ITD outlook cut

ITD outlook cut

IN Brief

CONSTRUCTION :Tris Rating has cut the rating outlook for Italian-Thai Development Plc to negative from stable over concerns about the company's medium-term profitability.

Tris also affirmed the company's rating of A-, based on ITD's position as the largest general construction contractor in Thailand, its strong backlog, broad product line, as well as track record and expertise to perform large and complex projects.

The agency said delays in government spending projects as well as weak overseas operating performance would constrain ITD's efforts to restore profitability. The company in 2006 posted a nine-month net loss of 1.42 billion baht, due primarily to provisions for a potential construction loss and contingent liabilities of a special purpose vehicle (SPV).

ITD shares closed yesterday on the Stock Exchange of Thailand at 4.52 baht, up 28 satang, in trade worth 190 million baht.

High margins foreseen

PETROLEUM :Thai Oil Plc and Rayong Refinery Plc (RRC) have forecast that refining margins will remain high this year.

Thaioil managing director Viroj Mavichak said the refining margin in the first week of this year was promising at US$5-6 per barrel. The company has forecast an average margin over the full year at $4-5 per barrel, which is considered good for local refineries.

Chainoi Phuenkosoom, the RRC president, said the oil refining business outlook this year remained favourable since demand still outpaced supply, particularly the continuously rising demand from China and India.

Additional capacity from new refineries is not expected to become available this year but is expected to come online next year and in 2009.

However, he said local refining margins would be reach the levels of $8-10 per barrel as happened last year when oil prices began to rise rapidly.

19-year bonds at 5.64%

DEBT MARKET :The Bank of Thailand yesterday auctioned two billion baht in 19-year debt-restructuring bonds for an average accepted yield of 5.6425%. Accepted bid yields ranged from 5.607% to 5.67%, with the coupon rate 6.15% and the bid coverage ratio 5.45 times.

Also sold were five billion baht in seven-year government bonds for an average yield of 4.9582%. Accepted bid yields ranged from 4.93% to 4.977%, with the coupon rate 5.25% and bid coverage of 3.48 times.

The central bank also sold 1.5 billion baht in 12-year bonds for an average yield of 5.2718%. Accepted bid yields ranged from 5.25% to 5.289%, with the coupon rate 5.625% and bid coverage of 4.33 times.

Bangkok Post
Thursday January 11, 2007