SCGC Acquisition and Expansion Strategy
Summary
Persisting business challenge albeit with gradually improving outlook in 2023
.
SCG faced strong headwinds in 2022 from geopolitical tensions, energy crisis, China's prolonged Covid shutdown, rising inflation
and interest rate hikes. Particularly soft demand pressured chemicals business, exacerbating what already was a trough cycle.
• We expect 2023 business environment to be more favorable towards the second half of the year.
• Chemical challenges are likely to continue in H1/23 but China's reopening is helping to lift sentiment.
• Outlook for energy cost is mixed, with higher electricity tariff in Thailand but lower coal cost trajectory.
• SCG will proactively manage cost by increasing alternative fuel use, adding renewable MW, upgrading equipment to be more
efficient, and passing through costs.
⚫ Business transformation and strategic execution for longer term growth will continue. LSP project startup is expected in the
middle of 2023.
Ensuring sufficient liquidity, prioritizing CAPEX and investment, improving balance sheet strength, and deleveraging are SCG's
key financial priorities for 2023.
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