SET-listed Siam Cement Group (SCG), the country's top industrial conglomerate, has posted a smaller net profit for 2014.
SCG president and chief executive Kan Trakulhoon says 2015 will be a 'golden year' for Asean economies.
But the company expects earnings to rise substantially this year, largely due to demand for cement from the government's planned infrastructure projects, president and chief executive Kan Trakulhoon said yesterday.
SCG's net profit in the fourth quarter of 2014 was 8.86 billion baht, up 11% from the same quarter a year earlier, as greater margins for petrochemicals helped offset losses incurred from high inventories.
For the whole of 2014, the company's net profit was down 8% at 33.6 billion baht.
Mr Kan said demand for cement would rise by an estimated 6% to 42 million tonnes this year.
"Our forecast is based on GDP growth of around 4% this year, and we expect demand for cement to start rising in the second half of 2015," he said.
With greater demand at home this year, SCG sees exports of cement to other Asean countries reaching 4 million tonnes, down from 4.4 million in 2014.
Moreover, the company plans to issue up to 30 billion baht in bond debt in April.
The bond issue will be separated into two tranches, worth 15 billion baht each, of three- and four-year bonds.
"The money raised by the bonds is expected to be used up by the company's investment plans in 2015," SCG said in a press release.
The company also aims to raise the ceiling of its bond issuance by 50 billion baht to 250 billion baht, with the funds used to finance expansion in Thailand and throughout Southeast Asia.
According to its five-year plan for 2013-18, SCG has set aside 200-250 billion baht in the budget for investment expansion such as mergers and acquisitions.
More than 50 billion baht is to be spent this year on investment in mostly Asean countries.
"We will still focus on cement and construction material products, as we see a great opportunity in 2015 when the Asean market becomes a single and bigger market," Mr Kan said.
SCG spent 45 billion baht on investment last year, down slightly from 50 billion in 2013.
Siam Cement shares (SCC) closed yesterday on the SET at 480 baht, up eight baht, in heavy trade worth 1.04 billion baht.