SET-listed companies' 9-month performance affected by weak oil prices and economic slowdown

SET Senior Executive Vice President Manpong Senanarong said that 815 SET-listed companies have submitted their operating results, accounting for 97.26 percent of the total of 836 companies (SET and mai-listed firms with financial statements ended September 30, 2023, but excluding property and infrastructure funds). The record showed that 614 companies, or 73.27 percent of all the companies that submitted the financial statements, reported net profits.

For the first nine months of 2023, SET-listed companies reported the total sales of THB 12.73 trillion (approx. USD 361.34 billion), down 3.4 percent from the same period last year. Even though the production costs dropped 2.9 percent, their core operating profits and net profits fell 16.0 percent to THB 1.25 trillion and 10.6 percent to THB 740.81 billion due to a 5.8 percent increase in selling, general and administrative expenses.

Regarding financial position, Thai listed firms, excluding the Financials Industry Group, had a debt-to-equity ratio (D/E ratio) of 1.55 times as of September 30, 2023, down from 1.58 times over the same period last year.

"Oil prices and the global economic slowdown, which dealt a blow on the energy, petrochemicals and chemicals, and export sectors, dragged down the overall sales and net profits. Excluding earnings of these sectors, SET-listed companies' overall operating results were stable, thanks to the growth in the Banking sector in line with the higher interest rates, the Insurance sector recovering from the COVID-19 situation, the Tourism & Leisure sector benefiting from the country reopening, and the Information & Communication Technology sector with high demand in the digital age," added Manpong.

As for the operating results of mai-listed companies for the 9-month period of 2023, the total sales were up 1.2% on year to THB 145.34 billion and production costs edged 0.3 percent lower to THB 107.74 billion. mai-listed companies' total operating profits and bottom line fell 12.9 percent and 35.0 percent from the same period a year earlier to THB 9.28 billion and THB 5.48 billion, respectively, eroded by a 13.4 percent year-on-year increase in the selling, general and administrative expenses to THB 28.32 billion.