22 September 2015
Qalaa Holdings’ revenue climbs by 37.8% in the first half of 2015 22 September 2015
Egypt: Qalaa Holdings' revenue in the quarter that ended on 30 June 2015 grew by 33.7% year-on-year to US$267m.
In the first six months of the year, revenue rose by 37.8% to EGP US$515m. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rise by 169% year-on-year to US$72.2m in the first half of 2015. Qalaa's net loss after tax and minority interest improved by 55% to US$10.8m in the second quarter of 2015. In the first half of 2015, its net loss after tax improved by 53% to US$25.1m. This improvement comes despite charges of US$13.1m in the first half of 2015 related to discontinued operations.
Revenue growth was driven by strong performance at TAQA Arabia's fuel marketing arm, which reported 72% top-line growth in the second quarter of 2015 and 73%in the first half of 2015. In the cement division, ASEC Cement's Sudan subsidiary Al-Takamol made a strong contribution to Qalaa's top-line growth. Its revenue grew by 96% in the second quarter of 2015 and by 121% in the first half of 2015. Combined, the energy and cement divisions contributed some 70% of total revenue in the second quarter of 2015.
The first six months of 2015 saw ASEC Holding's sale of its 27.5% stake in Misr Qena Cement, which resulted in a gain from sale of investment equivalent to US$8.56m booked in the second quarter of 2015. The exit from Misr Qena Cement is one of several developments taking place during 2015 that play into Qalaa's risk reduction strategy and its ongoing deleveraging programme. Qalaa's ongoing restructuring efforts continue to reflect positively on its financial performance, with significant improvements at the EBITDA level and a continued narrowing of its bottom-line losses, which improved by 53% year-on-year in the first half of 2015.
Qalaa management has reiterated its strategy for 2015, with its underlining factors being the mitigation of financial risk by significantly deleveraging at the holding and platform company levels, as well as limiting operational risk through the divestment of non-core and non-essential assets while focusing resources on core business and ensuring they have the funding needed to deliver on growth plans.
"Qalaa has repeatedly stressed that deleveraging is one of the company's key strategic goals for 2015 and onward," said Qalaa co-founder and managing director Hisham El-Khazindar. "We remain on track with our divestment programme, the proceeds from which will be utilised to reduce total consolidated debt from the current US$971m, excluding debt associated with Africa Railways and a greenfield megaproject, to around US$639m by the end of 2015."
Alkhalij Cement Company to increase production by 50% 22 September 2015
Qatar: In an effort to meet growing demand, Alkhalij Cement Company, part of Qatari Investors Group, intends to invest nearly US$220m on a new production line.
The country's construction market is putting strain on cement supply and Firas Tayssir Ibrahim, chief administration officer of Qatari Investors Group, said that the new line is expected to be operational by the first quarter of 2016. The new line is expected to increase cement production by 50%.
Ibrahim's statement was underscored by Alkhalij Cement Company COO Jose Escalera, who emphasised the extraordinary growth in the country's construction sector. "The unprecedented growth in Qatar's construction remains the primary motive of all companies to place more efforts in improving their products and services to meet the terms of this growth and support it with emphasis on quality and effectiveness factors. This has prompted Alkhalij Cement Company to increase its production capacity to cope with the increasing market demands. While the production of clinker will reach around 2Mt/yr and cement around 3Mt/yr by the end of 2015, our projections show that in 2016 and when our new line is operational, we will need to produce close to 4Mt/yr of clinker and 4.5Mt/yr of cement," said Escalera.
NSIA and Lafarge Africa to support Ogun State forest landscape restoration project 22 September 2015
Nigeria: The Ogun State Government, in partnership with the Nigeria Sovereign Investment Authority (NSIA) and Lafarge Africa, has signed a Memorandum of Understanding (MOU) for the joint development of the Ogun State Forest Landscape Restoration Project.
The MOU would enable the creation of a legal entity to develop the project, engage development agencies and climate change funds and promote it to large agriculture and forestry investors. At maturity, the project is set to transform 1080km2 of heavily degraded land into an arable green area. It is designed to employ innovative approaches to achieve best-of-breed environmental, social and economic results. The scheme's uniqueness rests in the way it combines land restoration with business development objectives by applying the latest findings of agro-ecology and agroforestry.
The first part of the area will be rehabilitated through mixed reforestation to provide biodiversity hotspot corridors, allowing nomadic herders to cross the area with their herds and encouraging subsistence farming. The other part is expected to be leased to agro-industrial investors interested in the development of large-scale tree crop such as cocoa, coffee, rubber and oil palm as well as annual crops such as maize, sesame, cotton and cassava, among others. Forestry projects within strict social and environmental guidelines may also be considered.
"The restoration and enhancement of our forests benefits the environment and creates jobs in rural communities," said Ogun State governor Ibikunle Amosun. "Increasing the pace and scale of restoration is critically needed to address a variety of threats, including fire, climate change, deforestation and others, for the benefit of our ecosystems and forest-dependent communities. This project will show that enterprise and achieving strong mitigation are mutually supportive in tropical agriculture."
Group managing director/CEO of Lafarge Africa, Peter Hoddinott, said that the organisation's strong commitment to environment and social sustainability in its areas of operations had led the company to naturally support the Ogun State project. Promising a strong positive impact on the issues, Hoddinott said that the use of agro-ecology and agro-forestry principles in the projects would increase the company's productivity, ensure the land becomes one of Nigeria's best carbon capture areas and generate biomass waste that Lafarge intends to use to fire its cement kilns.
Cement companies to invest US$18m in NAICM cluster 22 September 2015
Mexico: A group of 20 Mexican cement companies included in the association of independent concrete companies (AMCI) have announced plans to invest US$18m in the installation of a sector cluster to supply concrete for the construction of Mexico City's new international airport (NAICM).
The companies seek to provide 48% of the concrete required for the project and are currently negotiating with the Mexican construction industry chamber (CMIC) in order to obtain the association's support for the initiative. The cluster would encompass the installation of 20 concrete plants with an estimated annual production of 384,000m3. The facilities would be operative while the construction of the terminal lasts, between three and four years.
Independent concrete companies seek to reach a market participation of 80% in Mexico, as big companies like Cementos Cruz Azul, Corporacion Moctezuma and Holcim Mexico sell their non-profitable assets to small and medium sized-enterprises. A total of 50 concrete plants have been taken over by independent firms in 2014 - 2015.
President inaugurates fourth Holcim Village in Akmeemana 22 September 2015
Sri Lanka: The Holcim Village in Akmeemana, Galle, which was constructed by Holcim under its Sustainable Development Project and following its pledge for Livable Communities, has been inaugurated by president Maitripala Sirisena.
The president unveiled a plaque to mark the opening of the Holcim Village and distributed deeds to recipients. The village consists of 14 households and is the fourth of its kind. The Galle project was constructed after Holcim's similar projects in Medirigiriya, Eluwankulama and Puttalam and was designed to cater to the needs of the community surrounding the Ruhunu Cement plant.
The CEO of Holcim Lanka, Philippe Richart, said that the newly-established village was proof of the company's commitment to serve surrounding communities and support their needs.
UltraTech Cement commissions grinding plant at Jhajjar, Haryana 22 September 2015
India: UltraTech Cement has commissioned a 1.6Mt/yr cement grinding plant at Jhajjar, Haryana.
Philippines: San Miguel Corporation will invest US$1bn to build five new cement plants in different parts of Luzon, Visayas and Mindanao. The amount is higher than the earlier announced US$800m due to the addition of three new cement plants to the two previously disclosed facilities.
San Miguel president and COO Ramon Ang said that the five new plants would have a total capacity of 10Mt/yr, 2Mt/yr at each plant. The plants are expected to be operational in 2017. The projects will be undertaken by affiliates Northern Cement and Eagle Cement in Pangasinan, Bulacan, Quezon, Cebu and Davao. San Miguel owns a 35% stake in Northern Cement, while Eagle Cement is privately-owned by Ang.
Ang said that now is a good time to invest in cement because a lot of people are investing in real estate. He added that if ever there were ever oversupply, the market would correct in two to three years. The additional 10Mt/yr capacity would bring San Miguel's cement capacity to roughly 16Mt/yr. Ang said that the cement industry of the Philippines currently has 33Mt/yr of cement capacity, which would increase to 43Mt/yr once San Miguel's new cement plants are in place.