TPIPL earnings recovering, but slow debt refinancing

TPIPL earnings recovering, but slow debt refinancing
Published: 30 December 2004

TPI Polene (TPIPL) is expected to report strong recovery in 4Q04 earnings, supported by improved product-to-feed margin for the petrochemical business, FX gains from the strong baht and no extra expenses associated with the unplanned shutdown of the cement plant in 3Q04. As a result, TPIPL is expected to report Bt750m net profits from core operations in 4Q04.

Cement sales volume is forecast to be flat QoQ in 4Q04 at 2.0Mt, while domestic cement prices are expected to fall slightly from 3Q04 average price of Bt1600/t. However, EBIT margins for the cement business should improve significantly from 16.7 per cent in 3Q04 due to the absence of further expenses associated with the cement plant shutdown in 3Q04.