An infographic shows SCG's operating results for Q2/2024. — Photo courtesy of the company

Southeast Asian conglomerate SCG reported sales revenue of over VNĐ16.36 trillion (US$656 million) in the Vietnamese market in the first half of this year, up 12 per cent year-on-year.

This rise was mainly due to an increase in sales from Long Sơn Petrochemicals Company Limited (LSP), SCG said in a note.

LSP is expected to begin commercial operations in October 2024 and it is anticipated that commercial revenue will be $600 million in 2024 and $1.5 billion in 2025.

However, challenges persist due to the global economic slowdown and oversupply in the chemical industry. The LSP, being a capital-intensive project, is expected to incur annual depreciation and interest expenses, the company said.

For SCG’s operation in ASEAN (excluding Thailand), the revenue from sales in H1 recorded a 12 per cent increase year-on-year, amounting to over $1.32 billion, contributing to 19 per cent of SCG’s total revenue from sales. This growth was primarily driven by improving market conditions in regional operations, especially in Việt Nam.

As of 30 June, SCG's total assets amounted to above $25.7 billion. Of these, the total assets of SCG in ASEAN (ex-Thailand) topped over $11.79 billion, or 46 per cent of SCG’s total consolidated assets.

Despite being impacted by the petrochemical trough and tensions from geopolitical conflicts, intense market competition from Chinese imports, and slow domestic economic recovery due to weak spending power among the middle to low-income groups, SCG has actively enhanced its business agility and operational resilience.

It has tackled energy cost management, put a focus on improving the supply chain and distribution of products by employing technology for delivery planning and goods receipt to reduce work time and fostered the application of Artificial Intelligence (AI). — VNS