SCG reports operating results for Q1/2012

Kan Trakulhoon, president  and CEO of SCG, disclosed the unreviewed consolidated financial statements of SCG and its subsidiaries for the first quarter of 2012, which showed profit for the period of $193 million, a decrease of 35 per cent year-on-year attributed to the trough in chemicals margins from the global excess supply and global demand weakness.

Revenue from sales increased 11 per cent year-on-year to $3.319 billion from volume growth and higher product prices in most businesses.

On a quarter-on-quarter basis, profit for the period increased 87 per cent quarter-on-quarter as the cement and building materials businesses have recovered from the Q4/2011 flood disruptions. Revenue from Sales increased 17 per cent quarter-on-quarter.  

For the operating results of SCG in Vietnam in the first quarter, it reported revenue from sales at $75 million, a 7 per cent growth year-on-year.

Recently, SCG, Qatar International Petroleum Marketing Company (QPI), PetroVietnam  and Vinachem jointly signed the joint venture agreement to invest in Vietnam’s first petrochemicals complex, reaffirming commitment towards the $4.5 billion project.  

Besides, Thai Plastic and Chemicals Co.,Ltd (TPC), a subsidiary of SCG  acquired 9.82 million shares (22.67 per cent) in Tien Phong Plastics Joint Stock Company (NTP) and 5.85 million shares (16.73 per cent) in Binh Minh Plastics Joint Stock Company (BMP). NTP and BMP are leading PVC pipe producer in Vietnam. At present, total assets of SCG in Vietnam increased 28 per cent to $370 million.

The total assets of SCG as of March 31 amounted to $12.477 billion.
 
The operating results of SCG’s major businesses for the first quarter were as follows:

SCG Chemicals reported revenue from sales of $1.706 billion, an increase of 9 per cent year-on-year from the increase in sales volume. Profit for the period amounted to $40 million, decreased 74 per cent year-on-year.  

SCG Paper reported revenue from sales of $451 million, increased 2 per cent year-on-year from packaging paper business. Profit for the period amounted to $33 million, decreased 4 per cent year-on-year.  

SCG Cement reported revenue from sales of $519 million, an increase of 13 per cent year-on-year. Profit for the period registered $81 million, increased 12 per cent year-on-year.

Kan said, “SCG continues to drive high value added product to achieve 50 per cent to total sales by 2015 aligning the company’s business strategy. In the first quarter, high value added sales achieved 34 per cent of total sales, amounted to $1.134 billion, recorded 25 per cent increase from the same period last year.”  

As for our ASEAN business expansion plan, SCG continues to move ahead with its vision to gear up for the establishment of ASEAN Economic Community. For the Indonesian market, after having completed the transaction to acquire the entire stake in Boral Indonesia (BI), a leading ready-mix concrete producer in Indonesia, SCG has begun to integrate BI into SCG’s business portfolio. SCG’s ASEAN businesses continue to see expansion growth, as an approximate 10,000 of its employees are now working outside of Thailand, representing 26 per cent of the company’s total workforce, when compared to SCG’s base case estimate of 25 per cent in 2015.

As for SCG business in ASEAN market outside Thailand, the revenue from sales in the first quarter amounted to $205 million, a 21 per cent increases from the same period of last year, which is 6 per cent of total sales of SCG, and the total assets as of March 31, 2012 amounted to $1.707 billion, which is 14 per cent of total assets of SCG.