Thai Listed Companies Post 144% Increase in 1H21 Earnings as Energy Sector Pushes Higher

• H1 total net profits surged 144.2 pct YoY to THB 528.34 billion
• H1 combined sales up 18 pct YoY to THB 6.08 trillion
• Performance in Q2 2021 lowered on quarter due to the third wave of the pandemic

Companies listed on The Stock Exchange of Thailand (SET) reported an increase in first-half net profit compared with the same period a year earlier when the country’s economy slowed down considerably. For the second quarter of 2021, their financial results slightly lowered due to the third wave of COVID-19 pandemic.

SET Senior Executive Vice President Manpong Senanarong said that 738 SET and Market for Alternative Investment (mai)-listed firms, making up 97.4 percent of the total 758 companies (excluding property funds, infrastructure funds and non-compliance or NC), submitted their financial reports for the second quarter and the first half ended June 30, 2021. Of the total, 566 securities or 76.7 percent recorded net profits.

 

In the first half of 2021, listed companies delivered a significant increase in financial performance due to a low-base effect in the same period of 2020 when the soft oil price and the start of the COVID-19 outbreak dealt a blow on their financial performance.

For the first half of 2021, listed companies’ combined sales amounted to THB 6.08 trillion (approx. USD 182.26 billion) or an 18 percent rise, with core operating profits of THB 804.95 billion or a 118.6 percent surge, and net profit of THB 528.34 billion or a 144.2 percent jump.

The higher operating performance contributed to the higher prices of oil and commodities including petrochemicals, steel, rubber and palm oil, as well as operators’ adaptability to continuously run business. Excluding the Energy & Utilities, and Petrochemicals & Chemicals sectors, listed companies’ total sales increased 7.2 percent, core operating profit soared 32.2 and net profit jumped 54.8 percent.

 

Listed firms’ performance in the second quarter of 2021 lowered from the previous quarter due to the third wave of the COVID-19 spread. Their total sales during the April to June period amounted to THB 3.12 trillion, with core operating profits of THB 408.57 billion and net profits of THB 265.40 billion.

 

Regarding Thai listed companies’ financial positions at end-Q2, 2021, they applied the prudent financial policy to keep the capital structure strong, with the debt-to-equity ratio (excluding those in the Financials industry group) decreasing to 1.50 times from 1.54 times in the same period last year.

 

“The situation in the first half of 2021 improved from the previous year due to the start of the global economic rebound which has bumped up oil and commodity prices and propelled Thai listed companies’ financial results. Notably, positive impacts were felt in some business sectors such as sea freight pickup from the growing demand in marine transportation and the outbreak giving a boon to the medical business providing infection test and rehabilitation center services. However, the service sector still bears the brunt of the pandemic disruption,” Manpong added.

 

mai-listed companies significantly performed better in all financial aspects in H1/2021 compared with the same period in 2020, with total sales at THB 85.30 billion, core operating profits and net profit at THB 5.62 billion and THB 3.85 billion, respectively.