SCC is confident that it will pass “Crisis on top of a crisis”, let’s go ahead and make this year’s income grow by 10%, slow down the pressure

Roongrote Rangsiyopash, President Siam Cement Public Company Limited (SCC) or SCG is confident that its performance has passed its lowest point in the year 2022, where net profit has decreased by 55% to only 21,382 million baht, which is considered a decrease. The lowest in the last 14 -15 years since the hamburger crisis. Because this time is a double crisis, a crisis facing the Chinese economy is slowing The biggest petrochemical cycle decline in 20 years and the Russian-Ukrainian conflict have pushed energy costs up.

But in this year, Thailand’s economy tends to improve better. Especially from the tourism sector and the use has returned to busy. while the ASEAN market recovered from the opening of China Coal prices fell in the world market after the winter. and inflation began to show signs of slowing down The company is confident that it has passed this crisis. and meets new needs very well

“This year’s plan for SCG Group targets revenue growth of 10% from last year’s revenue of 569,609 million baht, supported by the recovery of tourism. and China opening up the country has a positive impact on consumption and the domestic economy is growing Meanwhile, SCG Chemicals (SCGC) will begin to recognize revenue from the integrated petrochemical project (LSP) in Vietnam, which will begin production in the middle of this year. It is expected to earn about 10% of the total sales,” said Mr Roongrote.

With regard to the energy, coal and electricity cost crisis, which has soared, SCG has proactively penetrated the clean energy business. With a capacity of 234 megawatts in 2023, an increase of 78% from the previous year with a Smart Grid for industrial estates. The latest network of industrial plants, hotels, hospitals laid for Saha-Union Group Bang Pakong has gone. Connecting clean energy between 10 companies, reducing energy costs by 30% and reducing greenhouse gas emissions by 3,670 tonnes of carbon dioxide per year. This business builds on SCG’s expertise in clean energy. to reduce the impact of rising energy costs according to the increase in energy prices in the global market

Although SCG has increased the proportion of using alternative fuels in 2022 to 34% from 26% in the previous year and used 194 megawatts of solar energy, up from 130 megawatts, while reducing greenhouse gas emissions by 3 million tonnes of carbon dioxide to exceed the target set and develop technologies to capture and use carbon.

Rungroj said of the uncertain situation that still exists this year. The company will focus on 3 main areas: 1. Building a stable and strong financial position. At the end of the year, the company had a remaining cash flow of more than 95,000 million baht 2. Reduce costs by using renewable energy and digital technology in the production process and 3. Develop new products and business. to keep up with customer needs

Regarding the investment budget this year, the company has set about 40,000-50,000 million baht, divided into approximately 50% of the investment in the LSP project and the remaining 50% for necessary projects others.

*No decision on sending SCGC to the stock market this year Let’s see the situation first.

Rungroj that Mr. The company is still considering the appropriate timing for the listing of SCG Chemicals Plc (SCGC) on the SET. Let’s wait and see the global economic situation first. Because at the moment, despite seeing that the Thai economy is recovering well But the foreign economy is likely to go into recession. causing consumption not to fully recover However, looking at different situations it shouldn’t be worse than the 4/65 quarter

The company has a period of approximately one year for SCGC to be listed on the stock exchange. Upon receipt of approval of the application for permission to sell securities (filing) by the Office of the Securities and Exchange Commission (SEC) on October 5, 2022, if a filing is required, a new SCGC is ready with information and documents that can be submit it immediately.

“Let’s look at the global economic situation first. if the situation favors We are ready to list SCGC on the stock exchange,” said Mr Rungroj.