BANGKOK — SCG posted a 19% year-on-year increase in its 9M/2026 Adjusted Cash EBITDA to 57,357 million baht, supported by ongoing business restructuring, balance sheet discipline, and operational efficiency gains across ASEAN markets. Concurrently, the industrial conglomerate announced strategic plans to merge the domestic olefins and polyolefins businesses of SCG Chemicals (SCGC) and GC. The proposed venture aims to position the combined entity among the world’s top 10 polyolefins producers while strengthening Thailand’s petrochemical value chain.
Financial Resilience and Petrochemical Consolidation
SCG’s operating results for the first nine months of 2026 reflected resilient cash generation amid volatile global energy markets and geopolitical headwinds. Group revenue from sales reached 382,236 million baht, up 3% year-on-year, while total profit for the period climbed 13% to 20,143 million baht. Adjusted profit—excluding inventory revaluations and non-operating adjustments—stood at 14,437 million baht. For the third quarter alone, SCG recorded revenue of 122,666 million baht, Adjusted Cash EBITDA of 14,444 million baht, and a net profit of 2,385 million baht.
A concerted focus on financial flexibility led to a 42,656 million baht reduction in net debt compared to the end of 2025, bringing the net debt-to-EBITDA ratio down to 3.6 times, supported by cash and cash equivalents of 75,147 million baht.
To reinforce long-term competitiveness, SCGC is joining forces with GC to merge their Thai olefins and polyolefins units. The strategic alliance combines feedstock flexibility, expansive regional production bases, and high-value-added (HVA) product pipelines. The venture is targeted to yield US$150–200 million in recurring annual synergies, with formal establishment slated for the second half of 2027.
“2026 has been one of the challenging tests for businesses, marked by geopolitical tensions, trade wars, volatile energy prices, and a global economic slowdown,” said Thammasak Sethaudom, President and CEO of SCG. “Nevertheless, SCG has accelerated its business transformation to build strength and support long-term growth by bringing SCGC and GC together to elevate the petrochemical industry’s global competitiveness, while accelerating the ethane project in Vietnam, and expanding the Low Carbon Cement Platform across ASEAN.”
Operational Restructuring and Regional Expansion
SCG Chemicals maintained its regional realignments despite ongoing margin pressures and global supply imbalances. The business resumed operations at Rayong Olefins Company (ROC) in mid-September 2026 following temporary disruptions tied to Middle Eastern tensions. In Vietnam, the ethane feedstock enhancement project at the Long Son Petrochemicals (LSP) complex is tracking ahead of schedule, with commercial readiness anticipated in mid-2027. The project is projected to deliver over US$250 million in annual feedstock cost reductions.
The Cement and Building Materials Business achieved 16,018 million baht in 9M/2026 Adjusted Cash EBITDA, an increase of 7%, while segment profit rose 53% to 7,459 million baht. Under its unified “One CBM” strategy, cross-category sales expanded by 22%, yielding structural cost synergies exceeding 1,000 million baht. Operations diversified energy intake, increasing alternative fuel (AF) substitution to between 25% and 35%. Its subsidiary, SCG Decor, capitalized on infrastructure-led growth in Vietnam with glazed porcelain tile sales advancing over 32%, supported by the upcoming commissioning of the Dai Loc plant expansion in Q4/2026.
SCG Packaging (SCGP) expanded 9M/2026 Adjusted Cash EBITDA by 24% to 15,725 million baht, driven by an operational turnaround in Indonesia and capacity additions targeting China and India. SCGP also completed an investment in Jin Zhong Fa Paper Industry Co., Ltd. (JZF) to service the agricultural export packaging segment. Across all units, SCG deployed AI and automated robotics to streamline manufacturing and counter energy price swings.
Establishment of the SCGC-GC joint venture remains targeted for the second half of 2027, alongside the planned mid-2027 restart and ethane integration of the LSP complex in Vietnam.
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