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Energy, utilities lead the way for SET in Q2

COMPANIES listed on the Stock Exchange of Thailand reported a net profit of Bt203.71 billion in the second quarter, up 20.62 per cent from a year earlier, with the energy and utilities, banking, and property-development sectors the top performers.

Aggregate earnings were compiled from 482 listed firms, or 92.87 per cent of the total 519 companies (excluding those in the non-compliance and non-performing groups), in their financial statements ending June 30. Of the reporting firms, 392, or 81.32 per cent, made net profits in the April-June period.

SET senior vice president Paveena Sriphotong said the second-quarter earnings growth was driven by the global economic recovery, particularly in the energy and utilities sector, which was underpinned by higher world oil prices, increasing sales, and foreign-exchange gains.

Companies relating to foreign investment and exports such as foods, electronic parts and construction materials reported growing sales compared with the first quarter, in line with rising demand of the leading industrialised countries.

However, the sluggish domestic economy weighed down the income growth of businesses relating to domestic consumption.

All in all, Thai companies were able to control, maintain and manage costs and expenses, keeping their gross profit margins at 18.82 per cent. Profit margins in the second quarter were 7.15 per cent, up from 6.35 per cent a year ago.

"Although the political situation was improving during the second half of the second quarter, listed companies' sales remained stable, while net profits, excluding extra items, decreased 6 per cent from the past quarter," Paveena said.

"Costs were under control, but expenses of sales and administration were higher. While transport, tourism and information technology were affected, other businesses performed better compared with the first quarter."

Total sales of the 482 firms in the second quarter were up 7.69 per cent to Bt2.85 trillion year on year. In the first six months, total sales rose 6 per cent to Bt5.64 trillion, while net earnings were up 2.88 per cent at Bt426.48 billion from a year earlier.

The top five firms, in descending order of net profit-making in the first six months, were PTT, PTT Exploration and Production (PTTEP), Siam Commercial Bank (SCB), Kasikornbank (KBANK) and Bangkok Bank (BBL).

Top performers energy and utilities, banking, and property development saw sales and profits increasing year on year, both in the second quarter and in the first half.

They had a combined net profit of Bt244 billion in the first six months, or 57.32 per cent of the total earnings.


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