Philippine Daily Inquirer

SGC net income rose 47% to $295M in 1st quarter

- By Paolo G. Montecillo

That’s around 2,000 kilometers per person.

Urban mass transit is one way to allow less use of personal vehicles on the road. Bus rapid transit corridors are a cost-effective option that can handle up to 50,000 passengers an hour—nearly as many as subways. Jakarta is the first Southeast Asian city to introduce such a system. The results are striking: In 2009, the Trans-Jakarta Busway was used by some 250,000 people a day, an 11 percent increase on the previous year. That resulted in estimated fuel savings equivalent to some $100 million.

Asian cities can go even further, by providing an infrastruc­ture for vehicles powered by cleaner fuels like natural gas, electricit­y and in the longer term hydrogen. Such smarter city planning could transform our global transport system over the next 50 years—and Asia could lead the way. But for these changes to happen, we will need far-sighted government policies and increased collaborat­ion between government­s and businesses.

Growing cities will have a voracious appetite for electricit­y, more so when more of the emerging middle classes buy refrigerat­ors, air conditione­rs, television sets and washing machines. Government­s need to address the environmen­tal impact of the increased energy demand that ensues.

As Asian cities contend on a daily basis with emissions of sulphur oxide, nitrogen oxide, mercury and particulat­es, emissions that cause well-documented health burdens, they also have to manage carbon dioxide emissions from coal-burning to produce power.

Gas is uniquely positioned to address these energy challenges – it is abundant, acceptable and affordable. Gas is abundantly available—the Internatio­nal Energy Agency suggests more than 250 years at current consumptio­n rates. Its relatively low carbon dioxide and other emissions THAI conglomera­te Siam Cement Group ( SGC) grew its profit by nearly half in the first quarter of 2013 over the same period last year amid strong demand in its home market and growth of its subsidiari­es in the region.

The company last week said its net income for the January to March period rose 47 percent to $ 295 million amid the aggressive growth of all of its business units.

In the Philippine­s, where SGC has interests in ceramic tile manufactur­ing through publicly- listed Mariwasa Siam Ceramics, revenues rose 59 percent to P1.67 billion.

The company attributed the growth of its Philippine operations to the “consolidat­ion of its ceramic tile manufactur­ing company and better performanc­e of Mariwasa in SCG cement- building materials businesses.”

As of March 31, sales revenue of SCG’s combined Southeast Asian operations ( excluding Thailand) amounted to $ 278 million, 36- percent up year- on- year, representi­ng 8 percent of SCG’s total revenue from sales.

SGC said it intends to be the market leader in Southeast Asia by continuing to enhance its capabiliti­es and offerings.

“The good business performanc­e of all our business units in the Asean region is a good way to jumpstart our 100th anniversar­y celebratio­n,” SGC president and CEO Kan Trakulhoon said in a statement.

Revenues from units in the region helped boost SGC’s consolidat­ed revenue for the quarter, rising 6 percent to $ 3.67 billion due to higher sales volume in the paper and cement- building materials businesses.

As part of its strategy to grow its business in the region outside Thailand, the company said it recently restructur­ed its businesses by consolidat­ing SCG’s cement, building materials, and distributi­on businesses into one market- facing entity, now referred to as SCG Cement- Building Materials.

The company said its latest investment in Vietnam, the acquisitio­n of an 85- percent stake in Prime Group Joint Stock Company, was another significan­t step that would drive business expansion in Southeast Asia.

 ??  ?? make it environmen­tally acceptable. And it is affordable as it is value for money in the long run. Gas can be the responsibl­e and affordable backbone of an energy system that addresses Asia’s unique challenges.
Shell is convinced that gas is the fuel...
make it environmen­tally acceptable. And it is affordable as it is value for money in the long run. Gas can be the responsibl­e and affordable backbone of an energy system that addresses Asia’s unique challenges. Shell is convinced that gas is the fuel...

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