Thailand's SCG Petrochemicals witness Q4 loss on sliding sales

29-Jan-09

Thailand's SCG Petrochemicals Co. Ltd., Siam Cement's petrochemical subsidiary posted a net loss of 4.36 bln baht in Q4 - 2008 against a net income of 7.8 bln baht in the previous year mainly due to drastic decline in sales and nose-diving commodity prices. The prices of ethylene and propylene - used as feedstock for plastics production - declined by more than 50% in Q4 compared to the Q3 - 2008. The gloomy outlook is expected to continue into 2009; however, inventory writedown are not projected to repeat as the prices of petrochemical prices reach near stabilization. The parent company, Siam Cement Pcl, one of the largest Thai public-listed companies, posted a loss 3.48 bln baht in Q4 - 2008 relative to the net profit of 5.77 bln baht a year earlier, its first three-month loss in eight years.