Projects' suspension will not affect Siam Cement profits - analyst

15 January 2010 05:26  [Source: ICIS news]

SINGAPORE (ICIS news)--Profit margins of Siam Cement Group (SCG), Thailand’s largest industrial conglomerate, may not be affected by the suspension of 18 of its projects at Mab Ta Phut, an analyst said on Friday.

The suspension of the projects by the Administrative Court in Mab Ta Phut could affect the group’s turnover, SCG president Kan Trakulhoon had said on Thursday. But SCG’s financial position was sound and it had extra available cash of baht (Bht) 20bn ($438m), Kan was quoted as saying in the Bangkok Post.

“There is no problem at all…even if their projects were suspended for a year they will still register a profit. The impact should be minimal,” said Suttichai Kumworachai, a Bangkok-based analyst at brokerage KGI Securities.

“Their financial position is very strong and they have full support from the banks and the government,” he added.

SCG had also filed a petition asking the court to allow five of its suspended projects valued at Bht 10bn to proceed.

A source close to the company said that it would take more than six months for the court to “get back” on SCG’s suspensions, adding that the five projects were downstream facilities.

At 11.38 hours Singapore time (0338 GMT), Siam Cement (SCC) shares were unchanged at Bht 231.

($1 = Bht32.87)

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By: Nurluqman Suratman

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