High energy costs are hurting Siam Cement, its chief financial officer said on Monday. High oil prices, coupled with a 10 per cent increase in electricity costs, were likely to depress Siam Cement’s margins this year, Roongrote Rangsiyopash said in an interview with Reuters.
"This year looks like we will be quite affected a little bit mainly because of energy," said Roongrote, who joined Siam Cement almost 20 years ago as an engineer.
"So margins would probably be lower this year although we try to make sure to make a proper investment to increase energy efficiency."
Roongrote said he expected EBITDA margins to drop below last year’s 21.5 per cent, echoing Siam Cement’s prediction in April that net profit would be flat this year. Analysts expect a one per cent drop.
The challenge was to spur growth in a company that reinvented itself after becoming a casualty of the Asia financial crisis of 1997-1998, said Roongrote, who like many Siam Cement executives is a graduate of Bangkok’s Chulalongkorn University.