Siam Gas and Petrochemicals Plc (SGP), Thailand's second-largest liquefied petroleum gas (LPG) trader by volume, expects sales to grow by at least 10.5% year-on-year to 3.5 million tonnes in 2026 despite sharp increases in global LPG prices triggered by Middle East tensions.
The company predicted a rebound in 2026 after two consecutive years of contraction.
Pinit Lojindarat, investor relations manager at SGP, said the company sold around 1 million tonnes in the first quarter, with 2.5 million tonnes more projected by year-end.
Overseas markets and trading business will continue to dominate the company's portfolio, accounting for 75% of total sales, while domestic sales will contribute 25%.
The decline in sales over the past two years was largely due to a glut in China, SGP's largest market, combined with weaker petrochemical demand and volatile global LPG prices.
However, the company's first-quarter performance this year showed signs of recovery.
Revenue rose 17.6% year-on-year to 23.2 billion baht, driven by a 33.6% increase in overseas sales, particularly in China and Vietnam, alongside strong growth in its trading business.
Global LPG prices surged after war broke out in the Middle East, disrupting supply routes through the Strait of Hormuz from one of the world's largest production hubs.
Average prices for butane and propane, types of LPG, jumped from about US$520 per tonne in January to $800 per tonne in March, a 53% increase.
The LPG transport disruptions caused SGP to diversify its supply sources, securing shipments from the US and Africa to mitigate risks. Mr Pinit said these measures should ensure stable supply for the remainder of the year, even if the conflict persists.
Domestically, SGP continues to maintain a strong market share, particularly in the automotive and industrial sectors, where its sales growth has outpaced the market average.
The company remains the second-largest player in Thailand's LPG market, reinforcing its position despite challenging conditions.
Looking ahead, he said the energy outlook for the second half of the year is supported by rising demand across Asia.
China, India, and other developing economies are expected to drive consumption in industrial, transport and household sectors, providing a solid foundation for SGP's growth strategy.
