This article first appeared on GuruFocus.

Release Date: July 23, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Siam Cement PCL (SCVPY) successfully reduced its net debt from 5x to 3.7x, improving its financial stability.

The company reported a significant year-on-year increase in adjusted cash EBITDA by 47% for Q2, demonstrating strong operational performance.

Siam Cement PCL (SCVPY) achieved a turnaround in its Indonesian packaging operations, contributing to improved profitability.

The company is actively pursuing a customer-centric approach by merging three business units into one, aiming to enhance efficiency and customer satisfaction.

Siam Cement PCL (SCVPY) is making progress on its Ethane project, which is expected to enhance long-term competitiveness and profitability.

Negative Points

The company faced significant challenges due to disruptions in the Middle East, impacting feedstock supply and operational stability.

Siam Cement PCL (SCVPY) had to shut down some chemical operations due to feedstock shortages, affecting production capacity.

The global economic outlook remains uncertain, with potential impacts from geopolitical tensions and inflationary pressures.

The company anticipates increased volatility in energy prices and freight costs, which could affect future profitability.

Siam Cement PCL (SCVPY) is facing competitive pressures from overcapacity in Mainland China, necessitating strategic adjustments.

Q & A Highlights

Q: How did the closure of the Hormuz Strait impact SCG’s operations in Q2 2026? A: Thammasak Sethaudom, President and CEO, explained that the closure of the Hormuz Strait significantly disrupted feedstock supply, cutting 50% of the feedstock to Asia. SCG implemented a “daily war room” strategy to adjust supply chain operations and sourced feedstock from non-Hormuz regions to maintain supply to high-value customers. This required tough decisions, including shutting down some chemical operations temporarily.

Q: What measures did SCG take to improve its financial position in the first half of 2026? A: Chantanida Sarigaphuti, CFO, highlighted that SCG’s net debt decreased significantly by THB39 billion due to strong EBITDA from operations and successful divestment of shares in Chandra 3, which brought in THB25 billion. This reduced the net debt to EBITDA ratio from 5.5x to 3.7x, strengthening the company’s balance sheet.

Story Continues

Q: What are the strategic priorities for SCG’s Cement and Building Materials business? A: Wiroat Rattanachaisit, Vice President, stated that SCG is focusing on integrating its offerings into three pillars to enhance efficiency and customer experience. The company is transitioning to a customer-centric model, streamlining operations, and targeting a THB3,000 million EBITDA value creation by 2028 through productivity improvements.

Q: How is SCG addressing the challenges in the chemicals market? A: Sakchai Patiparnpreechavud, CEO of SCG Chemicals, noted that the company adjusted its product portfolio to focus on high-value-added products and managed feedstock sourcing from non-Hormuz regions. Despite running only one cracker at full capacity due to feedstock shortages, SCG successfully divested shares in CAP, generating THB24.9 billion for debt reduction and investment in the RHP E10 project.

Q: What is SCG’s outlook for the second half of 2026? A: Thammasak Sethaudom, President and CEO, indicated that the second half of 2026 is expected to be more challenging due to ongoing geopolitical tensions affecting energy prices and supply chains. SCG plans to focus on supply chain resilience, accelerate AI and robotics implementation, and continue its deleveraging strategy to maintain financial stability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.