TPI Polene (TPIPL) announced an impressive 1Q10 normalised profit of THB500m (EPS THB0.25), up 45% QoQ and 32% YoY. If including the extra items, a gain from debt restructuring of THB77m and a forex gain of THB100m, TPIPL would have posted a net profit of THB677m (EPS Bt0.34), down 76% QoQ, but up 22% YoY.
This impressive normalised profit came as TPIPL sales were up to THB6139m (+18% QoQ, +8% YoY) from domestic cement demand, which rose by 7% YoY and LDPE petrochemicals that were higher this quarter.
The gross margin was down to 19.9% from 22.3% in the previous quarter and 22.1% in the previous year as there were lower cement prices in that period. The selling and administrative expenses were THB944mn or just 15% of sales, down from the previous quarter and the previous year at 18%. In addition, earnings were also supported by interest expenses falling to just THB39m (-47% QoQ, -60% YoY) from an accounting change from debt structuring gains.
On the balance sheet, as of Mar 31, 2010, TPIPL debt was down to THB5310m (excluding the court fines of THB6.9bn) from THB5652mn, as of Dec 2009, and THB12,758mn, as of Dec 2008. This shows the improvement in the financial status. However, the enforcement of the court ruling against the firm means a payment of a Bt6.9 fine is currently pending and scheduled to be made on Aug 23, 2010. This is viewed as another high-risk situation for TPIPL.
Source: Thai News Services