Sponsored By

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.

Lee Hong Liang, Asia Correspondent

March 2, 2016

1 Min Read
Kalyakan - stock.adobe.com

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.

Read more about:

dry bulk shipping

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

Get the latest maritime news, analysis and more delivered to your inbox
Join 12,000+ members of the maritime community

You May Also Like