Thoresen Thai Agencies Public Company Limited

Bualuang Securities reported that the average Dubai price last week fell 11.84 US dollars per barrel week-on-week to 113.06 US dollars per barrel, driven by expectations for negotiations to end the US-Iran war and by rising supply after Saudi Arabia restored the East-West pipeline. Meanwhile, Singapore refining margins recovered 3.17 US dollars per barrel week-on-week but remained negative at -1.44 US dollars per barrel. The highlight this week was a sharp rebound in petrochemical price spreads across every product tracked: Ethylene rose 34 US dollars per tonne to 278 US dollars per tonne, Propylene gained 19 to 283 US dollars per tonne, HDPE gained 94 to 423 US dollars per tonne, and PP gained 164 to 523 US dollars per tonne, a recovery more pronounced than in the energy group this week. On coal, the NEX price rose 1 percent week-on-week to 143.92 US dollars per tonne. Dry bulk freight rates improved, with the BDI up 2 percent week-on-week to 3,432 points and the Supramax index, a key indicator for PSL and TTA, up 2 percent to 1,779 points, while the World Container Index fell 1 percent week-on-week to 4,468 points. Given that refinery share prices have already priced in a high level of refining margins, the recommendation remains to switch from refinery stocks into petrochemicals, choosing IVL and PTTGC. The Red Sea blockade also continues to support freight rates and opens short-term trading opportunities in shipping stocks. The brokerage maintains an equal weight on the energy group, an overweight on petrochemicals, and an underweight on shipping.

Tris Rating has affirmed the corporate rating and the rating of the current senior unsecured debentures of Thoresen Thai Agencies Public Company Limited, or TTA, at BBB with a Stable outlook. At the same time, it has assigned a BBB rating to the company's new senior unsecured debentures, with a limit of up to 1.7 billion baht. The company will use the proceeds from this bond issuance to repay maturing debt. Tris Rating expects the company's average freight rate to be 16,800 US dollars per day per vessel in 2026, before declining to 14,500 US dollars in 2027 and 12,500 US dollars in 2028. It expects total revenue to be 25.4 billion baht in 2026 and 26 to 27 billion baht per year during 2027 to 2028, with an EBITDA margin of 13% to 14% during 2026 to 2027, before falling to about 11% in 2028. As for the offshore services business through Mermaid Maritime Public Company Limited, or MML, in which the company holds a 68.4% stake, the value of its service contract backlog as of June 2026 stood at 750 million US dollars, comprising 76% IRM work, 14% decommissioning, transportation and installation work, and 10% cable laying work. The credit rating is constrained by the volatility and cyclicality of the core business, as well as the company's high-risk financial policy, particularly investments in digital assets with no clear limits. As of June 30, 2026, the company held approximately 5.8 billion baht in digital assets, compared with cash and cash equivalents of 8.4 billion baht and total liabilities of 11.3 billion baht.

The resurgence of tensions in the Middle East has led to an increase in the average Dubai crude oil price last week by 4.42 US dollars per barrel, or 5%, to 93.03 US dollars per barrel. Meanwhile, the Singapore refining margin fell by 2.84 US dollars per barrel to 17.31 US dollars per barrel, due to increased regional supply and high US oil inventories. Analysts believe that the strong earnings of refinery groups have already been reflected in their stock prices and recommend switching investments to the petrochemical sector, especially IVL and PTTGC, whose share prices have risen more slowly. Most petrochemical spreads have improved, such as the Ethylene-Naphtha Spread, which increased by 93 US dollars to 242 US dollars per ton. Additionally, the blockade of shipping routes in the Red Sea could support short-term freight rates, with the World Container Index rising 4% to 4,526 points, a positive factor for RCL shares. Meanwhile, the BDI index fell 5% to 2,820 points, but Supramax vessels, which are related to PSL and TTA, increased 2% to 1,634 points. The NEX coal price index also rose 3% to 131.81 US dollars per ton, driven by strong demand in Asia-Pacific.

Thoresen Thai Agencies Public Company Limited, or TTA, announced that Thoresen Shipping has taken delivery of the dry bulk carrier M.V. Thor Dan Siam, a Handysize vessel built in 2016 with a deadweight capacity of 34,407 tonnes and an age of about 9.7 years. It is the second vessel added to the fleet in 2026, following the Ultramax M.V. Thor Phra Samut delivered in July 2026. The addition of both vessels reflects a strategy of balancing fleet size and flexibility. Thoresen Shipping was ranked first in the world for time charter equivalent, or TCE, performance in 2025 and is the only company to have been in the top five for eight consecutive years. For the first six months of 2026, the shipping business group achieved an average TCE of 16,614 US dollars per vessel per day, 14 percent above the net Supramax market rate. Following the delivery of the new vessel, Thoresen Shipping owns a fleet of 25 vessels, comprising 21 Supramax, 3 Ultramax and 1 Handysize, with total deadweight capacity of 1,390,666 tonnes, average deadweight of 55,627 tonnes, and an average fleet age of 16.9 years.

Thoresen Thai Agencies Public Company Limited, or TTA, reported a net loss of 194.77 million baht for the second quarter of 2026, reversing from a net profit of 90.11 million baht a year earlier, after booking a loss of 561.9 million baht from marking digital assets to market prices. Excluding extraordinary items, core profit came in at 367.2 million baht, about 70% above analyst expectations. Finansia Syrus had estimated core profit at 367.1 million baht, up 114.2% from a year earlier, and raised its target price to 6.80 baht while maintaining a buy recommendation. For the first six months of 2026, TTA posted a net profit of 5.99 million baht, down 99.36% from 942.40 million baht in the same period last year.

Thoresen Thai Agencies Public Company Limited, or TTA, reported strong operating results. Its shipping business achieved a time charter equivalent rate of 18,240 US dollars per day, 11 percent above the net Supramax market rate, with full 100 percent utilization of its owned fleet. Operating expenses for shipping came to 5,115 US dollars per day, 6 percent below the industry benchmark. In the agrochemical business under PM Thoresen Asia Holdings Public Company Limited, or PMTA, fertilizer export volumes to the Philippines surged 275 percent compared with the same period last year, while revenue from warehouse management services grew 26 percent. The offshore services business through Mermaid Maritime Public Company Limited recorded 95 percent utilization of its subsea engineering vessels and maintained a service backlog of 749.5 million US dollars. TTA also held total cash under management of 8.4 billion baht and an interest-bearing debt to equity ratio of only 0.34 times, while continuing to manage its other investment portfolio, including 212 Pizza Hut outlets, 45 Taco Bell outlets, and a water supply business in Luang Prabang, Laos.

Thoresen Thai Agencies Public Company Limited, or TTA, announced that its subsidiary has established two new companies in the United States to expand its offshore oil and gas business. Mermaid Subsea Services Thailand Limited, or MSST, in which TTA holds direct and indirect stakes totaling 68.39 percent through Mermaid Maritime Public Company Limited, set up Mermaid US Holdings Inc., or MMUH, on August 3, 2026, with registered capital of 100 US dollars. MSST holds all shares and used its internal cash flow as the funding source. The second company, Mermaid Subsea Services US LLC, or MMUS, was registered on the same day to provide services for the offshore oil and natural gas industry, with MMUH holding all shares. The establishment of these subsidiaries does not qualify as a significant transaction under listed company criteria, but results in MMUH and MMUS becoming subsidiaries of TTA.

Sahapat Piboon, or SPC, is driving the Sahapat for Students project into its 10th year, targeting 26 more schools this year, bringing the total coverage to over 250 schools nationwide. The company continues its mission to find young heroes — honest and public-spirited children. Meanwhile, Britania, or BRI, has announced a partnership with True Corporation to integrate smart home solutions and the AI assistant Amy into homes across all five of its brands, with a 24-month free usage promotion for new homebuyers. Chuwit Farm 2019, or CFARM, is pressing ahead with its second-half 2026 strategy by investing in smart farm technology and accelerating construction of a 200,000-hen egg farm. Thoresen Shipping, a subsidiary of Thoresen Thai Agencies, or TTA, has been ranked number one globally for time-charter equivalent earnings management efficiency in the Vessel Index Report 2025, and is the only company to rank in the top five for eight consecutive years. L.P.N. Development, or LPN, joined in celebrating the opening of the 43rd Lucky Suki Marché branch, spanning over 689 square metres, at the Lumpini Township Rangsit-Klong 1 project.

Thoresen Shipping, a subsidiary of TTA, has acquired the dry bulk carrier M.V. Thor Phra Samut, an Ultramax vessel with a deadweight tonnage of 63,025 tonnes and aged 9 years. This is the largest Ultramax vessel in the company's fleet. The investment comes after Thoresen Shipping was ranked number one globally for time charter equivalent earnings performance, and is the only company to have been ranked in the top five for eight consecutive years. The acquisition brings the total fleet to 24 vessels, increasing the average fleet deadweight tonnage to 56,511 tonnes and reducing the average fleet age to 17.17 years.