SCG hit big nine-month business crop

The group last week reported that based on this year’s third quarter report, SCG in Vietnam owned $645 million worth of total asset, up 14 per cent on-year. Total sale revenue in this quarter reached $169 million, up 12 per cent on-year.

For the first nine months, SCG in Vietnam fetched total sale revenue of $463 million, up 28 per cent on-year, fueled by increases in revenue from sales of Prime Group and Vina Kraft Paper.

Also in the third quarter, SCG Sharing the Dream scholarship programme granted 400 scholarships to Vietnamese students from seven southeastern provinces and Hanoi. This flagship corporate social responsibility programme is aimed at supporting underprivileged and talented students. Under this programme, SCG has granted scholarships to more than 5,000 students in ASEAN countries, including Vietnam, Indonesia, Myanmar, Philippines, Laos and Thailand.

SCG president and chief executive officer Kan Trakulhoon has also disclosed the unreviewed consolidated financial statements of SCG and its subsidiaries for this year’s third quarter, which showed sale revenue of $3.872 billion, up 9 per cent on-year, largely due to higher chemicals prices.

The quarter’s profit registered $244 million, down 20 per cent on-year as there was a non-recurring gain of $53 million in the cement – building materials business also in this quarter.

For the first nine months of 2014, SCG recorded sale revenue of $11.443 billion, an increase of 12 per cent on-year. Profit registered $764 million, a decrease of 13 per cent on-year, which was largely attributed to the non-recurring gain of $53 million in the third quarter, the increase in non-controlling interests (minority interest), and lower equity income from associated companies.

For SCG’s combined ASEAN operation (excluding Thailand), the third-quarter sale revenue grew 9 per cent on-year to $349 million, which held 9 per cent of SCG’s total sale revenue.

The nine-month sale revenue in ASEAN amounted to over $1 billion, up 16 per cent on-year and representing 9 per cent of SCG’s total sale revenue.

As of 30 September 2014, SCG’s assets totaled $14.626 billion, while the total assets of the group in ASEAN (excluding Thailand) amounted to $2.448 billion, occupying 14 per cent of SCG’s total consolidated assets.

“SCG believes that ASEAN economy will continue to sustain its vigor, so SCG continues to invest more in the region,” Kan said.

Recently, SCG’s board of directors has approved a total investment of $93 million, of which about $87 million would be invested in two-million-tonne HVA mortar plants in Thailand, with an expected start-up in the first quarter of 2016.

Another investment is the construction-related retail business in ASEAN with an approximate $6 million investment for a 50 per cent stake in Global House International Company Limited. This investment is SCG’s ASEAN growth platform in the construction-related warehouse retailing leveraging on SCG’s market leadership and business network in this region.

“SCG continues to follow up on the investment schemes it had previously planned for ASEAN with the cement plants in Indonesia and the second line of cement plant in Cambodia expected to start their operations in 2015. The petrochemical complex in Vietnam is scheduled to be concluded its financial planning earlier next year,” Kan said.