First drop in total earnings
The total earnings of 519 listed companies in 2006 were down by 12 per cent from the previous year to Bt469.35 billion, the first drop in annualised income since 2001.
Of the 489 companies listed on the SET, 476 recorded overall net profits of Bt467.37 billion, also down 12 per cent from the previous year when 388 firms recorded net profits.Stocks listed in the blue-chip SET50 Index recorded net profits of Bt357.1 billion, down 17 per cent, while their sales rose 22 per cent. "The earnings dropped primarily because of higher energy costs," SET executive vice president Nongram Wongwanich, said in a statement. "Their expenses rose by 20 per cent and gross profits were only up 20 per cent, compared to 22 per cent in 2005. In addition, higher interest rates pushed up borrowing costs by 16 per cent," The fall in overall earnings was also due to a requirement for banks to set aside reserves to comply with International Accounting Standard 39. The results represented the performance of 98 per cent of the 532 companies listed on the Stock Exchange of Thailand (SET) and the Market for Alternative Investment. Excluding earnings set aside for debt provision, the decline was only 9 per cent. Allocations for provisions in 2006 totalled Bt37.01 billion compared to Bt60.27 billion in 2005. Overall sales last year rose 18 per cent to Bt5.61 trillion. Companies in the SET100 Index generated net profits of Bt370.54 billion, down 19 per cent, while sales rose 21 per cent. The three sectors with highest earnings growth were manufacturing, with an overall net profit of Bt39.99 billion, a rise of 63 per cent year on year; property and construction, with Bt82.17 billion, up 33 per cent; and consumer products, with Bt7.13 billion, an 11-per-cent rise.
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