The President of the SET, Mr. Kittiratt Na-Ranong, in announcing the listed company performance for the six months period ended 30 June 2002, said that, as of 15 August 2002, 371 out of a total of 384 companies (97%) listed on the SET had already submitted their financial statements. These statements show that there are 299 profitable firms (81%) against only 72 loss-making firms (19%). Total profits from all the profit-making companies equaled 119,477 million baht, an improvement on last year's 92,351 million baht by almost 30%.
"The companies listed on the SET reported improved Q2 performance of well over 65% compared to Q1, when total profits of 44,990 million baht were recorded. Regarding their performance over six-months, 81% of firms reporting (299 out of 371 companies) collectively reported net profits of 119,477 million baht, accounting for an increase of 29% compared to the same period last year (when profits of 92,351 million baht were recorded). The top five most profitable sectors that includes 70% of all firms reporting, which collectively had net profits of 59,801 million baht, are: Energy, Transportation, Building and Furnishing Materials, Property Development, and Commerce. Only 19% of firms reporting posted net losses (72 companies)," the SET President said.
By sector, the 292 listed companies in the Industrial and Service sectors, which represent a major group amongst companies listed on the Exchange (but excluding financial institutions and companies under rehabilitation - the REHABCO Sector), recorded improved operational results in the first six months of 2002. Total net profits reached 85,068 million baht, or a 49% increase from last year, when 57,154 million baht in profits were recorded. Improved profits reflected increased sales income, improved gross profit margins, and greatly reduced interest rates that lessened companies' interest expense burden. Furthermore, a stronger baht resulted in exchange rates gains of 12,509 million baht, whereas last year net exchange rate losses amounted to 4,921 million baht.
The industries that reported losses are in the Printing and Publishing Sector, and the Machinery and Equipment Sector, which collectively reported losses of 36 million baht. In regard to the eight companies listed on the MAI, six companies reported profits while the remaining two reported losses. The six recorded profits of 61 million baht, a decrease of 31% from last year's 88 million baht.
Mr. Kittiratt went on to say that: "For the first six months, the thirteen commercial banks, plus the Industrial Finance Corporation of Thailand, posed total net profits of 13,170 million baht, a reduction of 19,895 million baht or 60% compared to last year. These profits were the result of reserve transactions of Siam City Bank Plc. (SCIB) worth 45,229 million baht being reversed to income. If this transaction is excluded, the commercial banks showed a 208% improvement in profits compared to last year's losses of 12,164 million baht (excl. the SCIB transaction). This was the result of a 13% increase in income from interest and dividends before provision for doubtful debts, which is a product of expanded commercial credits and improved spreads as a result of a reduction in deposit and loan interest rates. Moreover, non-interest income also increased by 26%, whereas reserves for doubtful debt decreased by 49%."
The performance of the sixteen Finance and Securities Companies showed a similar trend. All thirteen companies reported net profits. Total net profits for the first six months in this sector were recorded at 3,460 million baht, an increase of 144% on last year's 1,416 million baht. This improved performance was a result of increased interest and dividend income plus a decrease in reserves for doubtful debts, as all of these companies have already reached the required level of reserves.
"Companies that derive their income from the securities business only also posted improved profits of 531 million baht in the first six months of 2002, compared to losses of 37 million baht last year. This is due to improved income derived after the minimum brokerage fee was reimposed to replace the previous liberalized regime," Mr. Kittiratt said.
The SET Executive Vice President, Ms. Patareeya Benjapolchai, disclosing the performance of companies under rehabilitation (the REHABCO Sector), said that: "45 companies out of 52 have already submitted their six-monthly financial statements. Of these, 22 companies recording net profits and 23 companies recorded net losses. Total net profits were recorded at 16,996 million baht, or an increase of 119 times on last year's 141 million baht. These companies gained from exchange rate and lessened interest expenses whereas profits from debt restructuring decreased by 27%."
"As many as 80%, or 149 companies, reported progress on debt restructuring as of July 31, 2002. These companies collectively have total debts outstanding of 1,159,786 million baht, with a total of 41,227 million baht worth of debt already restructured, a 4.39% rise from Q1.
Total debts restructured as of July 31, 2002, were recorded at 979,448 million baht. These debts were from the 38 companies having undergone debt restructuring and rehabilitating processes through the Bankruptcy Court, which had 477,581 million baht worth of debts restructured (49% of total outstanding debts). In general, the strategies utilized included debt-payment extensions (52%), securitization (16%), capital increases (8%), and principal and interest reductions (24%), along with asset transfers and other processes," Ms. Patareeya said.
