Year 2009

 April 2009

PTTCH gets approval to raise B30bn
Funds for grabbing opportunity in slump intact

Business

By YUTHANA PRAIWAN

PTT Chemicals (PTTCH), Thailand's leading olefins maker, will raise 30 billion baht in additional capital for its five-year investments and future acquisition projects, said president and CEO Veerasak Kositpaisal.

The company's shareholders' meeting yesterday gave approval to raise 30 billion baht in addition to 4.6 billion remaining from 32 billion approved two years ago.

The PTT subsidiary plans to spend 60 billion baht in the five years to 2014 on expanding downstream projects, buying operating assets and sustaining liquidity.

"Since the shareholders have approved our raising more funds, we have greater room of 34.6 billion baht to grab opportunity while some peers may be in trouble," said Mr Veerasak.

He said the industry's downturn had not directly affected the company since its products are mostly in daily use and are not focused in the hard-hit automobile and electronic industries.

IRPC Plc, also under PTT's umbrella, is planning to generate income from its supporting facilities, of which it currently uses only 50% of capacity.

IRPC CEO Pailin Chuchottaworn said the group would gain rental fees by allowing other companies to use its land, deep-sea port, liquid tanks and gas-fired power plant.

"We use only 30% of our liquid-tank capacity for our business, so this could be our new source of income," he told the annual shareholders' meeting yesterday.

The policy will start from 2010 and generate 1 billion baht per year.

The company last year recorded total revenue of 244.7 billion baht in 2008, up 8% from 2007, with a net loss of 18.26 billion baht, mainly reflecting inventory losses.

IRPC's new 220-megawatt gas-fired power plant will be ready to operate this year, replacing a 170-MW fuel-oil power plant. The new plant will give the company excess output of around 70 MW and produce steam as a byproduct for selling to nearby factories.

"Apart from oil and petrochemical prices being stable, which will help us turn back to a normal track, we also hope from this new business," he said.

At the shareholders' meeting IRPC also gained approval to buy back an offshore debenture issued last year worth US$13 million.

PTTCH shares closed yesterday on the SET at 33.75 baht, up 1.25 baht, in trade worth 149 million baht. IRPC gained six satang to 1.96 baht in trade worth 39.5 million baht.

By Bangkok Post

April 9, 2009

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