SCG reports H1/2017 Operating Results, showing similar profit y-o-y due to good performance from the first quarter. SCG reveals that investment strategies for a sustainable ASEAN is according to plan with approval for the first petrochemicals complex in Vietnam that will enhance business competitiveness by possessing world class technology. Moreover, SCG innovation has a significant progress with recent attempt to connect worldwide collaborations from research institutions, science and technology entrepreneurs, and startups. This emphasizes SCG’s dedication to innovate products and services for tomorrow under a faster evolving needs of market and consumer.
Mr. Roongrote Rangsiyopash, President and CEO of SCG, disclosed the company’s unaudited Operating Results for Q2/2017, with registered Revenue from Sales of 108,825 MB, remaining flat y-o-y. In consequence, Profit for the Period reached 13,252 MB, a decrease of 17% y-o-y and dropped 24% q-o-q, mainly due to the inventory loss, strong competition and softness in the domestic market in Cement–Building Materials business. SCG’s Profit for the first half of 2017 registered 30,638 MB, an increase of 4% y-o-y, attributed to the strong Q1/17 performance while Revenue from Sales increased 3% y-o-y by increasing to 225,093 MB. Export revenue in the first half of 2017 accounted for 27% of SCG’s consolidated Revenue from Sales, representing an increase of 2% y-o-y to 60,689 MB, mainly from exporting to markets in China and South Asia.
The performances of SCG in ASEAN excluding Thailand in H1/2017
SCG’s Revenue from Sales registered 52,000 MB, which is 5% y-o-y growth and amounts to 24% of SCG’s total Revenue from Sales. As of 30 June 2017, SCG’s total assets in ASEAN excluding Thailand stands at 137,783 MB or 25% of the company’s total assets.
The total assets of SCG as of June 30, 2017 amounted to 552,373 MB
The Q2 and first half of 2017 operating results by business units are as follows:
- SCG Chemicals recorded Q2/2017 Revenue from Sales of 49,585 MB, remaining flat y-o-y while decreasing of 9% q-o-q. The business unit registered Profit for the Period of 9,258 MB, representing a drop of 18% y-o-y and 31% q-o-q due to the inventory loss. Revenue from Sales for the first half of 2017 is 103,856 MB, an increase of 7% y-o-y, attributed to good performance from Q1/2017 along with profit for the period which also increased 12% y-o-y to 22,625 MB.
- SCG Cement - Building Materials recorded a Q2/2017 Revenue from Sales of 42,657 MB, a decrease of 1% y-o-y and 5% q-o-q. The business unit registered Profit for the period of 1,768 MB, dropped 29% y-o-y and 28% q-o-q. Revenue from Sales for the first half of 2017 is 87,481 MB, decreased by 2% y-o-y due to strong competition and softness in the domestic market in Cement–Building Materials business. Profit for the period dropped 27% y-o-y to 4,236 MB
- SCG Packaging recorded Q2/2017 Revenue from Sales of 19,434 MB, which grew 3% y-o-y. The business unit registered Profit for the period of 1,019 MB, remaining flat y-o-y. Revenue from Sales for the first half of 2017 is 39,275 MB, increase of 4% y-o-y, mainly due higher production capacity in the Packaging chain. Profit for the period increased 20% y-o-y to 2,715 MB, in addition to benefitting from land and asset sale in Q1/2017.
Mr. Roongrote mentions that “SCG continues to expand business in ASEAN. Recently, SCG has approved investments in the first petrochemicals complex in Vietnam, Long Son Petrochemicals Company Limited (LSP), at 71% stakes and investments of 188,000 million Baht (5,400 million USD) with Vietnam Oil and Gas Group (PetroVietnam). The project consists of state of the art technology and possess the business competitiveness due to its full upstream to downstream integration. The production accommodates a flexible feedstock with Olefin production capacity of 1.6 million tons per year. The construction of project is scheduled to be a four and half years and shall begin its commercial operation in 2022. This will lessen the need to import and support Vietnam’s continuous growing demand.”
For the first half of 2017, SCG’s Revenue from Sales of High Value Added (HVA) products and services is at 86,291 MB, increasing 5% from the previous year, and accounting for 38% of the total Revenue from Sales. SCG plans to invest in innovation development at around 5,000 million Baht. Recently, SCG has unveiled its “Open Innovation Center” that will enhance science and technology through the collaborations with research institutions, government and private sectors from around the world. This is an attempt to combine ideas and introduce innovative products and services to the market as well as to unlock the ability to tackle consumer needs with speed and precision. In addition, AddVentures, a Corporate Venture Capital or CVC highlights SCG’s investments in startups, digital technology and innovation to support digital transformation. The AddVentures’s investments will be both; direct investments and venture capital. To further enhance SCG’s ability to commercialize innovative product and service, an internal startup program has been established for SCG employees to learn from startup business models.”
In addition, The Board of Directors of SCG has approved a H1/17 interim dividend payment of 8.5 Baht per share (10,200 MB), which is payable on August 24, 2017, XD-date on August 7, 2017, record date on August 9, 2017 and book closing date on August 10, 2017.
For more information about SCG, please visit www.scg.com