TPI Polene (TPIPL) is expected to post impressive 4Q06 earnings next week of Bt531mn (EPS of Bt0.26), up 87% yoy but down 28% QoQ. Interest expenses are projected to fall 17% qoq and 43% yoy to Bt210m following the company’s recent capital increase and repayment of debt. Also, the baht’s strong appreciation in 4Q06 is expected to result in a forex gain of about Bt240mn. Stripping out this extra gain, TPIPL should post a normalised profit of Bt291m, down 18% QoQ, but a sharp turnaround from its Bt114m normalised loss in 4Q05. 
 
This year TPIPL’s normalised profit is expected to surge 90% to Bt1,987mn, aided by a drop in interest expenses from Bt1.17bn in 2006 to Bt754m due to its lower debt burden. TPIPL’s bottom line should also be bolstered by higher cement prices, lower energy costs and better margins from its LDPE and ready-mixed concrete businesses. Moreover, TPIPL is expected to book a one-off gain of Bt2,362m this year if the Supreme Court upholds a lower court’s ruling against a small group of creditors. 
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