SET-listed Siam Gas and Petrochemical (SGP), Thailand’s second-largest LPG trader, anticipates a 10% increase in sales this year, aiming to boost revenue despite a decline in earnings and profit during the first quarter.
Jintana Kingkaew, deputy managing director for accounting, finance, and procurement at SGP, stated that demand for LPG is expected to remain robust across Asia, even amidst the effect of new US tariffs.
LPG continues to be vital for households for cooking and for businesses in various manufacturing processes such as heating, drying, and curing.
In 2024, SGP’s total LPG sales reached 3.23 million tonnes. Of this, around 75% was generated from its international markets, particularly in Southeast Asia and China, while the remaining 25% came from domestic sales.
The company projects foreign sales to grow by 10-11%, with domestic sales increasing by approximately 9%, based on pre-orders secured for the upcoming third and fourth quarters, explained Mrs. Jintana.
During the first quarter of 2025, SGP’s revenue declined 16% year-on-year to 19.7 billion baht from 23.4 billion baht, and net profit fell sharply by 80% to 125 million baht from 636 million baht.
This decrease was attributed to market pressure for lower LPG prices, as trading partners sought to sell at reduced rates amid falling market prices. The average LPG price dropped slightly from US$632 per tonne last year to US$620 per tonne in the first quarter of 2025.
In Thailand, retail LPG prices remained stable at 423 baht per 15-kg cylinder, supported by government subsidies from the Oil Fuel Fund to prevent a financial burden on households and businesses.
During Q1 2025, SGP imported approximately 30,000 tonnes of LPG, with an expected increase in imports in the second quarter following the acquisition of a new vessel with a higher capacity.
Beyond LPG, SGP operates other ventures, including the 230-megawatt Mawlamyine gas-fired power plant, a 10MW diesel power plant in Myanmar, and 14 liquid tank farms for energy product storage. The company also engages in overseas oil trading.
Sales from non-LPG businesses make up about 2% of SGP’s total revenue.
