Logo of Phnom Penh Post newspaper Phnom Penh Post - Thailand’s SCG: Revenue up 7%, profit dips 55%

Thailand’s SCG: Revenue up 7%, profit dips 55%

Content image - Phnom Penh Post
A truck transports tons of cement bags for a building project. PHOTO SUPPLIED

Thailand’s SCG: Revenue up 7%, profit dips 55%

Thai conglomerate Siam Cement Group Pcl (SCG) reported a modest revenue increase for 2022 that was overshadowed by a dramatic slump in profit, with Cambodia remaining a key ASEAN market, amid widespread construction slowdown and financial instability risks among populations.

In a financial report released on February 6, SCG put revenue and profit for its financial year ended December 31 at 66.423 trillion riel and 2.486 trillion riel, respectively, converted to $16.244 billion and $610 million, up seven per cent and down 55 per cent over 2021.

Without specifying which particular measure (gross, operating, net) it was referring to, the company blamed the drop in “profit” on “economic slowdown, petrochemical trough and rising energy costs”.

“Meanwhile, in the fourth quarter, profit for the period stood at 18 billion riel – $4 million,” it noted.

Speaking in the report, SCG president and CEO Roongrote Rangsiyopash pinned the company’s woes on “multiple crises stemming from the Russia-Ukraine conflict, rapidly soaring coal and electricity prices, inflation, Thai baht fluctuation, China’s economic slowdown, and the largest petrochemical trough in 20 years.

“On the other hand, [SCG] has closely monitored the situation and quickly adjusted to lessen its impact on the company as a whole by putting an emphasis on maintaining financial stability, cutting costs by utilising renewable energy sources and digital technology in the production, and prudently strategising its investment decisions. The result was a healthy cash balance of 11.047 trillion riel – $2.709 billion.

“In the meantime, recent challenges have also generated new business opportunities, particularly the demand for green products, which are a major global trend and are constantly growing, such as renewable energy, green polymer, energy-saving solutions ,and sustainable packaging,” he said.

The report added that “for SCG’s operation[s] in ASEAN, [excluding Thailand], revenue from sales in the fourth quarter recorded a 15 per cent decrease year-on-year, amounting to 2.688 trillion riel, or $651 million, and 19 per cent of SCG’s total revenue from sales. This includes sales from both local operations in each ASEAN market and imports from the Thai operations”.

Roongrote mentioned that SCG recently celebrated three decades of “fruitful” and “sustainable” business efforts in Cambodia and vowed that the company would continue to do its part to promote economic development and the wellbeing of Cambodians.

“SCG continues to prioritise maintaining financial stability and liquidity with prudent strategic investments, tightening the purse strings, and reducing energy costs.

“Simultaneously, it will accelerate business progress to satisfy new needs, invest in innovations, seize economic recovery opportunities, develop solutions to support global megatrends, and strengthen the business. The regional market has begun to recover and is projected to expand further.

“Furthermore, SCG is prepared to assist in the strengthening of society. It created jobs for 9,000 individuals impacted by the economic crisis in 2022 to provide them with income and lessen social inequality,” he said.

At present, Cambodia’s five cement factories – one in Battambang province and four in Kampot – have a combined annual production capacity of about nine million tonnes, representing roughly three-quarters of the estimated total domestic demand of 12 million tonnes.

These are Battambang Conch Cement Co Ltd (Conch), Kampot Cement Co Ltd (SCG-K CEM), Chip Mong Insee Cement Corp (CMIC), Cambodia Cement Chakrey Ting Factory Co Ltd (Huaxin) and Thai Boon Roong Cement Co Ltd.

Cambodian “iron and steel” imports last year clocked in at $359.819 million, rising by 23.08 per cent year-on-year from $292.339 million, according to the General Department of Customs and Excise (GDCE).

This category of items, corresponding to Chapter 72 of the harmonised tariff schedule, accounted for 1.202 per cent of the $29.942 billion value of the Kingdom’s total imports over the year, GDCE statistics show.

The GDCE did not reveal any tonnage figures. To clarify, these imports do not include “articles of iron or steel”, which instead fall under Chapter 73 of the tariff schedule.

MOST VIEWED

  • Wing Bank opens new branch in front of Orkide The Royal along Street 2004

    Wing Bank celebrates first anniversary as commercial bank with launch of brand-new branch. One year since officially launching with a commercial banking licence, Wing Bank on March 14 launched a new branch in front of Orkide The Royal along Street 2004. The launch was presided over by

  • Girl from Stung Meanchey dump now college grad living in Australia

    After finishing her foundational studies at Trinity College and earning a Bachelor’s degree from the University of Melbourne in 2022, Ron Sophy, a girl who once lived at the Stung Meanchey garbage dump and scavenged for things to sell, is now working at a private

  • Ministry using ChatGPT AI to ‘ease workload’; Khmer version planned

    The Digital Government Committee is planning to make a Khmer language version of popular artificial intelligence (AI) technology ChatGPT available to the public in the near future, following extensive testing. On March 9, the Ministry of Post and Telecommunications revealed that it has been using the

  • Wat Phnom hornbills attract tourists, locals

    Thanks to the arrival of a friendly flock of great hornbills, Hour Rithy, a former aviculturist – or raiser of birds – in Kratie province turned Phnom Penh tuk tuk driver, has seen a partial return to his former profession. He has become something of a guide

  • PM urges end to ‘baseless’ international Ream base accusations

    Prime Minister Hun Sen urges an end to “baseless” foreign accusations surrounding the development of the Kingdom’s Ream Naval Base, as the US has consistently suggested that the base is being expanded to accommodate a Chinese military presence. Hun Sen renewed his calls while

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to