Siam Cement PCL (SCC) , Thailand’s top conglomerate, reported a larger-than-expected 13 percent fall in second-quarter earnings on Wednesday as high energy costs continued to bite into profits.
While higher global petrochemical prices offer some respite for SCC, a barometer of Thai corporate health with interests in cement, petrochemicals and paper, analysts said the outlook for the rest of 2006 remained bleak if energy prices remained high.
High oil prices and electricity costs were likely to depress SCC’s margins this year. SCC spent about 10 percent of its revenues on energy last year and is likely to pay a lot more this year.
SCC, which derives 45 percent of its revenues from chemicals, said April-June net profit fell to 7.63 billion baht ($200.7 million) from 8.72 billion baht a year earlier.