Polyplex says PET market looking brighter

Polyplex (Thailand) Plc sees clear signs of an upturn in the global polyethylene terephthalate (PET) business cycle, based on three quarters of steadily improving results, said general manager Manish Gupta.

The SET-listed PET film producer reported total revenue of 1.23 billion baht in its fiscal third quarter ending on Dec 31, 2006, an increase from 1.23 billion in the previous quarter and 1.02 billion in the fiscal first quarter. Net profit has also risen steadily, to 114.6 million baht in its third quarter compared with 75.39 million in the second quarter and 30.94 million in the first quarter.

The fact that profit rose more dramatically than revenue reflected improving margins and declining raw material costs, said Mr Gupta.

Last year, he said, the industry witnessed an oversupply. The situation was compounded by a surge in input costs caused by crude oil prices reaching almost $75 per barrel, as well as the strong baht.

This year, demand is expected to improve gradually, resulting in a better demand-supply balance by this year end.

Mr Gupta said that Polyplex, with long experience and strategic positioning, had emerged as a major player in the PET film industry, both in Thailand and around the world by increasing its product range, especially in value-added products.

On the cost front, Polyplex has switched to cheaper natural gas from fuel oil in January, which will help reduce costs and also be more environmentally friendly.Polyplex plans to set up an extrusion coating plant in Thailand with completion in the last quarter of this year, as well as an additional PET thin film line at its subsidiary in Turkey by the second quarter next year.

The original line in Turkey is now operating at a 100% utilisation rate, just four quarters after it opened in December 2005.

Shares of Polyplex (PTL) closed yesterday on the SET at 3.72 baht, down two satang, in trade worth 4.45 million baht.

Source: Bangkok Post by Post Reporters
Friday February 16, 2007