Year 2008

 August

CONSTRUCTION

Energy jobs will fuel 30% TRC growth

DARANA CHUDASRI

TRC Construction projects 30% revenue growth this year to 2.1 billion baht, thanks to booming demand for new investment in the petrochemical and energy sectors.

Samai Leesakul, the TRC chief executive officer, told investors yesterday at the Stock Exchange of Thailand that the company currently had a backlog of 2.055 billion baht in orders.

The company will realise revenues of 1.4 billion baht this year.

TRC was also bidding for projects worth 15.6 billion baht in the second half of the year, including a 10-billion-baht gas pipeline project for PTT Plc.

The company posted first-half profits of 54 million baht, up slightly from 52 million the year before. Revenues fell slightly to 695.36 million baht in the first half from 730.19 million the same period last year.

Mr Samai said the decline in revenues came because 2007 included a natural gas pipeline project worth 540 million baht in Songkhla for PTT.

But gross margins this year have widened to 20.2% from 13.3% last year, while net margins were up to 7.8% from 6% last year. Mr Samai said gross margins for the full year should range from 15% to 18%.

TRC had repriced its bid quotes in the first half to give the firm a cushion against fluctuations in raw material prices, he added.

The company was also moving forward with its strategy to upgrade its position from a project contractor to a turnkey developer.

TRC is studying a possible cogeneration power project in Lat Krabang. TRC and Getabec Energy, a Thai steam boiler manufacturer, are also co-operating in a joint venture to establish a fabricated equipment firm in Rayong to serve purchase orders from Australia.

Shares of TRC on the Market for Alternative Investment closed yesterday 4.12 baht, down 0.02 baht, in trade worth 4.6 million baht.

This article is written by Bangkok Post

14/08/2008

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