Good morning, ladies and gentlemen. Welcome to SCG Analyst Conference for the fourth quarter and full- year results of 2024. I am Sukhanet, and I will be your moderator for today's session. We highly appreciate to welcome all the guests who joined our session online this morning. For those who already joined the session, please kindly change your online register name to your name_your company, so we are able to recognize. Our management are here to provide you the fourth quarter and full year of 2024, as well as the important business updates. After the presentation, we will open the floor up for the question. Today's presenter comprise of SCG management, led by Khun Thammasak Sethaudom, the CEO of SCG, who will walk you through consolidated results and provide highlights of SCG Cleanergy. SCGC management, led by Khun Sakchai Patiparnpreechavud, the CEO of SCG Chemicals.
Next are our management from business related to cement and construction business. Beginning with Khun Surachai Nimlaor, President of SCG Cement and Green Solutions Business. Khun Wiroat Rattanachaisit, President of SCG Smart Living and SCG Distribution and Retail Business, and will also be presenting SCG Decor Public Company Limited. Followed by Khun Chantanida Sarigaphuti, CFO of SCG, who will be presenting the financial parts and also SCGP. Then the sustainability part will be highlighted by Khun Chana Poomee, Chief Sustainability Officer. Without further ado, now let's start today's session, beginning with Khun Thammasak.
Good morning. Would like to start with Happy Chinese New Year. Today I come to report, basically deliver the homework. The homework that we promised in the third quarter last year. If you remember that we declared the strategies to adjust our costs, especially on the long term. Also we are preparing for a resilience for our group to handling the turbulence in the business environment. So we promised a few things. Number one that we promised is we need to restructuring our business. Today I would like to report that we have done the internal improvement, expense reduction, lean operation. This, on one hand, result in a one-time charge approximately THB 1.6 billion. That reflect in the last year. By doing that, we can create an ongoing savings every year on the THB 590 million. This is after tax.
Also we declared that we will close down or discontinue non-performing, non-strategic business. We did that, and that will create a saving around THB 760 million. That will be ongoing also. So in total, we are talking about THB 1.35 billion savings that we will continue to have ongoing. That's number one we have done. Number two, we are declared that we will cut the working capital in the third quarter. We say that we aim for THB 10 billion cut of the working capitals. Thanks to our business unit that try work very hard and try to streamline and synchronize the whole end-to-end supply chain, w e can reduce the working cap on the Q3 to Q4, we can reduce at THB 16 billion. But if you look at the year- on- year, it's THB 6.2 billion saving .
But if you look at from the starting of our campaigns, we can cut more than our target. Dividend from SCG Investment Holdings, we have a very strong dividend in the fourth quarter, THB 7.6 billion. In total, last year we have THB 14 billion in dividend from our investment. This is as strong as a business unit by itself. You can see that this continue for more than 15 years. CapEx management, we spend THB 55 billion in 2024. That include the remaining of the Fajar acquisitions, THB 23 billion. We trimmed down the spending on the CapEx. This year we estimate that we will trim down to THB 30 billion- THB 35 billion. This include the LSP ethane project. That's something we already deliver.
You could see that our EBITDA on 2024 is basically the same level as 2023. We can have the EBITDA THB 54 billion, almost equivalent to 2023. Although we face many business challenge, also as you know, the second half of last year, the chemical business at the rock bottom on interwater industry margin. Also we took the one-time charge. If you add up, you can see that our actual ongoing EBITDA is better than THB 54 billion. The EBITDA itself is quite healthy and stable. At the same time, we put on top of the reduction of working capital, which on year-on-year basis released THB 6.2 billion in the last year. You can see that THB 45 billion from the EBITDA from operation plus dividend, plus the THB 6.2 billion on top. That is the cash released from our operation. This allow us to deleverage the debt.
That's very important. We are working to deleverage as we promise. The debt reduction to THB 295 billion by the end of last year. That's from THB 312 billion in the third quarter last year when we announced the campaign. Our net debt- to- equity stand at 0.7x. This you could see that our cash flow is very strong. That why recommend from the board of director to pay the dividend in total THB 5 per share. This will recommend to the general shareholder meeting. This represents our intention to take care our long-term shareholder, all shareholder that we have to take care. If you look at the current price, you could see the yield is around 3.3%. That's something we think we can do because on one hand we have very strong EBITDA and cash generation.
We can reduce the debt, and that why we have to take care of the shareholder. That's something we can deliver. In term of the financing of the ethane project, last week we announced on the progress of the ethane. That one, $ 500 million that Khun Sakchai explained from the original cost $700 million, we can squeeze and make it efficient to $ 500 million. It's a good saving already. We plan to use it from our internal source, and that includes the plan of the divestment. This time I cannot tell much on the divestment, but let's assure that we are working on it, and we are moving on this direction as we promise. That is the highlight I would like to emphasize.
If you look at the detail of sale revenues on the year-on-year basis, sale revenue increased 2%, mainly because of the chemical sale volume increased . We run a few months of the LSP project. EBITDA again, if you look at the year-on-year, our EBITDA level is more or less the same, so very strong in term of the cash generation. That is the stability we can assure you. In term of the profit, you could see that we take the restructuring and we also have the LSP cost that mostly depreciation. So that if you exclude the LSP, we should represent profit of THB 2.7 billion in the fourth quarter last year. If you adjust the one time charge that we took for the business restructuring is even plus for almost another THB 1+ billion .
You could see we took the action to make sure that we are leaner, healthier, and more resilient to absorb the volatility that may happen in this years. That what I can say on the profit side. If you look at why our cash flow is still very strong, you could see that SCG Cement and Green Solutions and SCG Decor, all these three business unit performance year-on-year improve. This is a net profit improve. Of course, SCG Chemicals the net profits reduced significantly, but mostly from the long term, and mostly it is on the depreciation. So depreciation is something that non-cash, and we basically accumulate the cash back for the future investment. SCG Packaging dropped mainly on the Indonesian operation, which according to Phi Wichan a few days ago announced that it start to improve already.
That is the first part I would like to share with you and may I pass to Phi Sakchai Patiparnpreechavud.
Good morning. First of all, I also have to say [Non-English content]. I hope this next years our situation will be better. Let us start with the macro pictures of the last quarters. The global uncertainties and geopolitical remains, resulting in high feedstock and volatilities causing soft demand to our last quarters. Look at the supply side, the impact of the new capacity from China. Also is the quarters that all the player, especially from U.S. releasing the inventory at the year end. That is causing soft petchem price, almost all the products. Olefin chains look at the whole years is quite soft and the last quarters the oil price soft a little bit. Anyway, at the year end, the price is firmer because of these global cold weathers. Naphtha prices also follow the Brent oils drop about $20 / tons. Look at the spread, PE and naphtha is very soft, $316.
This is very low, even softer than the third quarters. PP it seem better because of several capacity in China they could not run because of the propane price is quite strong. That's why even though also the factoring of PP, PDH in China, but the utilization of the last quarter is less. That's why the spread improve a little bit. Look at the volumes, the last quarter it seem we expand our sale volume release 550,000 tons. That's because of the products that from LSP. The third quarters we test run and we have the products to sell in the fourth quarter. That's why overall sale volume increase. That's also make the whole years last years increase 16%, including LSP sale volumes relates to almost 1.9 million tons.
Vinyl chain is also challenging as I used to share because of the construction in China is very weak and the situation still remain. Last quarter on top of that is also EDC price is quite strong. That make the spread drop to 300 level. The volumes also dropped down caused by the incidents happened in the last quarter that make our VCM 1 shut down. Overall last quarter we sell 140,000 make all years also less than the last year. Overall sale volume of PVC is about 650,000 tons. Look at the financials, the revenues, of course, increase following by the increasing on the volume. EBITDA still drop from the last year, but still at THB 7.3 billion. If we just deduct one time gain from IIS, that's about THB 5.2 billion.
In term of profit, last quarters was the first quarter that we have to realize all the depreciation of LSP because LSP COD on October 1st last year. That made overall record loss at THB 3.4 billion last quarter. The whole year is also a record loss as THB 7.99 billion, but that mainly caused by the LHP. LHP alone without IRS is about THB 10 billion loss. Anyway, you look at the existing operation, especially in Thailand, even though last year is a very tough year, but we still have a little bit of profit, almost THB 100 million. Outlook. I just put the colors of this first half of this year. Look at the situation. The capacity addition is still ongoing from China. At the same time, the demand is still challenging.
We also hope after everything stable, demand and the confidence of the buyer will be improved. Expected the margin at the first quarter, the second quarter are still low. So, the low spread from the last quarter will prolong, especially first quarter, and I also look at the second quarter probably more or less the same. But I don't think the spread will be softer. Because of this level, the supplier, especially in Asia, cannot survive. You will see that many players in Asia announce the capacity cut. Right now, not only LHP and also the others in Philippines is also announced the shutdown for probably two quarter or three quarters, as well as the producer in Korea. And coming, we will announce more if the margin still low at this level. That's why I don't think the margin will be softer. Look at the value chain.
The value chain, also the ongoing capacity addition from China. We also hope the real estate and construction recovery caused by Chinese stimulus and global easing monetary policy. That is, we also hope the demand side of the value chain will be improved. At the same time, the EDC cost that is very strong at the last quarter, now getting better because of the new supply from Korea and also U.S. I also hope if this trend about the energy price, the world right now following with the Trump policy to do more of the fossils, if the crude oil softer, this is also positive to petchem business.
This year, we also continues our effort to reduce the working capitals. Of course, during this very challenging situation, we also have to manage the plan carefully, especially in the optimization with products, with market, and also try to accelerate the HVA. For LSP, the expenses in this year, just simple. We have to absorb the cost, about THB 1.2 billion a month. That 40% is non-cash, about THB 500 million. That is depreciation. I just want to recap this project that we already announced from the last few months and just recap what is the key part of our ethane projects. In fact, this ethane retrofit, we are not the first one. This is just alive with the first movers such as Reliance Industries, INEOS, Sadara Chemical Company, that they already utilize ethane from U.S. since 2016, 2017.
It is proven the logistic and also the performance of ethane could contribute to that bottom line. Our ethanes that we look at in the next 5 to 10 years, because of the trend of natural gas consumption increasing, that will make the ethane as one of the component of the natural gas is abundant. We look at the ethane price compare with naphtha. We will get at least $250/ ton. We make the contract. We plan to bring in ethane to LSP about 1 million ton. One of these highlight of LSP, you may know, LSP is a high- risk gas configuration. So basically we can consume propane up to 70%. This is also is good for LSP. Once we decided to modify the plan, we could make it cheaper and faster.
Good news, in the beginning, we have got the approval from board to spend up to $700 million for this CapEx, including the plan modification and also the ethane storage tank. Now, our team effort and also try to save some cost and also decide that we can significantly lower CapEx to $500 million. That makes our project return is quite shorter. Also, in term of the funding of the projects, we going to use our SCG cash flow. Definitely SCG debt will not increase. What we have done in the past few months, actually, we speed up in all of the work stream. I used to share to bring in ethane, the importance. In addition to signing the contract of the ethane provider, we also have to make sure all the logistic from U.S. to Vietnam.
As our plan, we also have to build the solid tank as well as the plans modification. This the key milestone achievements that we just signed the contract in this month with the ethane and logistic provider in U.S., namely Enterprise Products Partners. That the contract we sign 1 million tons. The price is based on the Mont Belvieu. This is the price indicators using in U.S. We also sign three of five VLEC. Anyway, we still have the two ships remaining. The first three ships, we make charter agreement with the Mitsui O.S.K. MOL. The logistic cost is a long-term ship rental plus operating cost by users. For ethane storage, we already select the contractors. Anyway, right now we are in the last stage to finalize the contract, and the contract will be signed the next month.
I already explained the highlight of this LSP retrofit and all of these key milestone achieving. Also still have some key ongoing contract and also the key tasks that our team still working hard to achieve as the plan. Also the license and permit that we have to get approval from Vietnamese government. Now, we also doing parallelly. Next, t o update also on another achievement that we already announced last month. We just acquired one of the recycle company named Teamplas. We acquired 51% of the share. The Teamplas capacity 36,000 tons a year. This recycle company actually is one of the best in Southeast Asia. The capability of this recycles is they can recycle the engineering plastic, mainly focused on the rigid plastic.
To bring back all of the e-waste and also the part of the automotive and grinding and make the formulation and can supply back to the electrical appliance and also automotive industry. We really hope this move will bring us to enters to this ecosystem, not only in Thailand, but also have the potential to expand the business to the Southeast Asia. This is also the recycles that our activities to keep expansion. As we already announced, we have investment in Sirplaste in Portugal and also in the Thailand. This year we also will expand the capacity. Also in Thailand, apart from the mechanical recycle, we also have the cement recycle. That is, we have big progress, and we are going to include some of our mechanical part. We'd hope this new equipment will improve our yield of this advanced recycle.
We will try and share this progress in the next quarter. Totally, if we can achieve this will be about 2,000 tons and potentially can expand much more than this. That's all of my part. Pass to Phi Surachai.
Thank you, Phi Sakchai. Good morning [Non-English content]. May I start from the revenue. Revenue in the fourth quarter slightly dropped 1% year-on-year. EBITDA increased by almost 160%, while our profit improved significantly, mainly from our energy transition effort and our production efficiency improvement. Also, we did streamline our business operation. For the whole year, EBITDA improved almost 30% and profit also improved significantly compared to last year. For Thailand cement market, overall cement demand in the fourth quarter increased almost 5% year-on-year, significantly improved compared to the previous quarter. Our ready-mix concrete demand increased 3% in the fourth quarter, in line with our cement demand growth. The ASEAN cement market also improved compared to the same period last year, particularly in Vietnam and Cambodia, mostly from government spending budget.
For the last year, our alternative fuel usage up to 45%, increased 5% from the previous year, mainly from developing a new decarbonization technology. In term of product portfolio, the replacement of OPC with our low-carbon cement has increased from 63% last year to 87% in 2024. Our low-carbon concrete has been well accepted by real estate developer for a variety of use. For example, housing and condominium project, as well as a precast factory. We continue to optimize strategic location across ASEAN operation to expand export of low-carbon cement to the global market, including U.S., Canada, and Australia. Last month, we opened a new market by exporting our first shipment of low-carbon cement from South Vietnam factory to Oceania. For the outlook, we foresee that continued growth in Thailand construction market in this year, mostly driven by government projects and private investment.
We are seeing continued growth in the regional also. For the future effort, we continue working on cost reduction by increasing our alternative fuel and renewable energy usage. This could help us a lot. For last year, we achieved cost saving around THB 1.4 billion from our cost reduction program. We continue to expand our green product into a new potential market, U.S., Australia, and Oceania, as I mentioned earlier. Lastly, we ensure for the biomass supply by expanding the cultivation of energy crop nationwide. That's all from my part. May I pass to Khun Wiroat.
Good morning, everyone. Today we will begin with the construction materials in Thailand situation. Thailand building material market in the fourth quarter dropped 30%, mainly from the slow demand in the residential segment. However, there are positive signs in the non-residential and government segments. For the regionals market, Indonesia market is seeing steady growth despite uncertainty in government investment. Vietnam market continued to grow while Cambodia market remains slow. For Smart Living and Distribution Retail financial highlight. For the whole year performance, we increased net profit by 19% from the last year thanks to cost efficiency, while sale and EBITDA slightly declined due to the soft demand. The fourth quarter EBITDA and net profit dropped mainly from the one-time expense from operation and business restructuring. Let's move to the Smart Living business effort.
For smart building material system, we prioritize delivering innovation and sustainable product that enhance the customer experience while reducing our carbon footprint at the same time. An example, VERDI is our deck constructed from sustainable bamboo and rapidly renewable resource that offer customer a nature authentic feel. We also the first company in Thailand to achieve carbon footprint of product certification for our roof tiles, demonstrating our commitment to comply with the Climate Change Act. Moreover, our ongoing cost-saving initiative yield around THB 363 million from efficiency improvement. For the smart solution, in response to higher PM 2.5 level and impact on customer health, we have developed a new series of the SCG Active AIR Quality solution that the system deliver better indoor air quality and offer the customization to suit individual design that we show you that outside the meeting room. For the Distribution and Retail, we continue to expand globally.
In the first quarter, Mitra10 in Indonesia opened four new branches, bringing the total to 56 stores. Depo Bangunan also opened three new branches, reaching a total of 16 stores. We also enter in Kenya agriculture machinery market and expand the green business in Korea. For the outlook, we expect growth in government spending in both Thailand and regionals. For the residential market in Thailand, we anticipate modest sale growth driven by the remaining housing stock. However, we still aim to grow the business with the strategy optimize product mix to compete in affordable product segment and expand green product portfolio to align with the industry trend. Drive the significant growth in the solution and use the technology and AI for better customer experience. Growth in international business in ASEAN and SAMEA. That all for SCG Smart Living and Distribution and Retail. The next one is SCG Decor.
Let's move to the SCG Decor performance. In 2024, net profit and EBITDA increased 147% and 4% year-on-year, respectively, while the revenue and sale decreased 10% from the last year. Moreover, the company incurred approximately THB 100 million one- time expense due to the business restructuring and flooding in Mariwasa, Philippines in the end of the last year. Excluding this non-recurring expense, the net profit increased by 11% year-on-year, while EBITDA decreased by 3%. EBITDA margin and net profit margin, excluding the non-recurring expense, improved from the last year. For the Q4 last year, net profit, EBITDA and revenue from sales declined from the last year and quarter without the impact of the scale down solar business. Sales revenue decline would be 8.7% year-on-year. If exclude the non-recurring expense from the non-net profit and EBITDA would decrease only 1% and 12% year-on-year, respectively.
Net profit margin was at 3%, improving from 2.6% in last year and remaining stable. The EBITDA margin was 12.2%, maintaining similar level to the last year. That's all for my part . Pass to Phi Chantanida .
Ka, g ood morning and happy Chinese New Year to everyone. Let me start with a very quick recap on SCG Packaging. They have their own Analyst Conference on Tuesday. On the full year financial performance, revenue was roughly about THB 132 billion, up 3% from 2023. That's pretty much from the higher sales volume in the downstream business. However, if you look at the EBITDA and net profit, it was down 9% on the EBITDA from 2023 and 30% on the net profit. I think it's quite common factor in terms of the drop because of the lower selling price, the higher raw material cost on the recovered paper, and also the higher financing cost as well. Just a reminder that they took a full consolidation on the Fajar in Indonesia, starting from the Q4.
That's also the part of the reason of the lower profit down to THB 3.7 billion last year. On the financials, I think this page should look quite familiar to all of you. Top left, the cash at the end of Q4 remained strong at THB 53 billion. Bottom left, on the long-term debt proportion. If you could recall in the past, debenture roughly represent about 75% of the long-term debt. It has increased to 84% in Q4. That's because we have prepaid all the long-term loan at the LSP. Also, the proportion of the interest rate component, as a result of the repayment of that floating rate loan at LSP, the fixed rate proportion has increased to 91%.
What I would like to update you is that, we have issued the debenture in Q4 of last year, and we continue to receive a very well responded from our bond holders. The resubscription rate of that issuance was quite high at 91%. This is another deliverables that we promised. If you could recall, we were talking about deleveraging. If you look comparing from Q3, our net debt was THB 312 billion. We brought it down to THB 295 billion at the end of last year. As Khun Thammasak mentioned, that's a number of factors, the collaboration of each BU that helped bring down working capital, from half year by THB 16 billion. That results in the released working capital. That means we have higher cash.
Also, in terms of the CapEx, which I'll mention in the next slide, that we control the spending on the capital expenditure investment. So that result in the net debt- to- EBITDA, although it still remain high at 5.5x . It reduced from the 6.3x at the end of September, and we will continue to deleverage and bring our net debt- to- EBITDA ratio down this year. CapEx and investment. 2024, we'd spent total of THB 55 billion. But if you look at the top of the chart, at the 2024, we spent THB 23 billion for Fajar share acquisition. So without that, the total CapEx was roughly about THB 33 billion, which was lower than what we have communicated at the beginning of last year at about THB 40 billion. This year, our plan, CapEx spending roughly in the range of THB 30 billion- THB 35 billion.
That included the LSP ethane project, the spending this year, which we plan about THB 6 billion. That concluded my part. May I pass on to Phi Chana ka.
Good morning. Last year, 2024, SCG absolute gas emission still had done well in line with the science-based targets. Total emission is about 26.25, assuming that normalized with the asset utilization came up with 29, still lower than what we expect. It is thanks to our good innovation and collaborative action with our business partner. We could ramp up the AF, alternative fuel, usage to 29%. In the cement business, the AF usage was up 5% to 45%. It can also get the cost competitiveness benefit. Another major contribution to our achievement is our low carbon cement and concrete, which is the key lever with the growing important foster inclusive green growth. Having previously highlighted energy cost competitiveness, here is another perspective on the revenue from the green product that SCG named the SCG Green Choice label.
Last year, revenue from sale of the Green Choice product was THB 275.6 billion, accounted for 54% from the total revenue. It also mainly from the low carbon cement and concrete, followed by the SCG Green Polymer and the SCGP Green Carton. We can reduce about nearly 1 million tons of the carbon dioxide that in line with what we commit with the science-based targets. Last is the highlight from Saraburi Sandbox that we actively collaborate with our stakeholder using the public-private-people partnership. We can showcase during the COP29 in Azerbaijan and also World Economic Forum in New York Climate Week as the industry cluster driving net zero transition.
Our key success that I want to emphasize will also benefit to all industry in Thailand is the energy transition that we can do very good progress with the Electricity Generating Authority of Thailand to do the floating solar in the Kanchanaburi area and also trying to expand in another area. This is potentially, we can also test the third-party assessment in other area in Saraburi. Second, Thailand industry standard for the new cement, hydraulic cement, named TIS 2594- 2567 will mandatory stated using in this year. With our extensive network stakeholder, we have collaborated to expand project in waste management, low carbon agriculture, land use, and forestry to highlight inclusivity in the Saraburi province that all from SCG. May I pass to Khun Thammasak.
So on the green energy that we are still growing steadily. Last year, we can achieve the 24% growth in the green megawatt. You could see that from 680 MW total to 840 MW. And our green megawatt, that is already in generation. This top up to 255 MW already. We still have a steady growth on this green energy. Another development, which I think is quite important for green energy transition for Thailand is the third-party asset platform. We are part of the Sandbox of the Energy Regulatory Commission on this third-party access. The MOU has been signed with the Energy Regulatory Commission and the solar supplier, and the user. There are several producer and customer that already collaborate on this third-party platform Sandbox.
And collaboration with the leading renewable energy platform company and the Electricity Generating Authority of Thailand to implement the forecasting model for the supply accuracy. This opportunity for clean energies to scale up the private PPA. For example, the data center that really need to have a clean energies. If we have third-party access be open and implemented in Thailand, we can install more of the solar and wind. And that is going to be a foundation of the clean energy transition and also attract the data center. We can expand the third-party access model. We can explore the technology like smart grid and monitoring live on the implementation. Another exciting development on the clean energy is the Rondo heat battery. Our installation in Thailand, in Saraburi, c onstruction progress is now 61% and expect to complete by second quarter this year.
And that will enhance the overall efficiency of the energy storage and will demonstrate how we can use the surplus solar and keep efficiency as a heat and then reuse it in the industry use. So that is for the clean energies. Now, in summary, I would like to give a little bit of outlook. This year, 2025, will be a very dynamic years in my opinions. Global economics may be, according to International Monetary Fund, you could see 3.3%. Several downside risk of the trade war, of the volatility that will happen. I hope that this thing will steer through. But the global GDP is very volatile. China GDP estimated at 4.6%. And the huge Chinese government stimulus hopefully will rebalance the impact from the trade war. Measure including rate cut, debt relief, and CNY 10 trillion that will put into reduce the financial pressure of the local government.
That will definitely impact, shore up the Chinese economy. Brent, t his is probably one of the good news as the U.S. are working to lower the oil price producing more of the oil and gas. We see that the Brent will decline to $65/ bbl in this year. This is the forecast compared to $81/bbl last year. So if the Brent reduce, that supply will reduce and that will improve the chemical margin. But another thing that I start to observe, I observe this for several months already, that chemical industrial margin unlikely to settle lower than this because every time there is a sign of the margin compression below this, people start shut down the operation immediately. And we start to see that many petrochemical operators now are shut down and mothball.
In Europe last year, the quick estimation at the moment is more than 10% of the capacity mothballed. This year will probably be more. Cement, c onstruction, and the related industry benefit from recovery of the demand, especially on the government-led project. First half of last year, if you still remember, there is a problem of the budget delay. This year, we do not see that issue. Our strategies. You could see that we have a very strong EBITDA, very strong cash flow. Our campaigns on lean and restructuring of our non-performing also help us to release more cash, make us healthier. That allow us to repay the debt. This is the resiliency that we are see in our business.
If we can continue to reduce the debt like this, definitely we will be stronger and stronger even though the business environment could be more volatile. Chemical margin and chemical business, of course, we have a full kind of depreciation of the long-term, but that is non- cash. That is something we take it and we want to maintain the cash and make sure that we are optimized the business. The margin unlikely to go lower than this. That mean we are at a certain level of the margin already. That means the volatility will push up. That is something we could see if the oil price going down. Construction materials in Thailand, our Low Carbon Cement Generation 2 will take into the effects and will help us to improve the margin. The government budget, government-related project will shore up the industry.
If you look at Vietnam and Indonesia, for example, Vietnam estimate their GDP growth at close to 8%. Last year, 6%. These will definitely help in term of the overall improvement of our operation. Indonesia also around 5%-6%. That is the growth engine of the regions, which we have a quite large operation in both markets. We still see that our operation in Vietnam and Indonesia is a very strategic investment that will pay back in the medium to long term, because the market is growth and the business environment is still very favorable. That is why we implement the ethane for the LSP and SCG Packaging took the action to shore up the profitability of the Indonesian operation. So that long term, that will really contribute to the shareholder return.
Ceramic business are going well due to the regional market improvement, and especially on the sanitary ware segment. Our strategy that we announced last year, third quarter last year, we demonstrate the progress. We show the resiliency, the strength of our business. Our medium to long-term transformation like ethane at the LSP, we already proved the critical issue, we already complete. Secure the ethane that many people ask whether we can do it or not because the terminal in the U.S. is really tight. We already show that we can do it. The logistic with this VLEC shipyard are really tight. We already get the contract and already secure the whole logistic charter.
These are the thing that we believe that we come to the right direction, just method of the execution, that we will continue this campaign, and we will pay back not only to the long term, but also the medium term and the short term. Thank you.