Siam Gas and Petrochemical, a key player in Thailand’s liquefied petroleum gas (LPG) market, is gearing up for a 10% surge in sales this year. Despite facing a dip in earnings and profit during the first quarter, the company remains optimistic about its growth prospects.
“We anticipate a 10% increase in sales this year, driven by strong demand for LPG in Asia,”
shared Jintana Kingkaew, the deputy managing director for accounting, finance, and procurement at SGP. LPG is a versatile fuel widely used by households for cooking purposes and by businesses for heating, drying, and manufacturing processes.
In 2024, SGP recorded LPG sales of 3.23 million tonnes, with a significant portion of approximately 75% coming from its international operations across Southeast Asia and China. The remaining 25% was attributed to domestic demand within Thailand.
Looking ahead, the company foresees a growth rate of 10-11% in its foreign markets and a slightly lower but still substantial increase of 9% in sales within Thailand. These projections are underpinned by pre-purchase orders secured from customers for the third and fourth quarters of this year.
The fluctuation in revenue and profit observed earlier was explained by Mrs. Jintana as stemming from market dynamics that led to downward pressure on prices.
“Our trading partners pushed for lower prices due to the decline in market rates,”
she noted. This decrease saw average LPG prices drop from US$632 per tonne to $620 per tonne within just one year.
In response to these market conditions, especially considering the impact on end consumers, the Thai government maintained stability by subsidizing retail prices through funds like the Oil Fuel Fund. As such, local prices remained unchanged at 423 baht per 15-kilogram cylinder during this period.
To meet rising demands efficiently throughout the year, SGP imported around 30,000 tonnes of LPG during the first quarter alone. Plans are underway to further boost imports through acquiring a new vessel with enhanced carrying capacity slated for deployment in the second quarter.
Beyond its core LPG business line, Siam Gas and Petrochemical operates various other ventures including energy production plants like the Mawlamyine gas-fired power plant with a generating capacity of 230 megawatts alongside multiple liquid tank farms storing energy products.
Overall non-LPG activities contribute around 2% to SGP’s total earnings portfolio showcasing diversified revenue streams beyond their primary focus area.
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