Vietnam operations result in $1.26 bln revenue for Thai giant SCG in 2023, topping overseas earners

Thailand’s Siam Cement Group (SCG) earned revenues of THB121.85 billion ($3.45 billion) from overseas business in 2023, down 23% year-on-year, including THB44.55 billion ($1.26 billion) from Vietnam, down 25%.

According to its latest financial report, Thailand remained SCG’s biggest source of revenue, accounting for 57% of the total.

Among overseas markets, Vietnam was the largest, followed by Indonesia with THB36.96 billion ($1.05 billion) and Cambodia with THB11.07 billion ($313.3 million).

Globally, SCG recorded earnings before interest, taxes, depreciation and amortization (EBITDA) of THB54.14 billion ($1.53 billion) on revenues of THB499.65 billion ($14.14 billion), down 13% and 12% year-on-year, respectively.

Reviewing its performance in the fourth quarter (Q4) of 2023, SCG highlighted that the Long Son Petrochemicals Complex (LSP) in Vietnam's southern province of Ba Ria-Vung Tau began to test-run its cracker since late December.

SCG plans to conduct performance test runs and ramp-up process in Q1/2024.

The group said LSP has secured long-term feedstock from the Middle East. The project is subject to favorable tax benefits, including exemption from import tax for imported goods. Another benefit is corporate income tax at 10% for 30 years from the time of generating revenue, tax exemption for four years and a reduction of 50% of the tax payable for the following nine years.

The $5.4 billion LSP is among the biggest Thai investments in Vietnam, accounting for more than one-third of the kingdom’s total foreign direct investment (FDI) in the country, which stands at over $14 billion.

LSP has outstanding loans of approximately $1.3 billion with three leading financial institutions and outstanding shareholder loans of the same amount, SCG said.