Rice exports up 24%

Business News - Thursday December 20, 2007

IN BRIEF

Rice exports up 24%

AGRICULTURE : Rice exports increased 24% by volume in the first 11 months of the year compared with 2006 as the government stepped up sales to reduce large state inventories.

Exports totalled 8.44 million tonnes between January and November, according to a Commerce Ministry report. The sales earned $3.14 billion, 36% more than a year earlier, said a ministry official.

The increased shipments helped expand the value of Thailand's exports to a record in October, the Bank of Thailand said last month. The government has been selling rice bought at heavily subsidised prices by the Thaksin Shinawatra administration after stockpiles exceeded the capacity of state warehouses.

Apiradi Tantraporn, director-general of the ministry's Foreign Trade Department, forecast last month that rice export volume would expand by 22% to a record nine million tonnes this year, ahead of a target of 8.5 million tonnes. BLOOMBERG

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TMB interest scrapped

BANKING :TMB Bank said yesterday that regulators had rejected a petition to pay interest in January to holders of its $200 million in hybrid tier-one instruments.

TMB president Subhak Siwaraksa said the terms of the securities stated that the bank would not have to pay interest if it recorded a loss during the prior financial period, and that non-payment would not constitute a default.

However, he said TMB had proposed to the Bank of Thailand that it was still capable of paying interest to holders of the bonds on Jan 2 even though it expected to record a loss for the accounting period to Dec 31.

TMB shares closed yesterday on the SET at 1.40 baht, down one satang, in trade worth 39.4 million baht.

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More licences awarded

ENERGY :The Energy Ministry has awarded exploration licences for eight more petroleum fields from the 20th concession bidding round held in May.

Energy Minister Piyasvasti Amranand said the new licences covered a total of 1,000 square kilometres in three fields onshore and five offshore fields, with an estimated US$42 million expected to be invested in exploration.

Commercial production from the fields could generate up to $74 million for the country, he added.

The new licensees include Chevron Petroleum (Thailand), Mitsui Oil Exploration, Nu Coastal (Thailand), PTT Exploration & Production, Hess Exploration (Thailand), Twinza Oil of Australia and UK-based Salamander Energy Ltd.

The eight licences still require cabinet approval and the Energy Ministry is now reviewing another 19 applications.

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More focus on spot rates

CURRENCY :The Bank of Thailand plans to reduce its use of forward contracts and focus more on the spot market and open market operations for managing the exchange rate.

The shift is due to the relatively high costs incurred for swap contracts relative to transactions in the spot and money markets, sources said. Existing swaps will be gradually allowed to mature rather than be rolled over under the new policy.

As of Dec 7, the Bank of Thailand had $18.1 billion worth of forward contracts outstanding, down from $18.3 billion the week before. Thai Oil beats deadlinePETROLEUM :Thai Oil Plc, the country's biggest oil refinery, said yesterday that it had completed expansion of its refinery a week earlier than planned.

The expansion, which was completed on Dec 5, increased refining capacity by 50,000 barrels to 275,000 barrels a day, the company said yesterday.

TOP shares closed yesterday at 82.50 baht, down 50 satang, in trade worth 381.23 million baht. BLOOMBERG

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BH automating lab

HEALTH CARE :Bumrungrad International is investing 100 million baht to automate its laboratories to help physicians diagnose and interpret lab test results quickly and accurately, according to CEO Mack Banner.

The country's largest private hospital has awarded the contract to California-based Beckman Coulter Lab Automation. The technology reduces lab turnaround time, ensures accuracy and safety, and increases work efficiency.

''Our new clinic building is designed to double our capacity from 3,500 outpatients per day to 6,500. As we expand into this building in 2008, the current hospital facility will be modified to accommodate more patient beds,'' he said. ''We expect more than 1,000 patients a day will require lab service.''

Bumrungrad Hospital (BH) shares closed yesterday on the SET at 39.25 baht, unchanged.

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6-year bonds yield 4.83%

DEBT MARKET :The Bank of Thailand yesterday sold 11 billion baht worth of six-year bonds for a weighted average accepted yield of 4.8382%. Accepted bid yields ranged from 4.81% to 4.847%, with the bid coverage ratio 1.77 times.

Bangkok Post