Thai cement company SCG has posted a 24 percent year-on-year profit increase for the 2016 financial year driven by the performance of the company’s chemical business.
SCG, which also produces packaging and industrial chemicals, posted a $1.6 billion profit for 2016 but saw a drop in revenue for the final quarter of the year, according to an announcement by the company.
SCG’s $400 million Mawlamyine cement plant is scheduled to come online early this year and will produce 1.8 million tons of cement per year, said Roongrote Rangsiyopash, President and CEO of SCG.
“In ASEAN, we continue to implement strategies coupled with solidifying the SCG brand,” he said.
“SCG believes that this market holds high prospects with dynamic growth from the government’s investment policies as well as domestic consumption and trade among ASEAN countries.”
Revenues from sales in SCG’s ASEAN operations fell by 2 percent for the year up until December 31st 2016, with the company citing increased competition and a decrease in product prices.
Overall, the cement giant also saw a 6 percent dip in final quarter revenue for 2016, compared with the same period of the previous year, to $2.78 billion which it puts down to a fall in the price of petrochemicals used in oil and gas processing.
Despite this, SCG increased its Myanmar assets to $355 million, while SCG-Shwe Me Logistics, the company’s Myanmar based transport and warehouse storage division, posted revenues of $7 million for the fourth quarter of 2016, a 96 percent increase on the same period last year.
Source: Myanmar Business Today
