Mr Roongrote says SCG's operating results for the third quarter and the first nine months showed better profits from its chemicals business, thanks to the cyclical upturn of the petrochemical industry.
Siam Cement Group (SCG), the industrial conglomerate, posted a net profit of 14.1 billion baht in the third quarter of this year, a 57% rise compared with the same period last year, as strong performance in its petrochemicals business helped offset weaknesses in its cement sector, according to president and chief executive Roongrote Rangsiyopash.
But profit was down 12% from the previous quarter on a lack of dividend payouts from its investments and a slowdown in cement demand during the rainy season.
Its chemicals business, which accounts for around 84% of quarterly earnings, posted a 74% jump in profit due to lower feedstock costs and higher contributions from its associated companies.
Profit from the cement and building materials segment fell 19% in the third quarter as domestic cement demand dropped 5% due to lower offtake from non-governmental sectors.
But Mr Roongrote said total revenue in 2016 could be lower than the previous year's 439 billion baht due to the country's gloomy economic outlook.
He added that SCG would have to assess the economic situation and business sentiment again in the final quarter to see whether its revenue this year would surpass turnover for last year.
"We need to admit that the country's economic outlook this year is not as good as we expected earlier and that might make our revenue forecast miss the target. But we will do our best to make it better," said Mr Roongrote.
He said a decline in the company's cement business was a major factor bringing down total revenue for the whole year.
In the first nine month of this year, demand for cement dropped 1%, while demand in the last quarter is expected to drop even further.
Mr Roongrote said strong demand for cement in neighbouring countries such as Myanmar and Vietnam, however, has helped offset falling demand at home.
He said the board of directors is due to meet later this year to discuss the company's five-year investment plan and budget. They will further decide on whether to revise the five-year investment budget of 250 billion baht.
For next year, the company has set aside an investment budget of 50 billion baht.
With poor economic outlook that has delayed some investment plans this year and the subsequent slowdown in spending, some 25 billion baht from this year's investment budget will be added to next year's budget.
"That would allow the company to have more funds for mergers and acquisitions next year," said Chaovalit Ekabut, vice-president for finance and investment and chief financial officer.
He said the company's petrochemical business remained strong with an average margin spread staying at US$720 a tonne, close to the previous year.
Regarding SCG's plans to invest in a petrochemical complex worth $4.5 billion, Mr Chavalit said SCG is still searching for a partner and is negotiating the price of construction. SCG is aiming for a fixed price of $4.5 billion as planned earlier.
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