The Siam Cement Public Company (SCC) Q2 2024 earnings summary

Executive summary

• Global volatility, geopolitical tensions, and weak Thai economic recovery impacted trade flows and prolonged the chemical downcycle, with H1 2024 seeing improved earnings in construction materials and packaging but significant losses in chemicals due to Long Son Petrochemicals (LSP) pre-startup costs and incidents like the Map Ta Phut Tank Terminal accident.

• Revenue from sales for H1 2024 was Baht 252,461 million, nearly flat year-over-year, while net profit attributable to owners dropped sharply to Baht 6,133 million from Baht 24,608 million in H1 2023.

• EBITDA rose 29% quarter-on-quarter in Q2 2024 but dropped 10% year-on-year for H1 2024, mainly due to lower spreads and reduced dividends from associates.

• Operational improvements, cost control, and green product expansion supported performance, especially in Vietnam and Indonesia.

• The interim financial statements received an unqualified review from the independent auditor.

Financial highlights

• H1 2024 revenue: Baht 252,461 million (up 3% YoY in some reports, down 0.4% YoY in others); Q2 revenue increased 3% quarter-on-quarter and year-on-year.

• H1 2024 net profit: Baht 6,133 million, down 75% year-on-year, with significant non-recurring losses from LSP and Map Ta Phut incidents.

• EBITDA for H1 2024: Baht 28,889 million (down from Baht 32,123 million YoY); EBITDA margin for H1 2024: 9%.

• SCG Packaging H1 sales revenue was Baht 68 billion, EBITDA Baht 9.8 billion, and net profit Baht 3.2 billion, all up year-on-year.

• Cash and cash equivalents increased to Baht 57,215 million as of 30 June 2024.

Outlook and guidance

• H2 2024 faces challenges from lower global demand, geopolitical risks, and high freight costs, but cement demand in Thailand is expected to grow and chemicals demand to improve gradually.

• Focus on cost efficiency, energy transition, expanding green products, and enhancing production capabilities in Southeast Asia.

• Interim dividend of Baht 2.50 per share (approx. Baht 3,000 million) approved for payment in August 2024.

• CapEx for 2024 expected at Baht 35–40 billion, excluding Fajar acquisition.