SCG announces operating results for Q1/2022

by PV11 May 2022 Last updated at 15:42 PM

Long Son Petrochemicals 2
Long Son Petrochemicals 2

VTV.vn - SCG reported its operating results for Q1/2022, demonstrating a solid performance with strategies to deal with soaring energy and raw materials costs as a result of the Russia-Ukraine conflict.

To act proactively and foster sustainable and long-term stability, SCG is emphasizing four strategies:
1) proactive business management with flexibility, 2) timely delivery of innovations to capitalize on opportunities during the country's reopening, 3) complete construction of LSP project in Vietnam to commence commercial operations in the first quarter of 2023, expand production capacity of High Quality Post-Consumer Recycled Resin of Sirplaste in Portugal, and 4) acceleration of ESG (Environmental, Social and Governance) to build business immunity for long-term growth.

Mr. Roongrote Rangsiyopash, President and CEO of SCG, disclosed, "The Company's unreviewed Operating Results for Q1/2022 registered Revenue from Sales of 108.9 Trillion VND (US$ 4.6 Billion), an increase of 7% q-o-q, due to higher sales across all businesses. Meanwhile, Profit for the Period reached 6.3 Trillion VND (US$ 268 Million), an increase of 6% q-o-q, largely owing to the improved business performance of Cement-Building Materials Business and higher non-chemical equity income (agricultural machinery business).

Mr. Roongrote Rangsiyopash, President and CEO of SCG, at the Operating Result of Q1.2022

Mr. Roongrote Rangsiyopash, President and CEO of SCG, at the Operating Result of Q1.2022

On a y-o-y basis, Revenue from Sales increased 25% from higher sales revenue across all businesses mainly from higher product prices in-line with the market. However, Profit for the period fell by 41%, mainly due to rising feedstock costs from Chemicals Business in Q1/2022, along with the fact that the Chemicals industry had better performance in Q1/2021 compared to normal business operations from winter freeze which caused supply shortage in the United States.

In Q1/2022, SCG's Revenue from Sales of High Value Added Products and Services (HVA) reached 36.7 Trillion VND (US$ 1.5 Billion), accounting for 34% of total Revenue from Sales. Moreover, New Products Development (NPD) and Service Solution amounted to 17% and 5% of total Revenue from Sales.

Besides, SCG's Revenue from outside of Thailand together with exports from Thailand was 44% of total Revenue from Sales or amounted to 44.4 Trillion VND (US$ 2 Billion) in Q1/2022, an increase of 30% y-o-y.

SCG's total assets as of March 31, 2022 amounted to 610.5 Trillion VND (US$ 26.7 Billion), of which 45% represented assets in ASEAN”

SCG in ASEAN (ex-Thailand)

For SCG’s operation in ASEAN (ex-Thailand), the Revenue from Sales in Q1/2022 recorded a 30% increase y-o-y, amounting to 29 Trillion VND (US$ 1.3 Billion), and 28% of SCG’s total Revenue from Sales. This includes sales from both local operations in each ASEAN market and imports from the Thai operations.

As of 31 March 2022, the total assets of SCG amounted to 610.5 Trillion VND (US$ 26.7 Billion, while the total assets of SCG in ASEAN (ex-Thailand) were US$ 356.8 Trillion (15.6 Trillion, 58% of SCG’s total consolidated assets.

Owing to commitment to create value to Vietnam economic, in February, SCG President & CEO attended a courtesy meeting with the Prime Minister of Vietnam to seek guidance on the expansion of Long Son Petrochemicals Phase 2 (LSP2) in Ba Ria-Vung Tau, south of Vietnam. The project incorporates green, advanced technologies, and sustainable development to meet rising demands aligning with the country and ASEAN economic growth.

SCG in Vietnam consistently pursues the sustainability framework of ESG (Environmental, Social and Governance) in driving sustainable business growth by contributing to the local communities where it operates. In Q1/2022 SCG was listed in the Top 50 Green Growth Foreign Invested Enterprises (FIEs) in Vietnam at the 21st Golden Dragon Award. Moreover, an outdoor gym at Binh Duong was completed to enhance well-being while SCG with its subsidiary, PRIME Group, provided hand-washing equipment to schools in Hai Duong and Vinh Phuc to help curb COVID-19. Also, PRIME carried out renovations and supports for homes in the community.

Mr. Roongrote said, "SCG has remained strong both in Thailand and overseas despite rising costs owing to the Russia-Ukraine situation. To respond proactively in the fast-paced manner and tap into global markets, SCG is accelerating four strategies: 1.) proactive business management, 2.) timely delivery of innovations, 3.) growth strategy-driven investments, and 4.) acceleration of ESG (Environmental, Social and Governance) to strengthen business immunity for long-term growth".

The global economic situation, on the other hand, continues to be volatile. Mr.Roongrote concluded, "Keeping a close eye on the situation, forecasting scenarios in a timely manner, and adapting rapidly can enable businesses to continue operating in the face of a crisis. SCG has prepared for a short-term crisis through proactive risk management and long-term opportunities through a business transformation in accordance with the ESG (Environmental, Social, and Governance) approach".


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