Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Thoresen Thai hit by loss of $416m in 2015 on impairment charges

Thoresen Thai hit by loss of $416m in 2015 on impairment charges
Thoresen Thai Agencies (TTA) saw its results sank into the red in 2015 after the group took a huge impairment loss on assets.

Net loss for the year ended 31 December 2015 was recorded at THB14.8bn ($415.71m), a reversal from the profit of THB1.39bn in 2014.

Revenue dropped by 4% year-on-year to THB21.43bn due mainly to lower contributions from its transport group led by dry bulk shipping business as freight rates have declined substantially.

TTA’s annual result was hit by significant impairment on assets and other items amounting to THB14.56bn, compared to the impairment of THB49.5m in 2014.

“2015 was a very challenging and difficult year as the company had faced a number of challenges and prolonged downturn in oil and gas, dry bulk shipping and coal industries, which are likely to continue throughout 2016 and 2017,” said Chalermchai Mahagitsiri, president and ceo of TTA.

“In order to reflect the challenging market situations and to be in line with conservative accounting approach and auditing rules, it was necessary for the company to take these one-time non-cash charges after a series of thorough reviews,” Mahagitsiri said.

He added that the non-cash items have not affected the group’s cash position, which remained strong with an amount og THB13.4bn on hand.

TTA’s Thoresen Shipping, which is currently impacted by the severe recession in the dry bulk market, reported a loss of THB128.8m excluding non-cash impairment of approximately THB4.7bn against its owned fleet.

Mermaid Maritime, the offshore and subsea arm of TTA, also posted a loss of THB8.18bn due to non-cash impairment and provisional losses totaling THB8.24bn.