Thoresen Thai Agencies Public : TTA Announced 2Q/2019 Results with Continued Strong Shipping Performance

THORESEN THAI AGENCIES PLC Press Release

TTA CORPORATE| TTA Transport |TTA Energy| TTA Infrastructure

For immediate Release

TTA Announced 2Q/2019 Results with Continued Strong

Shipping Performance

• TTA reported positive EBITDA of Baht 212.9 million.
• Shipping Segment continued to deliver profit; its TCE rate outperformed the net market TC rate by 16%.
• Offshore Service Segment's net loss to TTA improved by 25%YoY due to higher performing vessel utilization rate.
• Agrochemical Segment's total fertilizer sales volume increased by 65%QoQ.
• Low net interest bearing debt of equity at 0.14 times, reflecting robust capital structure.

Bangkok, Thailand, 14 August 2019 - In 2Q/2019, Thoresen Thai Agencies Public Company Limited or TTA reported its consolidated revenues of Baht 3,680.3 million, increasing by 9% year-on-year due to the increasing revenues of three main business segments: Shipping, Offshore Service and Agrochemical, which contributed 40%, 21% and 24% to the consolidated revenues, respectively. Gross profit was recorded at Baht

672.0 million, slightly increased quarter-on-quarter, while EBITDA remained positive at Baht 212.9 million. Summarily, TTA reported a normalized net loss before gain (loss) from foreign exchange of Baht 91.7 million and a consolidated net loss of Baht 174.3 million in 2Q/2019.

Mr. Chalermchai Mahagitsiri, President and Chief Executive Officer, said: "Shipping Segment has consecutively delivered profits since 2017; its TCE rate outperformed the net Supramax TC rate. Meanwhile, Agrochemical Segment had a profit turnaround from last quarter as demand has picked up seasonally, and focus marketing strategies were aggressively implemented. Under high competitive environment, Offshore

THORESEN THAI AGENCIES PLC Press Release

TTA CORPORATE| TTA Transport |TTA Energy| TTA Infrastructure

Service Segment's net loss to TTA improved as vessel working days and vessel utilization rate increased. In addition, strengthening Thai Baht resulted in losses from foreign exchange, mostly considered unrealized, compared to gains in 2Q/2018. In summary, TTA reported a normalized net loss before gain (loss) from foreign exchange of Baht 91.7 million and a consolidated net loss of Baht 174.3 million in 2Q/2019.

Looking ahead in the next quarter, the Baltic Dry Index (BDI) is expected to continue in an upward trend, due to the restart of Vale mine in Brazil which has been shut after a tailing dam collapse in late January. Meanwhile, the Offshore Service Segment will focus on increasing operational efficiency and minimize loss, and still has an order book worth US$ 73 million to be performed; plus, its Middle East and South East Asian business units have recently been awarded subsea contracts. For Agrochemical Segment, PMTA will continue to drive growth in the export market. In the food and beverage segment, Pizza Hut and Taco Bell will continue the store expansion strategy to achieve the target profitability in the future."

Key Strategic Business Segment Performance

Shipping Segment:

Thoresen Shipping Group's revenues in 2Q/2019 increased 4% year-on-year to Baht 1,462.9 million, mainly due to increased service days for chartered-in vessels. EBITDA was recorded at Baht 245.1 million, increasing by 3% quarter-on-quarter. Accordingly, net profit to TTA was reported at Baht 85.5 million.

In 2Q/2019, Shipping's time charter equivalent (TCE) rate was at US$ 9,385 per day, which outperformed net Supramax TC rate of US$ 8,061 per day by 16%. TCE rate comprised owned fleet TCE rate of US$ 8,777 per day and gain from chartered-in vessels of US$ 609 per day. The highest TCE rate was at US$ 16,620 per day. Owned fleet utilization rate remained high at 100%, while vessel operating expenses remained low at US$ 3,781 per day.

At ending 2Q/2019, Shipping Segment owned 21 vessels with an average size of 55,285 DWT and an average age of 12.21 years. No vessel was acquired or sold in this quarter.

Offshore Service Segment: In 2Q/2019, Mermaid Maritime Public Company Limited or Mermaid Maritime recorded revenues of Baht 784.1 million, increasing by 14% year-on- year. Performing vessel utilization rate improved drastically from 70% in 2Q/2018 and

THORESEN THAI AGENCIES PLC Press Release

TTA CORPORATE| TTA Transport |TTA Energy| TTA Infrastructure

60% in 1Q/2019 to 94% in 2Q/2019 as operational efficiency has been improved by cold- stacking one vessel.

Gross profit significantly increased from Baht 3.1 million in 2Q/2018 to Baht 79.8 million in 2Q/2019. Accordingly, gross margin increased year-on-year from 0.5% in 2Q/2018 to 10% in 2Q/2019. Meanwhile, share of profit of associates and JVs was stable quarter-on- quarter at Baht 38.0 million.

In drilling business under one of its associates, three high specification jack-up drilling rigs have performed strongly in the Middle East with near 100% utilization. To date, one contract was extended for another 3 years with the same customer until June 2022 while the others are scheduled to expire in October and December 2019, with a probability of renewal for another 3 years up to 2022.

As a result, Mermaid Maritime's net loss to TTA was improved by 25% year-on-year to Baht 107.7 million in 2Q/2019.

Agrochemical Segment: PM Thoresen Asia Holdings Public Company Limited or PMTA reported sales revenues of Baht 858.9 million in 2Q/2019, increasing 22% year-on-year and 58% quarter-on-quarter, mainly due to higher fertilizer sales volume. In addition, sales revenue of pesticide rose 45% year-on-year to Baht 60.8 million.

Total fertilizer sales volume in 2Q/2019 increased 17% year-on-year to 56.7 KTons due to higher sales volume of single fertilizer and higher export sales volume, especially from Africa market; it also picked up quarter-on-quarter from seasonal growth, as well as from the successful marketing strategies.

In detail, domestic fertilizer sales volume, which accounted for 68% of total fertilizer sales volume, increased by 14% year-on-year to 38.5 KTons, while export fertilizer sales volume increased by 25% year-on-year to 18.3 KTons.

Besides, the total income from factory area management services and other income amounted to Baht 18.8 million, which decreased by 11% year-on-year in 2Q/2019 because some space was internally used while the remaining space was fully rented.

Summarily, PMTA reported EBITDA of Baht 36.5 million, net profits of Baht 5.1 million and attributable net profits to TTA of Baht 3.5 million, in 2Q/2019.

THORESEN THAI AGENCIES PLC Press Release

TTA CORPORATE| TTA Transport |TTA Energy| TTA Infrastructure

Investment Segment: TTA's Investment Segment focuses on food & beverage (F&B), water, and logistics sectors.

• Food & Beverage

1. PH Capital Company Limited ("PHC"), a 70% owned subsidiary of TTA, is the sole franchisee of Pizza Hut business in Thailand. As at 30 June 2019, there were 141 outlets nationwide.
2. Siam Taco Company Limited ("STC"), a 70% owned subsidiary of TTA, is the franchisee of Taco Bell outlets in Thailand. Taco Bell is world-famous,Mexican-inspired restaurant chain from the USA. Up to date, Taco Bell have opened 2 outlets in Thailand. The first outlet is located at the Mercury Ville @ Chidlom, while the second outlet is located at Siam Paragon; both outlets received overwhelming response.

• Water

Asia Infrastructure Management (Thailand) Co., Ltd. ("AIM"), a 80.5% owned subsidiary of TTA, is the water contractor/service company. AIM also owns a concession to sell tap water in Luang Prabang, Laos, through a 66.7%-ownedsubsidiary. So far this year, AIM has submitted bids on governmental projects with the aggregated project value over Baht 1 billion.

*********************************

About TTA

Thoresen Thai Agencies Public Company Limited, or TTA, is a strategic investment holding company that is listed on the Stock Exchange of Thailand, with an investment policy to achieve growth through a balanced portfolio that is diversified both locally and internationally. Included in its current business portfolio are shipping, offshore service, agrochemical, and investment.

For more information please contact:

Wararat Pharahan (Aor) Tel: [phone] Email: [e-mail]

Sitth Chongprasobtam (Ome) Tel: [phone] Email: [e-mail]