Siam Gas sees 20% growth in revenue
Siam Gas & Petrochemicals Public Co., Ltd. (SGP) expects Bt60 billion in revenue this year, up by 20 per cent this year on strong sales in foreign markets after business acquisition boost foreign sales by 50 per cent. SGP plan to use its gas supply in China to penetrate Hong Kong-Macau market, according to SGP's Director and Managing Director, Supachai Weeraborwornpong.
Foreign sales became strong after expansion of investment in LPG gas retail business in Southeast Asia (Vietnam, Malaysia, Singapore) and China. SGP expanded investment in North and South Vietnam late last year. The most recent business from Shell Oil should boost sales by another 50,000 tonnes per year.
Furthermore, SGP is expediting to conclude the transfer of project in Malaysia which it expect to finalise soon. This project would give SGP a major role as LPG gas distributor in East Malaysia which should raise sales by about 100,000 tonnes a year.
The business acquisition in Vietnam and Malaysia can help boost sales of LPG gas significantly in both countries. Wholesale and retail sales of LPG sales in foreign markets should expand by over 50 per cent. This would raise the sales ratio of local / foreign markets sales from 50/50 per cent to 40 / 60 per cent this year, Supachai added.
For the long-term, SGP has plans to expand business and reinforce its strengths by hoping to use its gas supply in China to (in Joohai and Shua Tao) and floating gas depot to help beef its edge in importing / exporting of LPG gas to various countries in this region, such as Hong Kong, Macau, Philippine and Malaysia, Vietnam and Cambodia.
This edge helped SGP secure and increase the number of clients under definite sales contracts. Moreover, such gas depot also supports the retail LPG business of SGP’s subsidiaries / affiliated companies in various countries as well as continuing growth.
SGP’s aggressive business strategy help strengthened its position and place it as a leading importer and major distributor of LPG gas in Southeast Asia, both wholesale and retail. SGP’s fully-integrated business comprise of a large LPG gas depot, LPG gas transport system (land / marine) and distribution network. SGP expects its LPG gas retail business and imports / exports activities of its foreign markets will boost foreign sales this year by over 50 per cent, Supachai said.
As for SGP’s overall strategy for the domestic LPG market, will strive to fulfill the demand for LPG gas in both the industrial and household sector which the SGP expect to continue to grow steadily.
SGP’s 9-months 2012 operations results shows net profit of Bt483 million, down from Bt581 million posted in the same period of 2011.
Total revenue was at Bt36.21 billion, up by Bt7.21 billion. As for the third quarter 2012 results, SGP showed a net profit of Bt190 million, up from Bt178 million posted in the same period of 2011; total revenue was Bt13.51 billion, an increase of Bt3.54 billion.