SCG announces first-quarter operating results with solid performance

May 09, 2022 | 19:27
Thai industrial conglomerate SCG has recently reported its operating results for the first quarter of 2022, demonstrating a solid performance with strategies to deal with soaring energy and raw materials costs.

To foster sustainable and long-term stability, SCG is emphasising proactive business management, timely delivery of innovations, growth strategy-driven investments, and acceleration of environmental, social, and governance (ESG) standards to strengthen business immunity for long-term growth.

According to Roongrote Rangsiyopash, president and CEO of SCG, the company's unreviewed operating results for Q1 2022 registered revenue from sales of $4.6 billion, an increase of 7 per cent on-quarter, due to higher sales across all businesses.

Meanwhile, its profit for the period reached $268 million, an increase of 6 per cent on-quarter, largely owed to the improved business performance of the cement and building materials business and higher non-chemical equity income (agricultural machinery business).

SCG announces first-quarter operating results with solid performance
SCG announces first-quarter operating results with solid performance
SCG’s CEO Roongrote Rangsiyopash met with Prime Minister Pham Minh Chinh and discussed the expansion of Long Son Petrochemicals' Phase 2 (LSP2) in Ba Ria-Vung Tau province

Yearly, revenue from sales increased by 25 per cent from higher sales revenue across all businesses mainly from higher product prices in-line with the market.

However, the company’s profit for the period fell by 41 per cent, mainly due to rising feedstock costs from the chemicals business in Q1 2022, along with the fact that the chemicals industry had better performance compared to normal operations.

In the first quarter, SCG's revenue from sales of high-value added products and services reached $1.5 billion, accounting for 34 per cent. Moreover, new product development and service solutions amounted to 17 per cent and 5 per cent of total revenue from sales.

Besides this, SCG's revenue from outside of Thailand together with exports from Thailand was 44 per cent of total revenue from sales and amounted to $2 billion in Q1 2022, an increase of 30 per cent on-year.

SCG's total assets as of March 31 amounted to $26.7 billion, of which 45 per cent represented assets in ASEAN.

SCG announces first-quarter operating results with solid performance
SCG's packaging solutions protect the environment and customers' health

As of March 31, the total assets of SCG amounted to $26.7 billion, while the total assets of SCG in ASEAN (ex-Thailand) were $15.6 billion, 58 per cent of SCG’s total consolidated assets.

Owing to the company's commitment to creating values in Vietnam's economy, in February, SCG president and CEO attended a courtesy meeting with the prime minister seeking guidance on the expansion of Long Son Petrochemicals' Phase 2 (LSP2) in Ba Ria-Vung Tau province in southern Vietnam.

SCG in Vietnam consistently pursues ESG standards by contributing to the local communities where it operates.

The LSP has progressed to 93 per cent construction completion on its petrochemical complex project in Vietnam as planned. It is readying its staff for production and sales to launch commercial operations in the first half of 2023.

SCG in Vietnam consistently pursues ESG standards by contributing to the local communities where it operates.

In the first quarter of the year, SCG was listed among the top 50 Green Growth Foreign Invested Enterprises in Vietnam at the 21st Golden Dragon Award.

Moreover, an outdoor gym at Binh Duong was completed while SCG's subsidiary, PRIME Group, provided hand-washing equipment to schools in Hai Duong and Vinh Phuc to help curb COVID-19.

As the global economic situation continues to be volatile, Roongrote concluded, “Keeping a close eye on the situation, forecasting scenarios timely, and adapting rapidly can enable businesses to continue operating in the face of a crisis. SCG has prepared for a short-term crisis through proactive risk management and long-term opportunities through a business transformation in accordance with the ESG approach.”

By Anh Duc

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