SCG has revealed that its 2022 performance saw an increase in sales but a decline in profit due to significantly rising energy costs, inflation, a slowdown in the Chinese economy, and a downturn in the petrochemical cycle. The company aims to accelerate the expansion of new businesses in 2023, focusing on green products to meet global mega-trends. Meanwhile, LSP in Vietnam is ready to commence production for the market, which is expected to contribute 10% to total sales.

Mr. Rungroj Rangsiyopas, President of SCG, stated that SCG's 2022 revenue reached 569.609 billion baht, a 7% increase driven by the packaging and cement and construction products businesses. However, profit amounted to 21.382 billion baht, a 55% decrease due to the economic slowdown, a downturn in petrochemicals, and high energy costs, along with a decline in profit sharing from joint ventures.

In Q4 2022, SCG reported sales revenue of 122.190 billion baht, a 14% decrease due to lower prices and sales volumes of chemical products in line with reduced market demand. The profit was 157 million baht, down 94% from the previous quarter. Excluding inventory revaluation, asset impairment, and other items, profit would be 1.070 billion baht, a 66% decrease from the previous quarter.

It must be acknowledged that the profit in 2022 is at its lowest point in 14-15 years. Despite efforts to control costs, the company faced impacts from overlapping crises, the Russia-Ukraine conflict, soaring energy prices for coal and electricity, inflation, volatile baht, a slowing Chinese economy, and the largest petrochemical downturn in 20 years.

SCG has adapted to mitigate the overall business impact, focusing on maintaining financial stability, reducing costs through the use of renewable energy and digital technology in production processes, and carefully considering investments according to strategy, resulting in cash reserves of 95 billion baht.

For 2023, the Thai economy is expected to improve as tourism and consumption rebound. The ASEAN market is also recovering with China's reopening, global coal prices have decreased after winter, and inflation shows signs of slowing. SCG is confident it can navigate this crisis and effectively respond to new demands.

This year, SCG plans to invest around 40-50 billion baht, with over half expected to be allocated to investments in Long Son Petrochemicals Company Limited (LSP), a comprehensive petrochemical project in Vietnam, which is over 98% complete and set to start production in the middle of this year, expected to contribute about 10% to business growth.

In 2023, SCG sees new business opportunities, particularly in the demand for green products, which is a key global trend and continues to expand. This includes clean energy, eco-friendly plastics, energy-saving solutions, and resource-efficient packaging. In 2022, sales of SCG Green Choice grew significantly by 34%, exceeding the target, accounting for 51% of total sales. All SCG business groups are ready to accelerate efforts to strengthen the business further.

Mr. Thammasak Setthakarn, Executive Vice President of SCG stated that due to the energy cost crisis, SCG is advancing into the clean energy business, with a production capacity of 234 megawatts in 2022, an increase of 78% from the previous year, utilizing Smart Grid technology for industrial estates, factory networks, hotels, and hospitals. In 2022, SCG increased the share of renewable fuel use to 34% from 26% the previous year and utilized 194 megawatts of solar energy, up from 130 megawatts the previous year, while also reducing greenhouse gas emissions by 3 million tons of CO2, exceeding the set target.

SCG's sales of high value-added products and services (HVA) in 2022 amounted to 195.520 billion baht, accounting for 34% of total sales. Additionally, the share of new product development (NPD) accounted for 17%, and service solutions accounted for 6% of total sales.

Revenue from international operations, including exports from Thailand in 2022, totaled 257.880 billion baht, accounting for 45% of total sales, similar to the same period last year.

As of December 31, 2022, SCG's total assets were valued at 906.490 billion baht, with 45% being assets in ASEAN (excluding Thailand).

The company's board of directors has resolved to propose to the shareholders' meeting to approve the payment of an annual dividend for 2022 at a rate of 8.0 baht per share, totaling approximately 9.6 billion baht, representing 45% of the profit for the year according to the consolidated financial statements. The company has already paid an interim dividend for the first half of the year at a rate of 6.0 baht per share on August 26, 2022, and will pay the final dividend at a rate of 2.0 baht per share.