SCG today announced the operating performance for the second quarter of 2012, showing better revenue from volume growth and higher product prices in most business units, but decreased profitability, due to the chemicals inventory adjustment following the fluctuation in global oil price.
In the second quarter, SCG’s combined ASEAN operations (ex-Thailand) recorded a 50 per cent year on year sales growth. The company allocated budget of approximately $41 million for further investment in high value added products and services.
Kan Trakulhoon, president & CEO of SCG, disclosed the unreviewed consolidated financial statements of SCG and its subsidiaries for the second quarter, which showed revenue from sales of $3.145 billion, an increase of 7 per cent year on year, following growths in the construction related businesses. The profit for the period registered $134 million, a decrease of 43 per cent year on year, which was attributed to the inventory adjustment of approximately $63 million loss for the chemical business’ subsidiaries and associates.
For the first half of 2012, SCG recorded revenue from sales of $6.364 billion, an increase of 9 per cent year on year and profit of the period dropped 39 per cent year on year to $321 million.
The total assets of SCG as of June 30, 2012 amounted to $12 billion.
In the first half of this year, SCG reported revenue from sales in Vietnam at $161 nillion.
For its latest investment in Vietnam, SCG recently increased its stake in Binh Minh Plastics Joint Stock Company (BMP), a leading company in Vietnam which specializes in producing plastic pipes, fittings for pipes and high tech plastic products, from 16.73 per cent to 20.38 per cent.
At present, total assets of SCG in Vietnam amounted to $380 million, an increase of 8 per cent year on year.
“The chemical business encountered loss in the second quarter this year as a result of the global chemicals trough, coupled with the downward adjustment of product and raw materials prices in accordance with the global oil price. This results in the downward adjustment of the carrying value in the account,” Kan said.
“But in the third quarter of this year, the sign of business recovery is much clearer and the oil price has adjusted higher, causing the price of products and raw materials to adjust accordingly.”