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SCG's profit up 29% in Q1

Released at: 13:52, 29/04/2017

SCG's profit up 29% in Q1

Photo: SCG

Thai group's Q1 business results see growth due to chemicals business and investment in ASEAN.

by Khanh Chi

Thai industrial conglomerate the Siam Cement Group (SCG) has announced its business performance in the first quarter of 2017, with profit up 29 per cent year-on-year thanks to its chemicals business. ASEAN investments also prospered, as it worked with partners in Vietnam in the first petrochemical complex in the country.

The company’s unaudited business results for the first quarter show revenue from sales up 6 per cent year-on-year to around $3.4 billion. Profit reached $495 million, an increase of 29 per cent, attributed mainly to the solid performance of its chemicals business and non-recurring gains from the sale of investment assets and non-used assets. Export revenue, which accounted for 27 per cent of SCG’s total revenue from sales, reached $884 million.

In SCG’s operations in ASEAN (excluding Thailand), revenue from sales rose 15 per cent year-on-year, to $413 million, representing 13 per cent of the group’s total revenue from sales. Total assets as at the end of March amounted to some $16 million, while assets in ASEAN (excluding Thailand) totaled $3.9 million, or 24 per cent of total consolidated assets.

In Vietnam, it owns nearly $1.4 million in assets, an increase of 72 per cent year-on-year. Revenue from sales was $186 million, up 30 per cent year-on-year and primarily from packaging and its cement - building materials business.

“SCG’s investment in ASEAN is in line with its vision,” said Mr. Roongrote Rangsiyopash, President and CEO of SCG. “It recently increased its investment in the Long Son Petrochemicals project, the first integrated petrochemical complex in Vietnam, to 71 per cent.”

“The project is located in Ba Ria Vung Tau province near Ho Chi Minh City, a location with promising economic growth. It has incorporated state-of-the-art technology of international standard for health, safety, and the environment. Its output will meet rising domestic demand and in ASEAN. SCG is now in the final stage of the financial investment decision with its Vietnamese partner. Construction is expected to take five years, with plans for commercial operations in 2022.”

In the cement - building materials business, SCG recently acquired the Vietnam Construction Materials JSC (VCM), an integrated cement operator with a production capacity of 3.1 million tons per year. Located in central Quang Binh province, the plant will serve nearby markets in the first phase and later serve the entire country.

In the packaging business, SCG’s Vina Kraft Paper Co. Ltd. recently completed the installation of new manufacturing lines to expand capacity at its packaging paper business in Vietnam. This will enable SCG to achieve a total production capacity of 500,000 tons per year and retain its position as the largest packaging paper manufacturer in Vietnam.

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