Mr. Wijit Jiemwijitkul, Chief Executive Officer and Chairman of the Executive Board of Tongkah Harbour PLC, revealed that the company’s third quarter 2017 performance witnessed 84.47 million baht in sales, or a massive growth of 270 per cent, compared to 23.44 million baht in the same period last year. The company has also turned around its operations, earning 20.81 million baht in profit in the third quarter this year, but the profit dropped 41.66 per cent compared to the second quarter due to debt restructuring under its rehabilitation plan.
The company’s operations in the nine-month period (January-September 2017) saw 257.53 million baht in revenue – which is almost the same amount earned the entire year in 2016 – in effect witnessing a turnaround in profit by making 42.48 million baht compared to 211.62 million baht in losses in 2016.
Tongkah Harbour’s increase in revenue and profits came from rising tin production in the Republic of the Union of Myanmar, besides additional orders for stones due to surging demand as a result of government policies on transportation infrastructure investment. The company earlier in 2017 had projected sales of 200,000 tons of stone but went on to receive orders for more than 240,000 tons – well beyond the target. In regard to the tin business, Tongkah has been producing the material since March 2017 with a production capacity of 100 tons per month. The company is seeking to raise the number of grinders to increase tin production after finding that the stones are harder than usual. It expects to find at least 30 per cent more tin.
Mr Wijit said Tongkah Harbour’s mining concession for 88 rai has been renewed. The area has stone reserves of more than 4.68 million tons to cater to rising market demand.
Regarding the renewable energy business, the company has teamed up with Poonsuk Agricultural Cooperatives, Chumphon, to operate solar farms. Tongkah has received a contract from the Provincial Electricity Authority to sell 5 megawatts (MW) of solar power.
Concerning the real estate business, Tongkah’s The Bay Phase 1 and The Bay District witnessed more than 60 per cent of ownership transfers.
Tongkah Harbour’s 2018 operation direction will see the company continue to expand in every business it operates, especially the mining business in foreign countries such as the Republic of the Union of Myanmar and the Lao People’s Democratic Republic. Both nations have policies to withdraw concessions from concessionaires that fail to operate mining, which is a positive factor for the company since it can enjoy further mining investment opportunities. As for the mining in Thailand, Tongkah is awaiting clear policies from the government. The company’s quarry business is also enjoying continued growth thanks to the government’s policies to construct basic infrastructure and public utilities including a rail transportation system.
For the domestic renewable energy business, the company is preparing to invest in a garbage incinerator project to produce electricity at 6 megawatts of capacity. Tongkah is also expanding its solar farm investments in the Republic of the Union of Myanmar and Vietnam.
Meanwhile, in the real estate business, Tongkah Harbour will expedite ownership transfer of the property and prepare land to expand its Bay Phase 2 project.