Fitch: Strong cash flow from Thailand SCG petchems business
SCG will be able to meet the committed capex due to strong cash flow generation from its petrochemicals business as well as THB40 billion ($1.3 billion) in proceeds from the initial public offer of its subsidiary - SCG Packaging Public Company, Fitch explained.
The majority of the capex will be spent on the Long Son Petrochemicals project in Vietnam which will only generate cash flow from 2023.
The ratings agency noted that SCG’s earnings before interest, tax, depreciation and amortization (EBITDA) rose nearly 10% in the first three quarters of 2020 despite a 9% fall in revenue due to strong petrochemical spreads amid supply disruption in Asia and strong demand, particularly from China.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- African PE, PP markets extend slide into May
- Asian PS, ABS markets at 2½-3-year lows amid Chinese oversupply
- India’s Q1 PVC imports hit record-high; did buyers rush to stock up before expected restrictions?
- LDPE prices move below LLDPE, HDPE on global lethargy
- Slide deepens in Middle Eastern PP, PE markets through May
- Oil prices down for fourth straight week, delicate balance ahead
- European ABS under pressure from aggressive imports, PS holds firm
- Türkiye witnesses plentiful PE offers amid globally weak demand
- India PP, PE markets’ slump extends into third month ahead of monsoon
- PP sellers trim May offers further, prices hit 3-month low in Europe