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Published on August 21, 2007

Managing director Chanet Phenjati said yesterday the vessel was sold for Bt76.77 million, which was booked in the second quarter. This was expected to lift the company's net profit for the year above last year's figure of Bt191 million.

However, the company expects its income this year to be about Bt802.79 million down from last year's figures, because at least five vessels have been out of service for maintenance. Its third quarter income is likely to fall by 20 per cent because three ships remain out of service, Chanet said.

Jutha Maritime's income is expected to return to normal in the fourth quarter as all its vessels will be back in service. In September, it will also negotiate with two clients - whose contracts are due to expire - and raise its charter rate by at least 10 per cent from the current rate of US$7,500 (Bt259,000) per vessel per day in both cases.

Chanet said the clients are likely to accept the new charter rates because global freight costs are increasing and demand for shipping is continually on the rise, while the supply of vessels has hardly changed.

In the first quarter of this year, Jutha Maritime ordered the construction of a new vessel because it expected the baht to appreciate. This turned out to be the right decision because of the lower US-dollar cost.

Chanet declined to reveal how many vessels the company would buy this

year.

He said the company had been significantly affected by the baht's appreciation. Jutha's revenues in the second quarter amounted to Bt294.91 million, at a rate of Bt35.09 to the US dollar.

However, if last year's exchange rate of 38.77 to the dollar had prevailed, its revenues would have surged to Bt325.81 million in the second quarter. Thus, the company's loss from the exchange rate in just three months amounted to Bt30.89 million.

In the second quarter, Jutha's net profit was Bt29.29 million, down from Bt45.79 million in the corresponding period last year.

Its net profit in the first six months of this year was Bt126 million, compared to Bt108.98 million in the first six months of 2006.

Siriporn Chanjindamanee

The Nation