SET-listed companies’ H1/2023 performances

Editorial Staff

A sharp decline in oil prices affects SET-listed companies’ H1/2023 performances

Listed companies reported lower sales in the first six months of 2023 mainly stemming from energy and petrochemicals sectors, meanwhile, the accelerating economic activities pushed up selling and administrative expenses, and consequently depressed profitability of businesses across sectors.

SET senior executive vice president Manpong Senanarong said that 764 listed companies, representing 92.49 % of 826 companies listed on SET and Market for Alternative Investment (mai) with the six-month period ended June 30, 2023 (excluding property funds and infrastructure funds), reported their financial performances. A total of 577 companies posted net profits, accounting for 75.52 % of SET and mai-listed companies that submitted their financial statements.

In the first half of 2023, SET-listed companies’ combined sales fell by 2.8 % from the same period last year to 8.34 trillion baht(approx. US$ 238.90 billion). Listed companies’ core and net profits fell due to an increase in their production costs, albeit at a marginal rate, and a 7.8 %-rise in selling and administrative expenses. Regarding their financial position as of June 30, 2023, however, Thai listed companies’ debt-to-equity ratio (D/E ratio) (excluding those in the financials industry group) reduced to 1.53 times from 1.59 times recorded in the first half of 2022.

“Oil prices and gross refining margin plunged and then dealt a blow on sales and profits of energy and petrochemicals businesses. Total sales of non-energy and petrochemical businesses, especially tourism-related businesses including hotels, shops, restaurants and airlines, rose moderately by 4.5 %. However, listed companies faced many challenges such as persistently high production costs, recovering sales activities, surging demand in the post COVID-19 and rising interest rates,” Manpong added.

For mai-listed companies, their combined first-half sales increased 1.3 % to 95.18 billion baht. Their operating profits fell by 14.1 % to 5.55 billion baht, weighed by a 0.3 % drop in production costs to 71.01 billion baht and a 15 % increase in selling and administrative expenses to 18.62 billion baht. Also, their net profits fell by 71 % to 1.5 billion baht.