The Siam Cement Public Company (SCC) Q4 2024 earnings summary

Executive summary

• Achieved significant cost reductions and business restructuring, resulting in ongoing annual savings of THB 1.35 billion and a one-time charge of THB 1.6 billion.

• Reduced working capital by THB 16 billion from Q3 to Q4 and THB 6.2 billion year-over-year.

• Maintained stable EBITDA at THB 53,946 million, with strong cash flow supporting debt reduction and a high dividend payout ratio of 95% for FY2024.

• Strategic focus on deleveraging, green energy, and expansion in ASEAN markets.

Financial highlights

• Sale revenue increased 2% year-over-year, mainly due to higher chemical sales volume and LSP project contribution.

• EBITDA for 2024 was THB 53,946 million, nearly unchanged from 2023.

• Net debt reduced to THB 295.1 billion by year-end; net debt-to-equity at 0.7x.

• Dividend recommended at THB 5 per share, yielding approximately 3.3% and a payout ratio of 95%.

• CapEx for 2024 was THB 55,305 million, with a plan to reduce to THB 30–35 billion in 2025.

Outlook and guidance

• Expect continued volatility in global markets, with chemical margins unlikely to fall further due to industry capacity cuts and non-competitive player exits.

• Construction and cement demand projected to grow, driven by government projects and private investment in Thailand and ASEAN.

• Ongoing focus on cost reduction, green product expansion, deleveraging, and asset divestment.