KTIS confident of better Q-o-Q results in Q2 due to rising global sugar and oil prices

Friday 27 May 2016 16:44
KTIS Group is confident that its Q2 operating results will be aided by revenues from new power plants and by rising global sugar and crude oil prices.

Mr.Nathapun Siriviriyakul, Deputy Chief Executive Officer, Kaset Thai International Sugar Corporation Public Company Limited (SET: KTIS), a leader in sugar and connected industries, revealed that KTIS Group's top business segment by revenue remains sugar business, with Q1 revenue of THB 3.26 billion, or accounts for about 75% of the total revenue of THB 4.34 billion.

"As the global sugar and oil prices in Q2 are likely to rise from the previous quarter, we expect KTIS Group's improved quarter-on-quarter results in Q2", he noted.

Q1 revenue from the biomass power plant segment was mainly generated from the 60MW Kaset Thai Bio Power plant. Revenues will be accrued from the Thai Identity Power plant in Uttaradit province, the commercial operation date of which was 7 April 2016, starting Q2, and from the Ruampol Bio Power plant starting possibly Q3. State-of-the-art technologies are employed in these three plants, which enable them to produce high-pressure steam. Power produced from them is used for sugar production, thereby saving the costs of bagasse as fuel, and supplied to Electricity Generation Authority of Thailand.

As for the liquid sucrose and super refined sugar projects, which are supported by Nissin Sugar and Sumitomo Corporation, two of KTIS Group's strategic partners, he said that the Group will supply liquid sucrose to a leading soft drinks firm and produce super refined sugar for export to designated buyers.

In Q1/2015, KTIS Group's total revenue stood at THB 4.34 billion, a 13.4% year-on-year increase from THB 3.83 billion, and the net profit at THB 49.7 million.