Scan Inter hit by gas prices

SET-listed Scan Inter Plc (SCN), a natural gas trader and operator of compressed natural gas (CNG) stations, posted a smaller first-quarter profit year-on-year on lower gas prices.

President and chief executive Ritthi Kitphiphit said the company had total revenue of 673 million baht in the first quarter, unchanged from the same period a year earlier.

Net profit was 47.6 million baht, down 40% from the same period of last year, when it posted a net profit of 80 million baht.

Mr Ritthi said the drop in net profit was largely due to a year-on-year decline in gas prices.

Although global oil prices are on a rising trend, gas prices during the first quarter stayed low. Gas prices normally lag oil prices by about three months.

But Mr Ritthi predicted brighter business in the second quarter as the rising trend in global oil prices prompts motorists to switch to CNG.

Furthermore, gas demand from clients in the industrial sectors and at factories is expected to increase in line with the recovering economy.

“We are confident that our business in the second quarter of this year will be brighter, since we believe that demand for gas in the transport industry will be higher,” Mr Ritthi said.

Scan Inter recently joined with Japanese trading giant Sojitz Corporation to invest in a comprehensive gas-related business, expecting to tap into higher demand from Asean markets.

The two companies will use their expertise in natural gas to develop new products, particularly gas cylinders for cars.

Sojitz is a trading company with strong experience in marketing and product sourcing, and it can help penetrate the market and supply new gas cylinders for cars to customers worldwide.

Scan Inter, which is keen on engineering and gas-related technologies, would produce several types of gas-related products and gas cylinders to match demand.

SCN shares closed Tuesday on the Stock Exchange of Thailand at 7.05 baht, down 60 satang, in trade worth 115 million baht.