SCG Controls Costs to Weather Crisis, Shows Strong 17% Growth in Adjusted Cash EBITDA
Siam Cement reported 6.223 billion baht in first-quarter profit with adjusted cash EBITDA up 17%, achieving over 4.3 billion baht in cost savings through strict controls amid global economic uncertainty and energy price volatility.
Thammasak Setrathum, President and Chief Executive Officer of Siam Cement Public Company Limited (SCG), revealed that the company achieved 6.223 billion baht in profit for the first quarter of 2025, with sales revenue of 123.327 billion baht. Adjusted Cash EBITDA—excluding inventory adjustments, impairments, and non-recurring items—reached 14.929 billion baht, a 17% increase.
Amid Middle East tensions driving volatility in energy and raw material prices, which impact the global economy including Thailand and multiple industries, SCG has implemented proactive strategies to absorb and manage the situation. In the short term, the company operates a Daily War Room command center to monitor and manage raw material costs and energy expenses, address oil supply shortages through improved energy efficiency and alternative energy sources, reduce transportation costs, and maintain strict fiscal discipline through restructuring and discontinuing unprofitable operations.
"These measures have achieved cost savings exceeding 4.3 billion baht, while working capital increased by 2.438 billion baht. Capital expenditure was controlled at 5.482 billion baht, reducing net debt by 2.813 billion baht. The net debt-to-EBITDA ratio improved to 5.0 times from 5.5 times. Financial position remains stable with 67.137 billion baht in cash reserves," the company stated.
For the 2025-2026 two-year plan, SCG focuses on building competitive strength through diverse production bases across ASEAN, improving manufacturing efficiency and product quality—projected to reduce costs region-wide by approximately 3.3 billion baht annually. The LSPE project at Long Son Petrochemicals in Vietnam, launching late 2025, will enhance feedstock flexibility and is expected to generate 6 billion baht in annual cost savings.
The company is pushing green products, quality goods at competitive prices, and high-value-added products while pursuing a strategic joint venture in olefins and polyolefins between GC and SCGC, expected to conclude by third quarter 2025. SCG is also advancing its integrated clean energy business to reduce costs and fossil fuel volatility. While closely monitoring global developments, the company remains confident in its strong financial position, adequate cash reserves, and capacity for sustained long-term growth.
