok Expressway Co.

BECL owns 20.24% of TTW and 23.22% of CKP, according to Stock Exchange of Thailand data.

The private toll road operator's revenue surged to 11.7 billion baht in 2013 from 9.24 billion the previous year, and its net profit more than doubled to 4.83 billion from 2.24 billion.

The sharp increase in 2013 net profit was mainly driven by a one-off gain from divesting partial shares in CKP during its initial public offering (IPO) process last year.

At least 100 million baht worth of insurance claims from the devastating flood in late 2011 are expected to be recorded on this year's financial statement, boosting the company's bottom line.

Operating income this year is projected to improve from last year if political tension subsides, as traffic volume on expressways could increase with revenue rising to 7% from its 4% target, she said. Net profit could also increase due to higher contributions from its associated companies and its planned 100-million-baht cut in costs.

The 4% revenue growth target is based on a 3% contraction in traffic volume and a recent tollway hike by five baht per vehicle.  

The company estimates around 12,000 cars a day will use a new extension route from Asok to Srinakarin roads, set to start commercial operation next Friday, adding traffic volume on the Asok 3 Tollway to 71,000 cars per day, up from 59,000.

BECL will charge a 25 baht fare for the new route.

The new extension route cost 250 million baht to build and the company expects it will break even ahead of the concession expiry in 2027 assuming it contributes 7.5 million baht a month.

BECL's daily traffic volume stood at 1.1 million cars in 2013, but the volume fell 3.89% to 1.08 million cars during the January-to-March quarter. Traffic volume in April improved slightly to a 3% contraction.

The company's revenue for the first three months rose 3.69% over the same period last year.

She said the company has no major investment plans this year.

"Our earnings will be higher than last year and we expect a good year in terms of operating performance. Our investments in TTW and CKP will start to pay off this year," she said.

Shares of BECL closed yesterday on the SET at 35.25, unchanged, in trade worth 40.7 million baht.

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