SET-listed Siam Gas and Petrochemical (SGP) is gearing up for an exciting year as it anticipates a 10% increase in sales, despite facing some hurdles. The company, known as Thailand’s second-largest liquefied petroleum gas (LPG) trader, is optimistic about the growth prospects in the Asian market.
Jintana Kingkaew, the deputy managing director for accounting, finance, and procurement at SGP, shared insights into the company’s outlook. She highlighted that while earnings and profits dipped in the first quarter, SGP remains bullish about its sales performance for the rest of the year.
“LPG is a versatile energy source widely used by households for cooking and businesses for various industrial processes like heating and drying. Our focus on meeting this demand has been instrumental in driving our sales growth,”
Jintana explained.
In 2024, SGP recorded LPG sales of 3.23 million tonnes, with a significant portion coming from overseas markets in Southeast Asia and China. This year, the company foresees a robust foreign business expansion of 10-11%, coupled with a 9% growth projection in Thailand. These estimations are based on pre-purchase orders received from customers for the upcoming quarters.
Despite a challenging start to the year marked by a drop in revenue by 16% to 19.7 billion baht and an 80% decline in net profit to 125 million baht due to lower market prices impacting margins, SGP remains resilient. Jintana elaborated on this setback:
“Our trading partners negotiated lower prices amid declining market rates.”
The fluctuation in global LPG prices saw a decrease from US$632 per tonne last year to $620 per tonne in the first quarter of 2025. However, domestic consumers were shielded from price hikes as Thailand’s government subsidized LPG retail prices using funds from the Oil Fuel Fund.
In response to increasing demand projections, SGP imported around 30,000 tonnes of LPG during the first quarter of this year. Anticipating higher import volumes ahead, especially after acquiring a new vessel with enhanced carrying capacity set for deployment in Q2.
Apart from its core LPG business segment driving majority revenues; SGP operates diversified ventures including power plants such as Mawlamyine gas-fired power plant (230-megawatt) and diesel-fired power plant (10MW) located in Myanmar along with maintaining liquid tank farms to store energy products efficiently.
Revenue diversification efforts have led non-LPG businesses to contribute around two percent towards SGP’s total earnings portfolio showcasing strategic operational resilience amidst evolving market dynamics.
As Siam Gas and Petrochemical charts its course through intricate market conditions balancing global pricing trends alongside localized consumer needs; it stands poised for future growth opportunities driven by strategic foresight and operational agility – embodying resilience at its core amidst industry flux.
