TTA Reported Historical High Normalized Net Profits of Baht 1,672.4 Million in More Than a Decade in the Second Quarter of 2022

• Shipping segment delivered a solid net profit of Baht 1,763.1 million in 2Q/2022.
• Offshore Service segment was back on track with a turnaround profit on the back of the strong order book at US$ 358 million in 2Q/2022.
• Agrochemical segment continued to be profitable from the recovery in export fertilizer sales volume.
• Healthy balance sheet with cash under management Baht 11,764.2 million.
• Strong capital structure with low IBD/E at 0.37 times.

Bangkok, Thailand, 16 August 2022 - Thoresen Thai Agencies Public Company Limited or TTA reported solid revenues of Baht 8,092.1 million in 2Q/2022, increasing 58%YoY and 34%QoQ driven by the significant growth in core businesses, especially Shipping and Offshore Service segments. Shipping, Offshore Service, Agrochemical, Food & Beverage, and Investment segments contributed 54%, 23%, 13%, 6%, and 4% to the consolidated revenues, respectively. Gross profits amounted to Baht 2,614.1 million, increasing 85%YoY and 52%QoQ. EBITDA grew 97%YoY and 53%QoQ to Baht 1,993.9 million. Therefore, normalized net profits to TTA increased 156%YoY and 71%QoQ to Baht 1,672.4 million.

As of June 30, 2022, TTA had total assets of Baht 41,937.6 million, increased by Baht 2,990.5 million or 8% from the end of 2021, mainly due to an increase in cash and cash equivalents from operating profit of the first half of 2022. Cash under management, which combines cash, cash equivalents, and other current financial assets, remained high at Baht 11,764.2 million. The capital structure remained strong and was represented by the low interest-bearing debt to total equity (IBD/E) of 0.37 times at period-end.

Mr. Chalermchai Mahagitsiri, TTA President and Chief Executive Officer said: "Due to an increasing Shipping TCE rate and service expansion of Offshore Service segment, TTA reported historical high normalized net profits in more than a decade in 2Q/2022. Thoresen Shipping's TCE rate remained strong with a record decade-high owned fleet TCE. According to Clarksons Research, despite macroeconomic challenges and demand-side concerns related to the Russia-Ukraine conflict, the dry bulk market remains solid with earnings far above historical averages.

"Mermaid returns to profitability in 2Q/2022 as revenues from cable laying business and decommissioning and T&I business rose dramatically. The order book reached its new record high at quarter-end, mainly due to the 3-year contract extension from the same reputable client in the Middle East for offshore services. Meanwhile, PMTA continued to be profitable from the recovery in export fertilizer sales volume despite the difficult situation."

Key Strategic Business Segment Performance

Shipping Segment:

Thoresen Shipping recorded its new decade high freight revenues of Baht 4,376.5 million in 2Q/2022, increased 63%YoY and 38%QoQ, mainly due to the rising freight rate. In 2Q/2022, TCE rate rose 68%YoY and 23%QoQ to US$ 30,831 per day on average, outperforming the net Supramax's market rate of US$ 27,456 by 12%. Owned fleet TCE rate, reached a record high in more than a decade and grew 79%YoY and 17%QoQ with the highest TCE rate at US$ 49,972 per day and full utilization rate at 100%. Meanwhile, vessel operating expenses (OPEX) remained low at US$ 4,048 per day. As a result, gross profits grew 119%YoY and 35%QoQ to Baht 1,917.2 million. EBITDA increased 133%YoY and 32%QoQ to Baht 1,916.1 million. In summary, Thoresen Shipping delivered the net profits to TTA of Baht 1,763.1 million, which grew 163%YoY and 36%QoQ in 2Q/2022. At quarter-end, Thoresen Shipping owned 24 vessels (22 Supramaxes and 2 Ultramaxes) with an average size of 55,913 DWT and an average age of 14.2 years.

Offshore Service Segment:

Mermaid Maritime Public Company Limited or Mermaid recorded its revenues in 2Q/2022 at Baht 1,888.8 million, which significantly increased 148%YoY mainly from the expansion of services to the cable laying, decommissioning and Transportation & Installation (T&I) businesses, and increased 41%QoQ, mainly from subsea-IRM projects. Gross profits turned positive and amounted to Baht 289.1 million, which improved 136%YoY and 472%QoQ, mainly due to better margin of the cable laying projects and higher utilization rate of subsea-IRM vessels. In addition, there were share profits of Baht 27.8 million from a joint venture under Offshore Service segment. Consequently, EBITDA significantly improved YoY and QoQ to Baht 187.0 million.

In summary, Mermaid reported net profit for the period for the first time since 4Q/2017 of Baht 84.5 million and net profit to TTA of Baht 45.5 million in 2Q/2022. The order book reached a record high at US$ 358 million in 2Q/2022.

Agrochemical Segment:

PM Thoresen Asia Holdings Public Company Limited or PMTA reported total revenues in 2Q/2022 at Baht 1,012.9 million, which increased 13%YoY and 40%QoQ, mainly due to the higher selling price of fertilizer, higher revenues from pesticides, and area management services. Total fertilizer sales volume recorded at 36.3 Ktons. Domestic fertilizer sales volume accounted for 54% of total fertilizer sales volume, totaling 19.7 Ktons. Meanwhile, fertilizer exports to the Philippines expanded since China imposed a ban on fertilizer export to secure its local supply. Therefore, export fertilizer sales volume increased 153%YoY and 401%QoQ to 16.6 Ktons. Besides fertilizer, service income from factory area management also increased 87%YoY and 4%QoQ to Baht 24.2 million because of higher customers' demand for the warehouse and services.

In summary, Agrochemical segment continued to be profitable with net profits of Baht 16.4 million and net profits to TTA of Baht 11.2 million in 2Q/2022.

Food & Beverage

Pizza Hut is operated as a 70%-owned subsidiary of TTA. As of June 30, 2022, there were 184 outlets nationwide. All outlets were opened in the high traffic location in major provinces.

Taco Bell, the leading American restaurant chain serving a variety of Mexican inspired food, is operated as a 70%-owned subsidiary of TTA. As of June 30, 2022, there were 12 outlets nationwide. One outlet was opened this quarter at Suvarnabhumi Airport.

Investment focuses on water and logistics sectors.

Asia Infrastructure Management (Thailand) Co., Ltd. ("AIM"), an 83.75%-owned subsidiary of TTA, is the water contractor/service company. AIM also owns a concession to sell tap water in Luang Prabang, Laos, through a 66.7%-owned subsidiary.

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