SET-listed Thoresen Thai Agencies Plc (TTA) says the company's outlook is positive after returning to profitability in all its core businesses.
For its fiscal 2014 that ended in September, TTA reported a net profit of 1.02 billion baht, swinging from a loss of 5.1 billion in fiscal 2013.
"Most of the loss in 2013 was due to accounting provisions for restructuring, changes in the shareholding structure and effects of the industry downturn," said chief financial officer Krailuck Asawachatroj.
"Our fiscal 2014 represents the best performance in five years, with main revenue from Mermaid Maritime as the main source of profit," he said.
Mermaid Maritime posted a net profit of 832 million baht, up from 314 million a year earlier, as the company managed to secure more high-margin long-term contracts.
In shipping, Thoresen Shipping saw a net profit of 355 million baht, improving on a loss of 100 million.
"In 26 years, the Baltic Dry Index (BDI), which assesses the price of shipping major commodities based on shipping demand against the supply of dry-bulk carriers, has dropped below 900 points three times, and last year was one of the three," Mr Krailuck said. "So far, the BDI has been above 1,000 points."
Freight rates have risen from an average of US$8,200 a day in 2013 to $9,900 in 2014. TTA also cut operating costs to enhance profitability.
In October, TTA bought 9% of Singapore-listed Sino Grandness Food Industry Group, a Chinese maker and distributor of canned food and drinks, to add a high-growth business to its portfolio.
"The deal awaits the approval of the board by the first quarter of 2015," Mr Krailuck said. "Sino Grandness earned about 2 billion baht in net profit last year, and we will be able to book the profit right away."
Overall, TTA sees bright prospects across its range of businesses.
"The shipping industry is close to a bottom, so there is more upside potential than before," Mr Krailuck said. "We also see growth in shipping demand outstripping growth in supply over the next couple of years."
The lower cost of energy is unlikely to affect Mermaid Maritime, due to long-term contracts and delays in ongoing projects.
Over the last 15 years, the exploration and production budget for oil and gas has continuously increased except in 2008, the year of the BP oil spill in the Gulf of Mexico.
TTA shares closed Thursday on the Stock Exchange of Thailand at 20.30 baht, down 50 satang, in trade worth 375 million baht.