BST Elastomers' blast to cost SCC over Bt1 bn
Siam Cement Plc estimates the loss of about Bt1 billion in quarterly income from Bangkok Synthetic Co Ltd, following the explosion at BST Elastomers Co Ltd.
SCC owns 26 per cent in Bangkok Synthetic and does not involve in the management. Early this month, a toluene tank at Bangkok Synthetic's subsidiary BST Elastomers in Rayong exploded. The plant remains suspended from operations.
In a statement to the Stock Exchange of Thailand, SCC said that this would cut the quarterly equity income from Bangkok Synthetic approximately by Bt300-Bt350 million. It also estimated additional Bt500 million loss per quarter as a result of SCC’s supply chain disruptions and upstream feedstock reconfigurations, which is expected to be minimised as alternative external clients are secured. It also estimated additional Bt150 million quarterly loss as a result of BST’s existing fixed costs, which is primarily depreciation expense.
It said that the estimates did not take into account BST Elastomers' asset write-down and the eventual insurance reimbursement, which depends on its discussions with their respective insurance providers.
