TPI Polene (TPIPL)’s 2Q06 net profit fell 70% q-o-q to Bt344m, but improved from Bt256m loss in 2Q05. This included Bt99m unrealized FX gain on foreign debts (2Q05: Bt765m loss, 1Q06: Bt982m gain). Normalized net profit was Bt251m, down 47% y-o-y and 19% q-o-q due mainly to higher energy costs. 
 
3Q06 earnings prospects remain uninspiring as domestic cement demand should remain soft, while margins will remain under pressure amid expectation of higher oil prices in 2H06. However, the recent positive development in Thailand’s political scene should pave the way for improving economic prospects, and healthy demand growth for cement in 2007.  
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