SCG records sale and profit declines in Q3

Thursday, Nov 03, 2022 15:12

Roongrote Ransiyupash, President and CEO of SCG and Thammasak Sethaudom Vice President-Finance and Investment & CFO,SCG. — Photo courtesy of SCG

Thai conglomerate SCG has announced operating results for the third quarter of this year, reflecting a drop in sales and profits due to soaring and volatile global energy prices.

The company's revenue from sales hit US$3.9 billion in the period, a drop of 7 per cent quarter-on-quarter, due to lower chemical’s product prices driven by softer petrochemical’s demand due to the trough of chemicals business.

Its profit for the period reached $67 million, a decrease of 75 per cent quarter-on-quarter largely attributable to lower chemical’s spreads, higher energy cost, together with lower seasonal dividend.

Roongrote Rangsiyopash, President and CEO of SCG said operating resultswere significantly impacted by the energy prices that reached a 10-year high. This was the consequence of the Russia-Ukraine conflict, which has resulted in a significant increase in SCG's energy costs on top of the deepest petrochemical trough in 20 years.

"Global economic slowdown is expected as global interest rates rise. This will be exacerbated by China's economic downturn as a result of its Zero-COVID Policy," he said

On a brighter note, SCG's revenue from sales climbed by 8 per cent year-on-year, mostly due to higher product prices in line with the market of cement and building materials business and SCGP.

In the nine-month period, SCG also registered revenue from sales of $12.92 billion, a yearly rise of 15 per cent. This is owing to higher sales across all businesses mainly from higher product prices in-line with the market.

However, its profit for the period totalled $613 million, down 45 per cent year-on-year, as a result of higher feedstock and energy costs as well as lower equity income in chemicals business.

For SCG’s operation in ASEAN, the revenue from sales in Q3 recorded a 12 per cent increase year-on-year to $1.11 billion or equivalent to 28 per cent of SCG’s total revenue from sales. This includes sales from both local operations in each ASEAN market and imports from the Thai operations.

SCG is now has a total of 24 companies across Viet Nam, recruiting more than 16,000 employees. — VNS

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