SET-listed Thoresen Thai Agencies Plc (TTA) posted a minimal rise in profit for the third quarter compared to the previous quarter as improving income from dry-bulk shipping lent support, helping it improve on weak performance last year.
Chalermchai Mahagitsiri, the president and chief executive, said the company posted a net profit of 6.9 million baht in the third quarter this year, reversing a loss of 30.6 million in the previous quarter.
However, the profit in the third quarter of 2016 was still well below the 195.7 million baht profit in the same period last year.
He said earnings before interest, taxes, depreciation and amortisation was 660.8 million baht for the period, up 21% from the second quarter, largely because of an improvement in investment performance during the quarter.
"This represents the company's best quarter year-to-date because of the improvement in the dry-bulk shipping industry, more vessel activities, contributions from the fertiliser business and a good performance from the holding company," Mr Chalermchai said.
In first nine months this year, TTA earned net cash flow from operations of 1.32 billion baht.
It still had a net loss of 254.3 million baht in the first nine months of this year, a dip from a loss of 51.3 million baht in the same period last year.
"We are pleased to see better than expected financial results for the third quarter," he said. "We improved gross margins in Thoresen Shipping, Mermaid Maritime and PMTA's fertiliser businesses."
He said TTA's shipping margins improved because of efficient fleet management and sustained cost control efforts, while the dry-bulk market also saw an uptick in the quarter.
Mermaid Maritime saw steady contributions from its long-term contracts. However, there is considerable uncertainty concerning the oil and gas industry outlook.
As a result, Mermaid Maritime will continue to focus on achieving high vessel utilisation rates while trying to renew long-term contracts with key customers in growth areas such as Southeast Asia and the Middle East.
For other core components, PMTA's fertiliser business delivered higher revenue from exports to Africa and the Philippines, while continuing to look for growth opportunities in both its fertiliser and factory leasing segments.
TTA shares closed yesterday on the Stock Exchange of Thailand at 9.65 baht, a increase of 40 satang, in heavy trade worth 549 million baht.