TPIPL: First quarterly loss since 2002

TPIPL: First quarterly loss since 2002
Published: 21 July 2005

TPI Polene (TPIPL) announced a Bt215m loss for 2Q05, compared to a net profit of Bt483m (inclusive of Bt538m extra gain) and Bt768m in 2Q04 and 1Q05, respectively. This was due mainly to Bt766m forex loss and the seasonally low demand for domestic cement. Normalized net profit was Bt549m, down 22 per cent y-o-y but up 15 per cent q-o-q. Profit margins will remain under pressure following the government’s recent move to float diesel price. But cement producers are expected to gradually raise cement prices in 2H05 to ease margin pressures.  Nevertheless, the near term outlook is not encouraging. Progress on the debt restructuring plan has been slow, and TPI’s planned auction of its 31 per cent stake in TPIPL could further complicate TPIPL’s future direction.