BUOYED by its chemical trade, SCG posted a significant growth in net income for the first half of 2015 to P33.712 billion ($757 million), or 48 percent higher than recorded during the same period last year, the company’s top executive said.
SCG President and CEO Kan Trakulhoon said this was achieved amid a slowdown in domestic cement and packaging businesses.
Net income for the second quarter of this year, he noted, stood at P18.627 billion ($417 million), also up 63 percent from April to June 2014.
He said the bottom figure rose by 25 percent quarter-on-quarter (QOQ) on the back of larger global-market margins in the chemical business due to the decline in prices of raw materials and crude oil.
Sales revenue-wise, SCG registered a decrease of 10 percent to P301.438 million ($6.769 million) for the first six months of 2015 from a year ago.
It was also down by 9 percent for the second quarter of this year to P152.776 million ($3.421 million) compared to the same three-month period in 2014.
Nevertheless, there was an improvement in revenue from sales by 4 percent QOQ this year.
As regards SCG’s operation in Asean (ex-Thailand), sales revenue in the second quarter of 2015 reached P14.746 billion ($330 million), representing 10 percent of SCG’s overall revenue from sales.
Total assets of SCG as of end-June this year hit P669.479 million($14.830 million), as those of SCG in Asean (ex-Thailand) amounted to P128.265 million ($2.841 million), or 19 percent of SCG’s overall combined assets.
In the Philippines the company’s assets aggregated to P9.6 billion ($213 million) in the second quarter of 2015.
Sales revenue grew by 4 percent to P1.725 billion ($39 million) at the latest, from April to June 2014 because of growing paper market, and P3.654 billion ($82 million) or 8 percent higher in the first half of this year than booked last year.
For other markets in Southeast Asia, Kan said that demand in cement also continued to rise in the second quarter, especially in Myanmar and Cambodia, where demand was stronger by 19 percent and 12 percent year-on-year, respectively, as SCG is a preferred cement brand and highly regarded for its quality.
Looking forward, the company is pushing ahead with its Asean expansion in accordance to its plan.
“SCG’s investments in Asean will continue to push ahead as planned. Currently the cement plant in Cambodia has begun its second operation line, while operation at the plant in Indonesia will also commence at the end of the year,” Kan said.
“Construction of the production base in Myanmar will be completed in 2016, while in Lao People’s Democratic Republic, the plant will be finished in 2017, ready for the expected increase in demand by Asean consumers,” he said.