Displaying items by tag: costs
Pakistan: All Pakistan Cement Manufacturers Association (APCMA) members exported 405,000t of cement in February 2022, down by 34% year-on-year from 616,000t in February 2021. Domestic deliveries also dropped, by under 1% to 3.95Mt from 3.96Mt. Amid the declines, Pakistani cement producers have reported a steep rise in their costs due to increases in international freight rates and coal prices and the country’s on-going ban on trade with neighbouring India. Cheaper Iranian cement has undercut Pakistani cement sales to Bangladesh, while the Afghan market has yet to recover following the withdrawal of peacekeeping forces.
CRH’s sales and earnings climb in 2021
03 March 2022Ireland: CRH’s consolidated sales rose by 12% year-on-year in 2021 to Euro28bn. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) for the year rose by 16% to Euro4.83bn.
CEO Albert Manifold said "Our 2021 performance reflects the outstanding commitment and resilience of our people as well as the benefits of our integrated, customer-focused business strategy. Despite an inflationary input cost environment, we expanded our margins and delivered good growth in profits, returns and cash generation. This further underpins our strong and flexible balance sheet, providing us with significant opportunities for future growth and value creation.” Looking to the future, Manifold said “While the demand backdrop remains favourable across our markets, there are a number of challenges and uncertainties which we must continue to manage carefully as we look to deliver further value for our shareholders in the year ahead."
Martin Marietta increases sales and earnings in 2021
25 February 2022US: Martin Marietta’s full-year consolidated sales were US$5.08bn in 2021, up by 15% year-on-year from US$4.43bn in 2020. Its cement sales rose by 9.3% to US$495m from US$453m. Overall, its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 9.7% year-on-year to US$1.53bn from US$1.39bn.
The producer said that its Texas cement shipments increased by less than 1% to 1.1Mt in the fourth quarter of 2021. It attributed the record volume to demand growth from large and diversified projects and increased oil well cement demand. Nonetheless, higher energy and raw materials costs ultimately outpaced shipment and pricing gains.
Algerian cement truckers protest loading law change
21 February 2022Algeria: Some cement truck drivers have launched protests against a change in the law which limits their vehicles’ loads below the previous maximum weight. The L’Expression newspaper reports that protests include refusals to depart and the establishment of roadblocks. The actions have prevented the export of some Algerian clinker. Lafarge Algérie said that it raised drivers’ pay per tonne of goods following the law change. The company stated that the new level of pay ensures that transporters will not lose out as a result.
Algeria is targeting cement and clinker exports of 10Mt in 2022.
Pakistani cement production costs rise
10 February 2022Pakistan: Cement producers have reported a rise in operating costs. The News International newspaper has reported that costs have risen due to a hike in the price of imported Afghan coal. The price of the coal rose by 13% to US$170/t from US$150/t in the week leading up to 10 February. The rise brings it to just 23% below the price of imported coal from South Africa, which is currently US$236/t.
The Pakistani cement industry depends on imports of coal, of which 30 – 40% came from Afghanistan in Northern Pakistani cement production in 2021.
JK Lakshmi Cement’s profit drops despite constant sales in third quarter of 2022 financial year
03 February 2022India: JK Lakshmi Cement recorded revenues of US$159m in the third quarter of its 2022 financial year, consistent with third-quarter levels in the 2021 financial year. Despite this, the company’s net profit declined by 42% year-on-year to US$7.91m from US$13.7m. Its operating costs grew by 4.6% to US$140m during the quarter.
FLSmidth’s full-year sales in 2021 exceed guidance
01 February 2022Denmark: FLSmidth’s 2021 full-year sales were US$2.66bn, up by 6.8% year-on-year from US$2.99bn in 2020. The group had previously forecast sales of US$2.42 – 2.57bn in its guidance for the year. Its EBITA margin was 5.9%, in the upper end of the company’s guidance of 5 – 6%. The company said that the result included costs of acquiring Thyssenkrupp’s mining business.
Turkey: OYAK Cement says that it eliminated 200,000t of CO2 emissions during 2021 through its use of US-based DataRobot’s AI software. The producer said that the technology enabled it to multiply its alternative fuel (AF) substitution rate by seven an reduce its mechanical failure prediction time by 75%. It added that the software contributed to a US$39m/yr drop in costs.
Market report forecasts potential Euro1.5bn in carbon costs for European cement plants in 2022
20 January 2022Europe: A forthcoming report by consultancy CemBR has forecast that the European cement industry could potentially face carbon related costs of over Euro1.5bn in 2022 if production continues at 2020 levels or earlier. It looks at the performance of the European cement sector and the impact of the Phase IV of the European Union (EU) Emissions Trading Scheme ( ETS), which started in January 2021. Other key findings include that the sector reduced its carbon emissions per tonne of clinker by a 0.4% compound annual growth rate (CAGR) to the end of Phase III of the scheme.
The commercial market report has analysed the performance of each individual clinker producing plant in the scheme (including the UK) and has compared the end of Phase III with the beginning of Phase IV. It has also detailed the level of free allowances for part one of Phase IV and undertaken several analytical scenarios. Part one, running from 2021 to 2025, of Phase IV allowances for the whole scheme are around 16% lower than the 2020 level. Allowances have remained unchanged for this period but further ‘significant’ reductions are expected for part two of Phase IV. CemBR also reports that not all member countries are in the same position with regard to Phase IV with some countries exposed to more risk. In addition, there is a wide range of vulnerability with regards to carbon among the 201 operational clinker producing plants even within the same market.
The ‘EU ETS & Cement - Enter the Phase IV’ report is due to be published in February 2022.
Saudi Aramco and China Building Materials Academy launch Nonmetallic Excellence and Innovation Center in Beijing
13 January 2022China: Saudi Aramco and China Building Materials Academy (CBMA) have launched the Nonmetallic Excellence and Innovation Center (NEXCEL) in Beijing. The centre will leverage CBMA's expertise and resources to promote the development and application of nonmetallic technologies offering superior lifecycle cost, efficiency and environmental performance to metal-based alternatives in Chinese construction.
Saudi Aramco’s senior vice president of technical services Ahmad Al-Sa'adi said “We are excited to be part of this important initiative with CBMA, to jointly advance the use of nonmetallics in building and construction in China. At Aramco, we have been developing and deploying nonmetallic solutions within our own operations for more than 20 years as they offer superior lifecycle cost, efficiency and environmental advantages over their metal alternatives.”