The SET-listed Siamgas and Petrochemicals Plc (SGP) reported third-quarter year-on-year growth of 35% in revenue and of 1,439% in net profit on high efficiency in feed stock management.
However, its nine-month net profit suffered a 55% fall.
The largest liquefied petroleum gas (LPG) distributor in East and Southeast Asia expects revenue to reach 50 billion baht this year, up by 30% from last year, as a result of the better-than-expected results.
"The fourth quarter is also the high season, so we're confident our sales could jump that high," said deputy managing director Jintana Kingkaew.The company's third-quarter revenue totalled 13.4 billion baht for a net profit of 191 million.
Revenue for the first nine months was 36.2 billion baht, up by 26%, but net profit slumped by 55% to 484 million due mainly to the depreciation of property, plant and equipment, amortisation expenses of intangible assets and revaluation of assets of Siam Ocean Gas and Energy Ltd, which it acquired last year.
Ms Jintana said demand for gas will increase over the cool season.
SGP has received import and export tax privileges for its gas store in Shantou, China, and these benefits will help boost sales growth.
"We changed strategy for inventory management to make it suit market demand and the environment as much as possible," said Ms Jintana.
"The efficiency of stores management, especially for international trading, resulted in our profit margin increase."
She said even though the gas price rose in the third quarter, it was still lower than in the second quarter, but sales volume increased due to demand from retail dealers as they prepared stock for the cool season.
SGP plans to use its Shantou base as its distribution centre for China.
The company also has the efficiency to increase trading in South and Southeast Asia, while domestic sales should also grow, said Ms Jintana.
Shares of SGP closed yesterday on the SET at 14.40 baht, unchanged, in trade worth 10.8 million baht.