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SCG latest operating results highlight agility and strategies to overcome COVID-19

August 06/2020

MOSCOW (MRC) -- SCG, a leading conglomerate in the ASEAN region, has amped up business strategies to triumph in the dragged out COVID-19 battle with agility and solid business continuity management, said Vir.

The group will continue to focus on maintaining long-term business stability with developments of total solutions and innovations to fulfill needs in the new normal, leveraging digital channels to push online purchases to shine in the ASEAN market.

SCGs profit in the second quarter of 2020 reached VND6.860 trillion (USD297.83 million), up 33 per cent on-year, due to the improved performance at all three of SCGs key business units cement-building materials, chemicals, and packaging driven by cost optimisation efforts and business continuity. Additionally, it reported an increase of 35 per cent on-quarter mainly attributed to improved chemicals business performance.

The groups sales revenue for the first half of 2020, however, dropped 9 per cent on-year to VND148.6 trillion (USD6.46 billion), due to lower chemicals prices. Profit for the period declined by 13 per cent on-year to VND12.052 trillion (USD524 Million), which is mainly attributed to decreased chemicals margins during the first quarter.

SCGs revenue from sales of high-value-added products and services (HVA) for the first half of 2020 reached VND67.062 trillion (USD2.9 billion) or 45 per cent of its total sales revenue. As of June 30, 2020, the total assets of SCG amounted to VND530.5 trillion (USD23 billion), while the total assets of SCG in the ASEAN (ex-Thailand) amounted to VND192 trillion (USD8.35 billion), which is 36 per cent of SCGs total consolidated assets.

Based on its recently-released second-quarter report, SCG in Vietnam owned VND88.8 trillion (USD3.86 billion) worth of total asset, an increase of 59 per cent on-year mainly from its chemicals business. During the period, the group reported sales revenue of VND6.976 trillion (USD303.3 million) which includes sales from both operation in the country and imports from the Thai operations. This represents a decrease of 6 per cent on-year. For the first half of this year, SCGs Vietnamese market reported revenue from sales of VND13.086 trillion (USD568.96 million), down 5 per cent on-year mainly from all businesses.

Regarding to the current COVID-19 pandemic in Vietnam, SCG have been continuing on implementing full-blown business continuity management. Regarding to the current COVID-19 pandemic in Vietnam, SCG have been continuing on implementing full-blown business continuity management. To keep employees and their family safe from COVID-19, SCG has applied a new way of work called "Hybrid Workplace" that allows much greater flexibility for employees.

They can work on site, work from home, or work from anywhere the company considers safe and apply physical distancing guidelines. Furthermore, SCG and its subsidiaries realise that the health and safety of stakeholders are the most important aspect of having a good quality of life in times of COVID-19 pandemic, and so they continuously support communities across the nation by donating 400 tonnes of cement to build 45 playgrounds in the central province of Quang Binh and provided mobile clinics for health checks and safe transportation education programmes for communities in Long Son commune and Ba Ria-Vung Tau province in southern Vietnam.

Notably, SCGs subsidiary Binh Minh Plastic was ranked amongst the Top 50 Best-Performing Companies on the Vietnamese stock exchange in 2019 by by Nhip Cau Dau Tu Magazine for in financial results for three fiscal years in a row, based on three indicators: revenue, return on equity (ROE), and earnings per share (EPS).

As MRC informed earlier, SCG has no plans to delay development projects, including the Long Son Petrochemicals complex in Vietnam, with construction 45% complete. The project is worth USD5.4 billion. The start-up of Vietnam's first fully integrated petchems facility is scheduled for 2023.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
Author:Anna Larionova
Tags:petroleum products, PP, PE, petrochemistry, SCG Chemicals.
Category:General News
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