SGP defers debenture issue for retail investors
Siamgas and Petrochemicals (SGP) has decided to postpone a part of its debenture issue to 2012 while expecting a 3-per-cent drop in sales for the fourth quarter due to the floods.
However, the company maintained its sales growth at 50 per cent for this year.
Jintana Kingkaew, deputy managing director, said the company expected to offer three-year debentures worth about Bt1 billion to institutional investors in early December of this year and the remaining Bt5-billion 4-5-year debentures would be offered to retail investors early next year
The proceeds from the debenture sale will be used to pay off debts.
“Institutional investors have expressed interest in the debentures and we will launch the first issue worth Bt1 billion. Debentures for retail investors will likely be postponed to early next year or the first quarter of the year due to the floods. Earlier, the second issue was set to be launched at the same time in December,” Jintana said.
The company estimated its sales of 350,000 tonnes in the fourth quarter of this year, up slightly from 300,000 tonnes in the previous quarter.
Due to the floods, its fourth-quarter sales volume is likely to fall 3 per cent, or about 3,000 tonnes, from the third quarter of this year. It also revised down its planned expansion of fuel stations for this year to six – from 10 as planned earlier – due to difficulties in finding locations.
This year, the SGP maintained its sales-growth target at 50 per cent or about Bt40 billion, and its profit is likely to reach its target or not below last year’s Bt1.17 billion. Domestic sales and exports are expected to make equal contribution to total sales this year.
In the third quarter of this year, the company witnessed a sharp drop in net profit due to fluctuations in the global price of liquefied petroleum gas.
