SCG loses $133 mln from $5.4 bln Long Son Petrochemicals Complex in H1

Thailand’s Siam Cement Group (SCG), the investor of the $5.4 billion Long Son Petrochemicals Complex (LSP) in Vietnam’s southern province of Ba Ria-Vung Tau, lost THB4,814 million ($133.1 million) from the facility in the first half of this year.

In H1/2024, SCG recorded a profit of THB6,133 million ($169.5 million), down 75% year-on-year, according to a company report.

SCG Packaging (SCGP) was the best earner with THB3,178 million ($87.8 million) in the period, followed by SCG Cement and Green Solutions with THB1,965 million ($54.3 million), up 17% and 24% year-on-year, respectively.

Meanwhile, SCG Chemicals (SCGC), the parent company of LSP, recorded a loss of THB3,107 million ($85.9 million), despite sales going up 2% year-on-year to THB97,867 million ($2.7 billion) in the period.

Regarding the 75% decrease in profit, SCG clarified it included THB4,814 million ($133.1 million) related to LSP and THB402 million ($11.1 million) related to Map Ta Phut Tank Terminal Company Limited. In May, SCG reported a fire at a storage tank containing the by-product hydrocarbon compound C9+ at MTT, resulting in several injured staff.

Besides, in March, SCG said the LSP complex had experienced an unexpected technical setback during a test run of the whole complex.

Reviewing the operation at LSP, SCG said it is running maintenance work from April-July, towards a complete complex restart and test run from August-September, and commercial operation from October.

SCG added that LSP now has outstanding loans of $1.3 billion with three leading financial institutions, and outstanding shareholder loans of $1.3 billion, or $2.6 billion in total. Its depreciation and interest expense for 2024 is estimated at $180-220 million.

SCG started land preparation for the Long Son Petrochemicals Complex in 2018, and conducted a full complex test run in December 2023. At full capacity, its annual output will include 1.4 million tons of polyethylene and polypropylene. The complex’s feedstocks include propane and naphtha.

Reviewing the operation in Vietnam in H1/2024, SCG reported sales revenue of THB23,733 million ($656.9 million), up 11.6% year-on-year. The figure was SCG's second-highest one in the ASEAN region, only behind Thailand, its home market.