Displaying items by tag: Colombia

Colombia: Argos, the cement company of Grupo Argos, reported a 10.6% increase in revenue during the first half of 2019, driven mainly by higher cement volumes in the US and the start of price recovery in Colombia. Its consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 4%.

The company earned US$1.42m in revenue, with a net profit of US$22m, 33.5% higher than in the first half of 2018. Its EBITDA in the US was US$262.4m. Cement shipments were close to 8Mt, 1.2% higher than in the first half of 2018, and concrete dispatches were 5Mm3, a decrease of 2.5% due to the impact of heavy rains in some regions of the US.

“In the first half of 2019 we continued to strengthen our operation and our presence in the United States with the execution of the BEST 2.0 efficiency plan, which, added to the best price dynamics that we began to see in Colombia, allowed us to compensate the pressure we experienced in energy costs,” said Juan Esteban Calle, CEO of Argos. “The significant progress of our divestment plan in non-strategic assets allows us to continue focusing on improving the competitiveness of the company and innovating in products, services and solutions to support the growth of our customers.”

In the US Argos earned revenues of US$781m, 3.5% higher than in the first half of 2018. Its US EBITDA was stable year-on-year at US$108m. Cement dispatches in the US increased by 6.9% to exceed 3Mt, but concrete dispatches decreased by 3.8%, mainly due to heavy rains in the south-central region. The profit in the US was US$11m.

In Colombia revenues during the first half of 2019 were US$352m, 3.3% higher than in the first half of 2018. EBITDA was US$72m, 4% lower year-on-year. Cement dispatches totaled 2.4Mt, a 2.5% reduction. On the other hand, concrete sales remained stable at 1.4Mm3. The company reported that its Argos ONE digital platform continued to give ‘great’ results. From January 2019 to July 2019, 63% of cement and 44% of concrete dispatches were made through this digital platform.

In the Caribbean and Central America, the company highlighted that operations in the Dominican Republic and Haiti continued to be positive, compensating for the challenging political environment that was evident during the period in Honduras and Panama.

In this region, revenues stood at US$286m, a 4.5% reduction year-on-year. EBITDA in this region came to US$79m dollars, 19.8% lower year-on-year. Cement dispatches were 2.5Mt and concrete dispatches were 194,000m3, 1.5% and 3% lower respectively year-on-year.

Colombia: Cementos Argos Colombia supplied around 220,000m³ of concrete and over 8000t of cement for the constriction of the Oriente Tunnel. The road infrastructure project near Medellín in Antioquia is scheduled to be commissioned in mid-August 2019. Work on the project started in 2015. The tunnel had an investment of around US$300m and it will be the longest operational road tunnel in South America when it opens.

Colombia: Cemex Latam Holdings has denied that it has an office dedicated to illegal activity following accusations of bribery in the local media. In a statement to the Superintendencia Financiera de Colombia, the company said that its Enterprise Risk Management office “supports the decision-making process by anticipating and coordinating risk management that could make it difficult for Cemex to reach its strategic objectives and identify short, medium and long-term opportunities.” It addd that risk management was an institutional process followed by companies around the world to anticipate and mitigate potential business hazards.

Cemex Colombia has been linked by Semana magazine and other outlets to payments to political figures in return for preferential treatment on construction contracts. The cement producer has also faced a long running investigation by local and US agencies into unusual payments relating to its Maceo cement plant project in Antioquia.

Colombia: Cemex Colombia has been accused by the news division of Caracol Televisión of allegedly making payments to the Juan Manuel Santos presidential campaign in 2014 in return for preferential treatment on construction contracts. Santos subsequently won the 2014 presidential election and served until 2018.

Sources, quoted by Noticias Caracol from a US police investigation into the company, say that it paid US$1m in cash and contributed cement to local candidates. They say that the local candidates then sold the donated cement at a discount for additional campaign funds. The Office of the Attorney General of Colombia is also investigating the matter. The report by Noticias Caracol follows an expose by Semana magazine.

US: Colombia’s Grupo Argos is in talks with US-based Summit Materials about a potential merger. Sources quoted by Reuters said that the Colombian company would like to combine Cementos Argos with Summit Materials to gain economies of scale.

Summit Materials owns Continental Cement, a cement producer that runs two integrated cement plants at Hannibal, Missouri and Davenport, Iowa. It operates cement terminals at Minneapolis in Minnesota, St Paul in Minnesota, LaCrosse in Wisconsin, Bettendorf in Iowa, West Des Moines in Iowa, St Louis in Missouri, Memphis in Tennessee, Convent in Louisiana and New Orleans in Louisiana. Summit Materials also owns a number of building material companies in the aggregates, ready-mixed concrete and asphalt industries.

Colombia: Cementos Argos plans to sell its stake in Omya Andina for US$18.6m. It said it was focusing on the cement, concrete and aggregates business, according to the La República newspaper. Omya Andina is a subsidiary of Switzerland’s Omya that operates in Colombia. It produces calcium carbonate and speciality chemicals for a range of industries including construction and agriculture.

Dominican Republic: Cementos Argos has opened a new packaging plant to support its Najayo grinding plant. The unit has a capacity of over 1000bags/hr. It also improves dust collection efficiency compared to the previous system. The Colombian cement producer operates two ready-mix concrete plants and a cement grinding plant in the country.

Honduras: Colombia’s Ultracem plans to build a new cement grinding plant in Cortés, Honduras. At present the company has invested US$2m in the country and it employs 60 people, according to La Prensa newspaper. The new production plant will create another 100 jobs. The cement producer currently operates a grinding plant at Barranquilla in Colombia.

Colombia: Cementos Argos’ revenue grew by 14% year-on-year to US$657m in the first quarter of 2019 from US$576m in the same period in 2018. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 3.7% to US$94m from US$90.7m. Its cement sales volumes increased by 4.7% to 3.86Mt from 3.69Mt. Ready-mixed concrete sales volumes increased by 2.3% to 2.5Mm³. Revenue grew fastest in the US followed by Colombia but it decreased in the Caribbean and Central America.

Colombia: Ordinary Portland Cement production grew by 4% year-on-year to 3.05Mt in the first quarter of 2019 from 2.93Mt in the same period in 2018. Data from DANE, the Colombian statistics authority, shows that deliveries to the local market increased slightly, by 3%, to 2.94Mt.