SCG reports 4Q20 profits of THB8048m

SCG reported 4Q20 profit of THB8048m (US$261.8m), a decrease of 17 per cent QoQ. EBITDA fell by four per cent QoQ to THB18,300m, largely from reduced cement building materials performance resulting from a continued economic slowdown due to COVID-19, heavy rainfall and floods in the region, and recognition of CBM’s asset impairments in 4Q20 from Myanmar and Indonesia cement operations.

Sales revenue decreased by four per cent QoQ to THB97,250m from seasonally weak cement demand, effect from COVID-19.

YoY, EBITDA dropped by 12 per cent YoY from lower seasonal dividend from associates in the 4Q20. Similarly, revenue from sales dropped by eight per cent YoY.

For FY20 sales revenue decreased  by nine per cent YoY to THB399,939m, largely from lower chemical prices and sales volume. However, EBITDA slightly decreased by only one per cent YoY to THB74,600m, thanks partly to the continuous cost and efficiency improvements seen in the cement business. Profit for the year registered at THB34,144m, an increase of seven per cent YoY from better performance in all businesses. 

Cement demand falls
In the 4Q20 Thailand’s total domestic grey cement demand decreased by five per cent YoY. Cement demand from the government sector (approximately 40 per cent of total demand volume) remained stable YoY, but demand from non-government sectors (approximately 60 per cent of total demand volume) fell by seven per cent YoY. The average grey cement price in the 4Q20 dropped to the range of THB1700-1750/t. 

Regional results
For the 4Q20, revenue from sales of the cement and building materials business was THB40,284m, a decrease of 11 per cent YoY and by six per cent QoQ as a result of weakening demand from the resurgence of COVID-19 outbreak as well as logistic issues due to heavy floods in Thailand. Additionally, floods in Vietnam and Cambodia from severe rainfall contributed to the weak sales.

EBITDA was reported to be THB3,673m, down 20 per cent YoY and  29 per cent QoQ due to decreased sales volume from economic slowdown. Net loss for the period fell THB194m, due mainly to the recognition of THB1316m asset impairments at the company's Myanmar and Indonesia cement operations during the quarter. Without the impairments, profit for the period would have been THB1122m.