TPIPL reported a 2Q09 net profit of Bt840mn, turning from a net loss of Bt6.8bn in 2Q08 and up 109% QoQ. The results were 38.0% above market expectations due to greater-than-expected extra gains. Stripping out the extra gains from the debt repurchase at a discount of Bt156mn and FX gains of Bt225m, its normalised profit was Bt458m, down 24.6% YoY, but up 5.0% QoQ. The YoY dip was caused by a contraction in cement sales volume.
 
Meanwhile, the slight rise QoQ was due to the reversal of financial costs offsetting the seasonal drop in cement sales volume.
 
Revenue was Bt5.9bn, down 10.4% YoY but up 2.6% QoQ. The drop YoY was from the decline in cement sales volume and chemical selling price. Meanwhile, the slight increase QoQ was backed by the increase in chemical selling price offsetting the seasonal drop in cement sales volume.
 
Gross margin was squeezed to 21.6%, down 4.0ppts YoY and 0.4ppts QoQ. The margin contraction was due to the lower cement sales volume, despite wider chemical spreads (LDPE-Ethylene spread increased 5.9% YoY and 32.0% QoQ).
 
 TPIPL reversed financial costs to a net interest income of Bt14mn, turning from the interest expenses of Bt268mn in 2Q08 and Bt98mn in 1Q09. This is expected to be due to a reversal of accrued interest expenses after the completion of the debt repurchase.
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