Company president Kan Trakulhoon said its sales of cement this year were expected to rise by around 5-6 per cent to 18 million tonnes. Of that, about 11 million tonnes would be sold domestically, and the remaining 7 million tonnes exported overseas.

But because of the delay to the mega-projects (mainly train lines in Bangkok), there would be no extra demand for cement for these projects this year, Kan said.

Therefore, the company would try to export more cement next year. However, Siam Cement already planned to expand it cement production capacity to serve the upcoming projects.

Siam Cement also announced yesterday a slight drop in its net profit in the first quarter due mainly to higher fuel costs. The company posted Bt9.55 billion in net profit in the first three months of this year, or Bt7.95 per share, compared with Bt10 billion, or Bt8.33 per share, last year.

However, the company's first-quarter results were higher than analysts' expectations, according to Dow Jones Newswires.

Meanwhile, its operating expenses rose to Bt222.3 million from Bt154.1 million in the previous year, and the company paid Bt125.5 million in income tax in the first quarter, down from Bt324.9 million in the same period last year.

Siam Cement posted Bt64.14 billion in revenue in the first quarter, up 12 per cent on-year, because of a rise in petrochemical product prices.

Kan said the company's results in the second half should recover, driven mainly by its petrochemical businesses, as petrochemical product prices would rise with oil prices.

He said the company would still proceed with the planned mega-projects amid the rising oil prices and political turmoil. Projects planned include a Bt60-billion petrochemical plant and the Bt9-billion expansion of a paper production plant. 

Watcharapong Thongrung

The Nation