Skytrain fares up from June — Fares will be raised on the BTS skytrain’s core 23.5-kilometre routes with effect on June 1, Bangkok Mass Transit System Plc (BTSC) announced on Monday. Current fares range between 15 and 40 baht on the original routes from Mor Chit to On Nut and from the National Stadium to Saphan Taksin. The new fares will be between 15 and 42 baht, the first price hike in eight years. Bangkok Governor Sukhumbhand Paribatra last week confirmed that BTSC, the skytrain operator, had the right to increase fares on the BTS electric railway under the company’s concession, valid for the next 17 years. (Bangkok Post website, 29/04/13)
Comment: This will only have a small impact on the company’s numbers
PTTEP profit up — PTT Exploration and Production reported better-than-expected quarterly earnings, thanks to an increase in prices and sales volume. Its quarterly earning rose 11% to Bt20.3bn, up from Bt18.3bn from the same period last year. The company’s CEO Tevin Vongvanich also announced yesterday that the company will issue bonds worth US$1 billion or about Bt30 billion within this year. The dollar-denominated bonds will be offered in a single tranche to foreign investors, to raise funds for business expansion and debt refinancing. (The Nation website, 29/04/13)
PTTEP revs up its target — PTTEP has revised up its petroleum output target by 50%to 900,000 barrels of oil equivalent per day (BOED) by 2020 from 600,000 BOED forecast earlier. Thailand’s sole petroleum explorer said since its existing projects will have produced 600,000 BOED by 2020, it will need to make another 300,000 BOED to meet the new goal, according to president and CEO Tevin Vongvanich. (Bangkok Post, 30/04/13)
Comment: We’ve noted several times that the energy sector is the cheapest in the SET, however without constant investment in new capacity, we doubt that the stock prices can increase in value.
1Q13 water sales growth of 3.5% pushes total revenue growth — Thai Tap Water Supply Plc. announced total revenue on first quarter performance, with 24.5%. YoY growth as the result of 3.5% sales volume growth and additional Bt324.6mn corporate income tax refund. Mr. Sompodh Sripoom, managing director of TTW, further disclosed that currently the company is preparing to enter into the bidding of waste to power plant with capacity of approximately 6 MGW in one municipality, and expected the bidding period would be at the end of 2Q13.” (Company release)
Comment: Just met with the CFO last week, always liked the business and the company as they essentially have a monopoly on their areas, but now the company faces the issue of having to find growth in other businesses outside of water