Mitihoon – BANGKOK: 30 April 2026 – SCG announced its Q1/2026 operating results, highlighting an Adjusted Cash EBITDA of 14,929 MB, a robust increase of 17% YoY. SCG anticipates that the situation in the Middle East will continue to slow down the global economy and lead to continued volatility in energy and raw material prices. In response, SCG is accelerating its “short-term strategy” by actively managing raw material and energy costs, while continuously supporting customers through the implementation of a Daily War Room to enable timely and effective responses. At the same time, SCG is reinforcing strict financial discipline. For its “two-year strategy” (2026–2027), SCG is focused on building long-term resilience by leveraging its diversified manufacturing footprint across ASEAN, adopting Robotics and Automation, advancing the LSPE project in Vietnam, with 54% progress achieved, in line with plan, driving Green, SVP, and HVA products, accelerates the feasibility study for a strategic joint venture in the olefins and polyolefins business in Thailand between GC and SCGC, and advancing its clean energy business.
Thammasak Sethaudom, President and CEO of SCG, said, “In Q1/2026, SCG reported Adjusted Cash EBITDA (cash flow excluding inventory adjustment, impairment, and non-recurring items of business which are non-cash) of 14,929 MB, representing a strong increase of 17% YoY. Profit for the period was 6,223 MB, with total revenue from sales of 123,327 MB. Despite the impact of tensions in the Middle East, which have driven volatility in energy and raw material prices and affected the global economy, Thailand, and multiple industries, and are expected to persist, SCG’s early and proactive strategic decisions have enabled the company to ‘absorb the impact of volatility’ and ‘effectively manage the situation’. As a result, business operations have remained stable and efficient. Under its “short-term strategy”, SCG is managing risks comprehensively through the establishment of a ‘Daily War Room,’ which serves as a command center for closely monitoring and managing raw material and energy costs on a daily basis, alongside continuous customer support across the supply chain. In addition, SCG continues to maintain strict financial discipline to ensure a strong financial position. For its “two-year strategy” (2026–2027), SCG is strengthening its long-term competitiveness by leveraging the advantages of its diversified manufacturing base across ASEAN (Regional Optimization), consolidating production, and applying robotics and automation to enhance product quality. SCG is also advancing the LSPE project in Vietnam, which has progressed 54% as planned, while driving Green, SVP (Smart Value Products), and HVA (High Value-Added) products, accelerating the feasibility study for a strategic joint venture in the olefins and polyolefins business in Thailand between GC and SCGC, and advancing its integrated clean energy business to ensure long-term strength for its businesses and the industry.”
The proactive strategy comprises a “short-term strategy” focusing on intensive and timely adaptation, as follows:
1.) Managing risks comprehensively through the establishment of a ‘Daily War Room,’ which centralizes decision-makers from all functions to leverage data to develop solutions that benefit both customers and the business. This encompasses managing raw material costs by expediting the sourcing of raw materials from alternative sources worldwide. Furthermore, SCG places significant importance on supporting customers throughout the supply chain, enabling them to adapt to and navigate this situation together, particularly by ensuring the continuous delivery of products that cannot be sourced from other manufacturers, such as High Value-Added Products (HVA).
2.) Managing energy costs to prepare for potential oil supply shortages by ‘enhancing energy efficiency and increasing the use of alternative energy,’ as well as ‘increasing the use of EV vehicles for product transportation.’ In addition, having manufacturing facilities distributed nationwide helps effectively reduce transportation costs.
3.) Maintaining ‘strict’ financial discipline. Operational restructuring and the discontinuation of non-profitable businesses in recent periods have resulted in cost savings of approximately 4,300 MB in 2026. Meanwhile, working capital increased by 2,438 MB due to higher inventory levels; however, capital expenditure (CAPEX) remained well controlled at 5,482 MB. As a result, net debt decreased by 2,813 MB, with the net debt-to-EBITDA ratio improving to 5.0 times from 5.5 times. It maintains a strong and stable financial position, with cash on hand totaling 67,137 MB at the end of the quarter.
For its two-year strategy (2026–2027), SCG focuses on “building strength” to enhance competitiveness and ensure long-term resilience across its businesses and the industry, as follows:
1.) Leveraging the advantages of a diversified manufacturing base across ASEAN (Regional Optimization), which continues to show growth potential. This is achieved through production consolidation and the adoption of robotics and automation to enhance production efficiency and product quality, alongside the effective management of energy and raw material costs. These initiatives are expected to reduce costs across ASEAN by over 3,300 MB per year. In addition, the LSPE project will enhance flexibility in the utilization of ethane feedstock at the Long Son Petrochemicals (LSP) complex in Vietnam. Upon commencement of operations as planned by the end of 2027, the project is expected to deliver cost savings of more than 6,000 MB annually.
2.) Driving Green Products, Smart Value Products (SVP), and High Value Added Products (HVA) to meet diverse customer needs, while improving the profit-to-revenue ratio across the business.
3.) Accelerating the feasibility study for a strategic joint venture of the olefins and polyolefins businesses in Thailand between GC and SCGC, following the signing of a preliminary and non-binding Memorandum of Understanding (MoU) to explore such collaboration. The initiative aims to strengthen the security of the supply chain and enhance the competitiveness of Thailand’s petrochemical and related industries, leveraging integrated infrastructure to further enhance global competitiveness. The outcome of the study will be subject to due diligence and the receipt of approvals from both companies and relevant regulatory authorities, including the Trade Competition Commission of Thailand (if required). The evaluation is expected to be completed within Q3/2026. During this period, both companies will continue to operate independently in the ordinary course of business.
4.) Advancing the integrated clean energy business, ‘SCG Cleanergy,’ to meet customers’ demand for alternative energy solutions, reduce costs and exposure to fossil fuel price volatility, and progress toward the net zero target.
The key operating results and highlights for Q1/2026 by business unit are as follows:
1.) Cement and Construction Materials Businesses were supported by growth in ASEAN markets and government infrastructure projects.
- SCG Cement and Green Solutions reported a profit of 2,136 MB.
- Accelerated the growth of “SCG Low Carbon Cement”, expanding domestic market penetration to over 80%, while continuing exports to international markets.
- Focused on the development of High Value Added Products (HVA) to enhance construction quality, reduce construction time, and improve durability, delivering long-term value to customers tailored to specific regional requirements. Examples include CPAC Super / Extras and Advance Series, such as “CPAC Super Coastal Concrete” and “CPAC Extra Marine Concrete” for southern, eastern, and western regions, designed to protect structures in coastal environments, as well as “CPAC Extra Saline Soil Resistance Concrete” for the northeastern region, where saline soil conditions prevail.
- Increased the use of alternative energy, including biomass fuels, refuse-derived fuels, and renewable energy in production processes, resulting in cost savings of over 444 MB.
- Deployed EV Mining Trucks in cement quarries, marking the first such implementation in Thailand, and and piloting the use of electric mixer trucks (CPAC EV Mixer Truck) for ready-mix concrete delivery to customers in the central region..
- SCG Smart Living and SCG Distribution & Retail reported a profit of 804 MB.
- Accelerated the growth of SVP that align with consumer purchasing power, generating revenue of over 993 MB from product categories such as roofing, boards, wood substitutes, thermal insulation, and cement floor tiles.
- Focused on developing HVA with enhanced performance features, such as “SCG Comfort Pavement Tile,” which reduces heat accumulation on surfaces; “SCG Heat Insulation Roofing System,” a solution designed to reduce heat entering homes; and “SCG Celica Zera Ceramic Roof,” which offers strong value for money and has received positive market response.
- Enhanced production efficiency and reduced costs through the adoption of Lean Automation, AI, and the use of quality alternative raw materials, while maintaining product quality standards.
- SCG Decor reported a profit of 247 MB, focusing on advancing its Regional Optimization strategy to strengthen long-term competitiveness. This includes the expansion of glazed porcelain tile production capacity in Vietnam, preparing it to serve as a key manufacturing and export hub in the region, as well as the consolidation of ceramic and glazed porcelain tile production and the addition of new glazed porcelain tile production lines in Thailand, aimed at reducing production costs, improving profitability, and enhancing competitiveness against imported products
2.) Chemicals Business. The situation in the Middle East have resulted in raw material shortages and higher costs. Producers in Asia and the Middle East have reduced production capacity and operating rates by approximately 46 million tons, or around 20% of total ethylene capacity, resulting in reduced market supply. As a result of these cost and supply factors, global prices of polyethylene (PE) and polypropylene (PP) have increased.
- SCGC reported a profit of 1,078 MB, primarily driven by accounting inventory revaluation gains, improved petrochemical spreads, and higher equity income from associates. SCGC continues to proactively adjust its strategy to manage volatility in raw material imports from the Middle East, with a strong focus on sourcing feedstock from alternative regions outside the Middle East, optimizing raw material management and production planning for maximum efficiency, and prioritizing domestic customers to minimize supply chain impacts. At the same time, SCGC continues to drive HVA to enhance long-term competitiveness. However, due to constraints in raw material supply, SCGC has recently undertaken additional temporary shutdowns of the Long Son Petrochemicals (LSP) complex in Vietnam, following the earlier temporary shutdown of the Rayong Olefins (ROC) plant in Thailand. During this period, SCGC is carrying out maintenance and accelerating preparations for the ethane feedstock enhancement project at the LSP complex, which has now reached 54% completion. The project remains on track for operations by the end of 2027, to further support long-term competitiveness. Aside from these temporary shutdowns at LSP and ROC, operations at other plants within the Chemicals Business continue to operate as normal. In addition, SCGC is accelerating the feasibility study for a strategic joint venture in the olefins and polyolefins business in Thailand between GC and SCGC.
3.) Packaging Business. Demand for consumer packaging in ASEAN and export markets remains and continues to grow.
- SCGP reported a profit of 1,566 MB, driven by the recovery of operations in Indonesia following efficiency improvements and cost reductions, as well as continued growth in domestic consumption across ASEAN markets. SCGP is focused on increasing the proportion of consumer packaging revenue in ASEAN, its core market, while operating under a customer-centric approach (Customer Centricity). It also continues to ensure business continuity, alongside enhancing production efficiency and optimizing energy usage appropriately.
4.) Clean Energy Business
- SCG Cleanergy reported total installed capacity of 141 megawatts from projects already in operation. Through proactive management, it has streamlined project development processes to be more efficient and faster, enabling large-scale projects to commence commercial operations as planned. These include power purchase agreements with the public sector (CMT1), as well as private sector partnerships such as with Seagate Technology (Thailand) Co., Ltd. In addition, SCG Cleanergy continues to advance projects under development to maintain growth in line with its targets.
“Despite continued high volatility in both the Middle East and the global economic landscape, SCG will maintain ‘strict’ financial discipline and ‘accelerate efforts’ to ‘strengthen’ the competitiveness of all businesses to be ‘resilient’. SCG will closely monitor evolving conditions and continue to proactively adapt across all areas to navigate challenges effectively. SCG remains confident in its ‘strong’ financial position, with sufficient cash on hand and the ability to sustain long-term growth,” said Thammasak, President and CEO of SCG.
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