15:20 | 04/08/2022 Companies
(VEN) - SCG’s Q2/2022 operating results show continuous revenue growth, maintaining robust financial standing.
The company’s unreviewed operating results for Q2/2022 registered revenue from sales of VND101.7 trillion (US$4.4 billion), a flat q-o-q and an increase 14 percent y-o-y mainly due to higher sales across all businesses from higher product prices in-line with market prices. Profit for the period is VND6.6 trillion (US$289 million), a decrease of 42 percent y-o-y from rising feedstock costs in the chemicals business following global oil prices as well as lower equity information at the chemicals business. Profit for the period registered an increase of 12 percent q-o-q due to dividend income from investment businesses.
Long Son Petrochemicals Company Limited (LSP) in Vietnam
SCG’s revenue from sales for the first half of 2022 rose 19 percent y-o-y to VND207.3 trillion (US$9 billion).
SCG’s revenue from sales of high-value added products & services (HVA) for H1/2022 reached VND69.6 trillion (US$3.1 billion), or 34 percent of total revenue from sales. Development of new products and service solution such as SCG Hybrid Cement and Hygienic Tiles made up 17 percent and five percent of total revenue from sales, respectively.
SCG’s revenue from operations outside Thailand together with exports from Thailand for H1/2022 registered VND90.5 trillion (US$4 billion). This constituted 45 percent of total revenue from sales, an increase of one percent y-o-y.
For SCG’s operations in the Association of Southeast Asian Nations or ASEAN (ex-Thailand), the revenue from sales in Q2/2022 recorded a 78 percent increase y-o-y, amounting to VND28.5 trillion (US$1.2 billion), and 28 percent of SCG’s total revenue from sales. This includes sales from both local operations in each ASEAN market and imports from the Thai operations.
As of Jun 30, 2022, the total assets of SCG amounted to VND595.3 trillion (US$25.6 billion), while the total assets of SCG in ASEAN (ex-Thailand) were VND268.9 trillion (US$11.6 billion), 45 percent of SCG’s total consolidated assets.
In Q2/2022, SCG’s total asset in Vietnam was VND151 trillion (US$6.5 billion), an increase of 24 percent y-o-y, mainly in the chemicals business from Long Son Petrochemicals (LSP) and packaging business.
The company reported Q2/2022 revenue from sales at VND11.1 trillion (US$482 million), up 13 percent y-o-y, mainly from the new partnership of Duy Tan, a rigid plastic packaging products producer of SCGP (packaging business).
Roongrote Rangsiyopash, SCG President & CEO, said: “Despite volatile situations with crisis upon crisis such as inflation, rising interest rates, increased energy and raw material costs as well as climate change, SCG continues to adapt, resulting in strong overall business and financial performance. Innovative product and service developments are in full gear, especially eco-friendly items with SCG Green Choice labels and innovations to meet consumers’ demands for safety and convenience, catering to the tourism and service sector’s recovery as borders fully open. Moreover, strategic investments are being prioritized, resulting in the delay of new projects that are non-urgent while still going through with quick-return projects and ones that are aligned with the company’s long-term growth plans. This includes the LSP petrochemical complex project in Vietnam and SCGP’s partnership with Peute, the largest packaging material recycling business in the Netherlands.”