The continued robust petrochemical business contributed most to SCG’s results, but the improved performance of its packaging and cement units played a big part in the surprise upside.

Kasikorn Securities said SCG’s consolidated first-quarter net profit of Bt13.62 billion was 24 per cent higher than its projection, because of 5-per-cent growth of the country’s cement demand in the three-month period.

Most analysts had expected cement consumption to edge up by only 1-2 per cent in the first quarter.

Roongrote Rangsiyopash president and chief executive officer of SCG, said the government’s infrastructure investment projects had started to affect the country’s cement consumption, although the commercial and residential segments had continued to show flat and negative growth during the first quarter.

“Notably, we saw a lot of sales activities in late March, which I guess was due to [buyers] building up their inventories prior to the long [Songkran] holiday.

“We may have to wait for April and May’s sales figures,” said the chief of SCG, which controls about 40 per cent of the domestic cement market.

SCG expects local cement demand to grow by 3-5 per cent this year. The upper end of the forecast hinges on the government’s capability to push ahead its infrastructure projects.

SCG logged flat sales of Bt110 billion in the first quarter, chiefly due to the fall in petrochemical prices. Profit for the period, however, was up 19 per cent from the previous quarter.

Exports declined 8 per cent to Bt29.57 billion, accounting for 27 per cent of the group’s sales, due to the decline in chemical prices and the start-up of its cement plants in Cambodia and Indonesia, which reduced its shipments from Thailand.

SCG’s higher-than-expected profits came from its investment in research and development, which helped its products fatten profit margins during the upcycle.

Its packaging business has acquired some companies, and expanded into the “end-packaging” segment.

The profit contribution from associated companies in the petrochemical business was also better.

The upcycle in the petrochemical business will continue for two to three more years, he said.

The chemical business contributed two-thirds of SCG’s profit in the first three months, or Bt9.11 billion, up 84.5 per cent year-on-year, followed by the cement-building business materials business at Bt3.29 billion (down 7.5 per cent) and the packaging business at Bt1.26 billion (up 42.9 per cent).

Most equity research houses – from Bualuang Securities and KGI to Trinity and PhillipCapital – had forecast SCG to report net profit of about Bt11 billion in the first quarter.

Roongrote said domestic cement prices slid by more than 1 per cent in the first quarter.

Competition in cement and building materials in the region has stiffened, partly due to the increased participation of Chinese players, which hurt producers’ profitability.

SCG’s cement plants in Cambodia have reached near full capacity, and 80 per cent in Indonesia.

The group expects its new cement projects in Myanmar and Laos to take three to six months to reach full capacity after their commencements next quarter and in middle of next year.

SCG was seeking partners to invest in the Vietnamese cement industry rather than building a greenfield plant there. The market in that country is facing a cement glut.

SCG’s stock yesterday closed up 0.82 per cent to Bt492.

“We are unable to disclose details about the total investment for this deal but we can say it is quite a large amount. We believe that this English soccer league is very valuable for PPTV as it can help us build a bigger audience base, particularly sport fans,” Kematat Paladesh, president of Bangkok Media and Broadcasting, the operator of PPTV, told The Nation.

He said winning the broadcasting rights was very satisfying and an important milestone for the station as it continues to edge forward in a very cluttered and competitive television market.

This was also the first time a Thai free-TV broadcaster had secured the EPL rights for three consecutive years.

“Our ambition is to harness the passion of Premier League fans by offering free-to-air live matches on PPTV channel. We have demonstrated over the past year PPTV’s commitment to promoting the Premier League both on air and at local PPTV events to ensure fans are ever closer to the action,” Kematat said in an official statement released yesterday.

Under this sub-licensing contract with BeIN Sports, PPTV will telecast 26 live EPL matches a year plus hold the right to stream live programmes online and conduct related on-ground marketing activities after the current deal for the 2015-16 season with CTH comes to an end in July.

BeIN Sports is currently the official broadcast licensee of the Premier League for Thailand from the 2016-17 to 2018-19 seasons. The new season will start in August.

BeIN Media Group deputy chief executive officer Yousef al-Obaidly said his company believed the foundations were there for both parties to work together in a very fruitful way in ensuring that the English Premier League will have a fantastic free-TV destination.

In another development, The One Enterprise, operator of One digital TV channel, yesterday announced it would add more top-rated dramas, “The Bachelor Thailand” reality show and new situation comedies to its line-up starting next month in order to boost its ratings, which had improved last month. One channel was ranked at No 4 with an average rating of 0.525 point last month, up from No 5 with an average rating of 0.452 point in February.

Takonkiet Viravan, CEO of The One Enterprise, said this was a result of providing new TV dramas since last year. With the new programme line-up, the company aims to achieve its goal of an average rating of 1.0 point by the end of this year. The company targets Bt1.8 billion in revenue this year, almost double last year’s.

“Nobody forced them to sign the MoU. It’s up to them to make the agreement,” Takorn Tantasith, secretary-general of the NBTC, said yesterday.

The reports raised questions about why the government had to intervene in this matter between two private operators.

Some parties are reportedly even suspicious that the MoU could lead to bid-rigging.

However, the MoU had nothing to do with the upcoming re-auctioning of a 900-megahertz licence, Takorn said. It only involved consumer protection and the industry’s growth, he said while declining to elaborate, citing confidentiality.

The NBTC will be the witness to the MoU signing expected today.

High-ranking AIS and True executives did meet with Deputy Prime Minister Wissanu Krea-Ngam, the NBTC and Information Communications and Technology Minister Uttama Savanayana last Tuesday to discuss details of the MoU, he said.

The government on April 12 invoked its special powers under Article 44 of the junta-imposed interim charter to order the NBTC to hold the 900MHz auction on May 27 and extended the switch-off of AIS’s second-generation cellular service to June 30 from April 14.

By April 12, Takorn said AIS and True would also sign the MoU to end their dispute before the new 900MHz auction.

According to an NBTC source, the MoU covers two points.

The first is about a possible agreement that will see AIS roaming its 900MHz subscribers on True’s 900MHz network before AIS ends its service on that spectrum.

The other condition is to settle the disputes stemming from True’s allowing its rivals’ mobile-phone subscribers to request phone-number transfers at 7-Eleven convenience stores. AIS believed that did not comply with the NBTC’s rules.

Takorn said the MoU did not force AIS to roam its 2G subscribers with True. Both sides are free to make any agreement, he added.

AIS also denied it was forced to sign the MoU with True.

In a statement to respond to the reports in social networks, it said that it and state authorities had discussed how it would take care of its customers before the new auction for a 900MHz licence took place.

It also had nothing to do with the MoU document circulating in social networks, it said.