28 April 2010 10:53 [Source: ICIS news]
SINGAPORE (ICIS news)--Thai conglomerate Siam Cement Group (SCG) said on Wednesday its chemicals business has posted a 23% year-on-year jump in its first-quarter net profit to baht (Bt) 3.05bn ($94m), partly due to healthy margins as product prices surged.
Earnings were also boosted by higher equity income from its chemicals' associates, it said.
Net sales for the period were up 34% to Bt29bn mainly because of higher polymer prices, the company said in a filing with the Stock Exchange of Thailand
The average prices of high density polyethylene (HDPE) for the quarter had risen 41% year on year or by $385/tonne to $1,318/tonne, while those of polypropylene surged 51% or by $461/tonne to $1,359/tonne, supported by tight supply, it said.
Earnings before interest, tax, depreciation and amortisation (EBITDA) of the chemicals division fell 36% to Bt3.3bn due to lower sales volumes of polymers, SCG said.
Sales volumes of polyolefins fell by 15% year on year, as a result of power failures which affected production at its facilities, the company said.
On a group level, SCG's first-quarter net profit was up 32% at Bht6.86bn, with net sales rising 24% to Bt68.64bn.
($1 = Bt32.33)
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