The Siam Cement Public Company (SCC) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was THB 128.2 billion, flat sequentially and up 0.4% YoY; nine-month revenue was THB 380.7 billion, nearly flat YoY, with net profit dropping sharply to THB 6.85 billion from THB 27.05 billion.

• Q3 EBITDA was THB 9.8–11.1 billion, down 11% YoY and 39% QoQ, mainly due to weak Chemicals, FX loss, and inventory stock loss; nine-month EBITDA was THB 36.6–38.8 billion, down 10% YoY.

• Q3 net profit was THB 321–721 million, down 81% QoQ and 70% YoY, impacted by FX effects, inventory adjustments, and lower equity income in Chemicals.

• Major non-operating items included significant FX losses and a fire incident, partially offset by insurance compensation.

• Management is prioritizing cost cuts, asset divestment, and a major LSP ethane project to restore competitiveness.

Financial highlights

• Q3 2024 revenue: THB 128.2 billion (flat QoQ, +0.4% YoY); nine-month revenue: THB 380.7 billion (+2% YoY).

• Q3 EBITDA: THB 9.8–11.1 billion (-11% YoY, -39% QoQ); nine-month EBITDA: THB 36.6–38.8 billion (-10% YoY).

• Q3 net profit: THB 321–721 million; nine-month net profit: THB 6.8–6.85 billion, down 46–75% YoY.

• Net debt to EBITDA rose to 6.3x at Q3 end; net debt to equity at 0.8x.

• CapEx and investment spending for nine months was THB 48–48.6 billion, including the Fajar acquisition.

Outlook and guidance

• Chemical market remains challenging in Q4 and into FY2025 due to persistent oversupply and sluggish demand, especially from China; recovery anticipated from 2026 with China's stimulus.

• Construction materials and cement expected to recover in Q4, driven by government and FDI projects.

• Management targets THB 10 billion working capital reduction and THB 5 billion cost cuts by early next year.

• Long-term focus on LSP ethane project in Vietnam with a USD 700 million budget to improve competitiveness.

• New debenture issuances planned to refinance maturing debt and support investments.