Upbeat outlook for SCC third-quarter earnings

Upbeat outlook for SCC third-quarter earnings
Published: 11 October 2013


Thai conglomerate Siam Cement Co (SCC) is expected to post robust YoY earnings growth in 3Q13 thanks to improved petrochem spread and healthy cement demand growth with higher prices, according to a recent report by TISCO Securities.

The research house expects SCC to post a 3Q13 net profit of THB9.1bn, up 41.9 per cent YoY but down 8.3 per cent QoQ. The expected YoY growth is due to higher petrochem spread, continued strong cement demand with higher prices, and extra gain from investment value adjustment, it notes.

Looking further ahead, TISCO expects another QoQ profit slip in 4Q13 due mainly to low seasonal demand for all products and a planned 45-day shutdown at its second naphtha cracker. However, it believes that SCC's overall earnings still look positive, given the projection that "petrochem spread will continue to widen in 2014-15F as demand outpaces new supply, and that demand for cement and building products will remain robust on the back of the government's planned public infrastructure investment rollout."