Siam Cement PCL reported a profit of THB9384m (US$301.6m) in the 2Q20, or a 35 per cent rise in earnings QoQ and 33 per cent YoY, bolstered by its chemical business performance. Company EBITDA from operations increased by 17 per cent QoQ and 23 per cent YoY to THB17,774m, while revenue from sales fell by nine per cent QoQ (-12 per cent YoY) to THB96,010m with decreases in all core businesses.
Thailand's domestic cement market saw grey cement demand increase by four per cent YoY in the 2Q20. The cancellation of the Songkran holiday to prevent the spread of COVID-19 added more working days to the quarter. Cement demand from the government sector (approximately 40 per cent of the total demand volume) rose by seven per cent YoY, while the remaining demand from non-government sector increased by two per cent.
SCG 2Q20
2Q20 revenue from cement sales for the company registered THB42,506m, down seven per cent YoY and down eight per cent QoQ, due to weak demand from COVID-19 lockdown measures. EBITDA for the SCG Cement-Building Materials Business rose by 13 per cent to THB6001m, helped by efficiency improvements and lower energy prices. Profit for the 2Q20 reached THB1944m, up 211 per cent YoY but down 30 per cent QoQ.
SCG 1H20
Revenue from 1H20 sales in the SCG Cement-Building Materials Business registered THB88,751m, down six per cent YoY as sales were affected by lockdown measures. EBITDA in the 1H20 for the cement business totalled THB12,737m, up five per cent YoY. Similarly, profits in the 1H20 reached THB4722m, up 36 per cent YoY.
However, without the non-recurring items of assets impairment in 2Q20, EBITDA in the 1H20 would register at THB13,436m, representing an 11 per cent increase YoY, and without including severance pay adjustment in the 2Q19 and assets impairment in the 2Q20, profit for the period would register THB5421m, up 22 per cent YoY.
Overseas operations 1H20
Thailand's Siam Cement Group (SCG) has seen its revenue from sales in Vietnam drop five per cent YoY to VND13.1trn (US$564.6m) in the 1H20, according to Vietnam News. The figure accounted for 8.8 per cent of SCG’s total revenue during the six-month period.
In July it was reported that SCG's Mawlamyine Cement Ltd in Myanmar had to stop operations due to a lack of suitable limestone. This led to 1000 workers being laid off. The company expects the brand to be sold out in local shops by the end of August.
SCG owns 70 per cent of Mawlamyine Cement with Pacific Cement Industries owning the remaining 30 per cent share. It is a relatively-new factory that only opened in April 2017 with a cement capacity of 5000tpd.