Precious Shipping (Thailand) plans up net profit in 2007
Precious Shipping, Thailand's largest shipping firm, said yesterday that it expected its 2007 net profit to top last year's 3.72 billion baht (S$170 million) due to higher freight rates and the sale of ships.
Precious, a dry bulk carrier, also planned to buy 10 used ships for US$25-30 million apiece to replace 10 sold, managing director Khalid Hashim said.
'We will be better than 2006 due to better freight rates and the fact that we'll be booking the profits from selling those 10 ships from last year in this quarter,' Mr Hashim told reporters.
He did not give a specific earnings forecast, but nine analysts polled by Reuters Estimates expected on average that PSL's net profit would rise 25 per cent to 4.65 billion baht in 2007 from 3.72 billion baht in 2006.
Average freight rates would be US$12,000-US$13,000 per ship per day this year, compared with an average of US$11,387 in 2006 due to higher freight rates and rising ship demands, Mr Hashim said.
The shipper would buy 10 new ships this year, each five to 10 years old, to replace the ones sold, he said.
The company has already made plans to borrow US$550 million of funds - US$300 million from Krung Thai Bank and US$250 million from foreign financial institutions - to buy ships over the next five years, Mr Hashim said without giving further details. The firm became debt free in October, when it paid off a US$40 million loan, he added.
Precious now runs 44 handy-size ships with a combined capacity of 1.13 million deadweight tonnes (DWT), an average of 25,688 DWT per ship.
PSL, which ships mainly Thai agricultural products and building materials, would not sell any ships this year but would consider selling an average five ships per year starting in 2008, he said.
Precious, a dry bulk carrier, also planned to buy 10 used ships for US$25-30 million apiece to replace 10 sold, managing director Khalid Hashim said.
'We will be better than 2006 due to better freight rates and the fact that we'll be booking the profits from selling those 10 ships from last year in this quarter,' Mr Hashim told reporters.
He did not give a specific earnings forecast, but nine analysts polled by Reuters Estimates expected on average that PSL's net profit would rise 25 per cent to 4.65 billion baht in 2007 from 3.72 billion baht in 2006.
Average freight rates would be US$12,000-US$13,000 per ship per day this year, compared with an average of US$11,387 in 2006 due to higher freight rates and rising ship demands, Mr Hashim said.
The shipper would buy 10 new ships this year, each five to 10 years old, to replace the ones sold, he said.
The company has already made plans to borrow US$550 million of funds - US$300 million from Krung Thai Bank and US$250 million from foreign financial institutions - to buy ships over the next five years, Mr Hashim said without giving further details. The firm became debt free in October, when it paid off a US$40 million loan, he added.
Precious now runs 44 handy-size ships with a combined capacity of 1.13 million deadweight tonnes (DWT), an average of 25,688 DWT per ship.
PSL, which ships mainly Thai agricultural products and building materials, would not sell any ships this year but would consider selling an average five ships per year starting in 2008, he said.