Siam Chemical Group posts better than expected Q2 results

30-Jul-09

Thailand's Siam Cement Group (SCG) has posted better-than-expected Q2 results, with net profits of 6.83 billion baht. Q2 profits are up by 32% from the previous quarter mainly propped by improving petrochemical margins. However, profits are still 5% lower than recorded in the same period last year. Q2 sales totalled 56.88 billion baht, a 29% decrease from the same period last year, but a 3% increase quarter-on-quarter. Better performances in core businesses, especially in petrochemicals, were a key reason for the improved results. The company's policy of increasing exports to compensate for dwindling domestic sales along with cost-control efforts have yielded benefits in operating results. Better prices have yielded better spreads of petrochemical products as the market awaits supply from several delayed Middle Eastern projects to commence.