Thai Industrial Giant SCG Reports 17% Profit Surge in Q1 2026 Amid Global Economic Volatility

Brickinfo News Agency – SCG has announced a strong financial performance for the first quarter of 2026, recording a 17% year-on-year increase in Adjusted Cash EBITDA despite persistent geopolitical tensions in the Middle East. The Thai conglomerate is navigating global economic uncertainty through a dual-track strategy focused on immediate cost management and long-term regional optimization. Central to its future growth is an accelerated feasibility study for a strategic joint venture between SCGC and GC in the olefins and polyolefins sector, aimed at bolstering Thailand’s petrochemical competitiveness on a global scale.

For the first quarter of 2026, SCG reported a profit of 6,223 MB on total sales revenue of 123,327 MB. The company’s Adjusted Cash EBITDA reached 14,929 MB, reflecting proactive measures to absorb the impact of fluctuating energy and raw material prices. To maintain stability, SCG has implemented a “Daily War Room” as a command center to monitor costs in real-time and ensure uninterrupted supply chains for its customers, particularly for High Value-Added (HVA) products.

“SCG’s early and proactive strategic decisions have enabled the company to absorb the impact of volatility and effectively manage the situation,” stated Thammasak Sethaudom, President and CEO of SCG. “Under our short-term strategy, we are 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. For our two-year strategy, we are strengthening long-term competitiveness by leveraging our diversified manufacturing base across ASEAN, consolidating production, and applying robotics and automation.”

The company’s financial discipline has led to significant cost savings, with operational restructuring yielding approximately 4,300 MB in 2026. Net debt has decreased by 2,813 MB, improving the net debt-to-EBITDA ratio to 5.0 times. Meanwhile, the LSPE project in Vietnam has reached 54% completion and remains on track to begin operations by late 2027, which is expected to deliver annual cost savings exceeding 6,000 MB through enhanced feedstock flexibility.

In the chemicals sector, SCGC reported a profit of 1,078 MB, driven by inventory revaluation and improved spreads, despite temporary shutdowns at the Long Son Petrochemicals (LSP) complex and Rayong Olefins (ROC) due to raw material constraints. In the packaging sector, SCGP saw a profit of 1,566 MB, supported by recovering operations in Indonesia and robust consumer demand across ASEAN. Additionally, the SCG Cleanergy business continues to expand, with 141 megawatts of installed capacity currently in operation.

Looking ahead, SCG is focusing on its “Regional Optimization” plan, which aims to reduce costs across ASEAN by over 3,300 MB per year. The company is also prioritizing Green Products and clean energy solutions to mitigate fossil fuel price volatility. The ongoing joint venture study with GC is expected to be finalized by the third quarter of 2026, potentially creating a more resilient infrastructure for Thailand’s petrochemical industry.