Displaying items by tag: costs

Nigeria: Dangote Cement sold 13.4Mt of cement during the first half of 2023. Its sales volumes outside Nigeria were 5.4Mt, up by 12% year-on-year from 4.9Mt in the first half of 2022. The producer noted 'robust demand' in Ethiopia, the Republic of Congo, Senegal and Zambia. It reported revenues worth US$1.23bn in the first half of 2023, up by 17% from first-half 2022 levels. KOGI Reports News has reported that the producer's profit after tax rose by 3.8% in the half, to US$232m.

Chief executive officer Arvind Pathak said "Dangote Cement delivered positive results in the first half of the year. Our Nigeria operations achieved a 23% quarter-on-quarter recovery in sales during the second quarter of 2023, which was impacted by the general elections and the 'cash crunch.' However, the steep currency devaluation in mid-June slowed this volume recovery and increased already inflated operating costs." He added “We will continue to focus on our strategic growth priorities, hinged on our vision of transforming Africa and building a sustainable future. I am optimistic that our business remains resilient and well positioned to overcome unforeseen macroeconomic headwinds.”

France: Vicat's consolidated sales were Euro1.91bn in the first half of 2023, up by 9% year-on-year from Euro1.76bn in the first half of 2022. The group's earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 17% to Euro314m from Euro269m. Vicat said that it recorded generally 'resilient' sales volumes and price rises across most of its markets. Volumes dropped in France and Switzerland. During the half, Vicat's specific CO₂ emissions per tonne of cement fell by 3.6% year-on-year to 571kg/t from 591kg/t.

Chair and chief executive officer Guy Sidos said "The group has not yet returned to its pre-crisis margins rates. I’d like to thank all our teams for their unwavering commitment enabling us to reach our industrial, financial and climate targets." He added that Vicat is on track to achieve its CO₂ emission target of 497kg/t of cement by 2030.

Regarding its outlook for the current 2023 full year, Vicat said "The group is targeting further significant sales growth, with its markets overall expected to display resilience and reflect the full benefit of the price hikes in selling prices implemented in 2022 and the fresh increases introduced in 2023." It added "The performance in 2023 will reap the benefit of the full impact of the new kiln at the Ragland plant in the US, the elimination of the non-recurring costs incurred in 2022 and the stabilisation in energy costs."

India: ACC recorded sales of US$632m in the first quarter of the 2024 financial year, which began on 1 April 2023. This corresponds to a year-on-year rise of 16% from US$545m. The Economic Times newspaper has reported that ACC increased its cement and clinker sales volumes by 23% to 9.4Mt. The producer reported earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$103m, up by 77% year-on-year. It attributed this to lower costs, including fuel costs, and increased operational efficiencies. Its net profit more than doubled during the quarter, to US$56.6m from US$27.6m in the first quarter of the previous financial year.

ACC said "The cement industry is in positive cycle of demand, as well as cost factors. This comes at the most apposite time, when the company is in a transformation phase, buoyed by synergies with the group. We expect the positive trend of industry to continue in the second quarter of 2023."

Gujarat-based conglomerate Adani Group completed its acquisition of ACC on 16 September 2022. It subsequently began to relocate 'significant roles' from the cement producer's headquarters in Mumbai, Maharashtra.

Mexico: Cemex recorded first-half 2023 revenues of US$8.6bn, up by 11% year-on-year from US$7.76bn for the first half of 2022. The group's operating earnings before interest, taxation, depreciation and amortisation (EBITDA) totalled US$1.69bn, up by 18% from US$1.4bn. The group said that the results bring it close to achieving its aim of restoring its 2021 EBITDA margins.

Chief executive officer Fernando A González said “The success of our pricing strategy, bolt-on investments and Urbanisation Solutions business, as well as decelerating cost inflation, are driving what is shaping up to be a very strong year for our company." He continued "Beyond our financial results, we continue progressing on the ambitious carbon reduction and circularity commitments of our Future in Action programme, remaining on the path to becoming a net zero CO2 company by 2050.”

India: Dalmia Bharat sold 7Mt of cement during the first quarter of the 2024 financial year, up by 12% year-on-year from 6.2Mt in the first quarter of the 2023 financial year. The company's income also rose, by 10% to US$442m, while its net profit dropped by 30% to US$17.6m. Hindu BusinessLine News has reported that the producer noted a continued downward trajectory to its fuel costs. During the quarter, Dalmia Bharat commissioned its new 2.5Mt/yr Bokaro cement plant in Jharkhand, and completed de-bottlenecking work at its 0.6Mt/yr Midnapore plant in West Bengal.

Managing Director and CEO Puneet Dalmia said "This quarter has been a disappointment as against our expectations. Having said so, we remain focused on seizing the emerging demand opportunities.”

Cement Managing Director and CEO Mahendra Singhi added “Given the promising outlook for cement demand, the expectation of stable cement prices during the rest of the year, and the softening in commodity costs, we anticipate a gradual improvement in profitability."

India: Aditya Birla subsidiary UltraTech Cement recorded cement sales volumes of 30Mt during the first quarter of the 2024 financial year, which began on 1 April 2023. This corresponds to growth of 20% year-on-year from first-quarter levels in the previous financial year. The Economic Times newspaper has reported that ICICI Securities expects UltraTech Cement's earnings before interest, taxation, depreciation and amortisation (EBITDA) to fall by 3% year-on-year. Declining fuel prices are expected to have contributed to a drop in the producer's costs. Throughout the quarter, its capacity utilisation rate was 90%.

Oman: Raysut Cement reported a net loss of US$4.52m during the first half of 2023. This corresponds to a drop of 67% year-on-year from US$13.8m in the previous first half. The Oman Daily Observer newspaper has reported that the producer attributed the loss reduction to its implementation of operational efficiency and cost reduction measures, as well as growth in sales volumes, during the latest half.

Indonesia: The Indonesian cement industry produced 29.3Mt of cement during the first half of 2023. This corresponds to a utilisation rate of 51% across an installed national capacity of 116Mt/yr. Throughout 2022, the industry produced 64Mt of cement and recorded a utilisation rate of 55%. Local capacity utilisation levels in the first half of 2023 were as low as 45% in some regions. Only Bali-Nusa Tenggara Region and Maluku-Papua Region did not suffer from overcapacity. National demand was 28Mt in the first half of 2023 and 63Mt throughout 2022. Meanwhile, first-half exports rose by 12% year-on-year in opening six months of 2023.

Indonesia Government News has reported that the Ministry of Industry has instigated a moratorium on investments in the construction of new cement capacity. Director general Ignatius Warsito said "These efforts can provide legal certainty for cement industry players in the country, as well as support competitiveness." Warsito noted the health of Indonesia's existing export markets for cement, but noted the uncertainty of the industry's coal supply and its price. Coal currently accounts for 40% of Indonesian cement's fuel consumption by value.

Malaysia: Malayan Cement expects its sales of cement to remain level at 8Mt/yr throughout the 2023 and 2024 financial years. The New Straits Times newspaper has reported that the producer forecast consistent declines in its cement prices over the period. Meanwhile, it expects the price of Indonesian coal, which it imports for use as fuel, to drop to US$285/t in the 2023 financial year, then by 42% to US$165/t in the 2024 financial year and by 12% to US$145/t in the 2025 financial year.

India: Ambuja Cements and its subsidiary ACC have transitioned to reporting their results in line with the (April - March) Indian financial year. As such, they have published 15-month results for 2022 and the first quarter of 2023. During the period, Ambuja Cements reported sales of US$4.75bn, up by 34% year-on-year from US$3.53bn. Its cement volumes rose by 28% to 68Mt, while its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 11% to US$714m. Meanwhile, ACC recorded sales of US$2.71bn, up by 38% from US$1.97bn in 2021. Its cement volumes rose by 31% to 37.9Mt, while its EBITDA fell by 30% to US$275m.

ACC announced its goal to become India's 'most profitable cement company.' To realise this, the company will implement a three-pronged strategy of capacity expansion, efficiency improvements and development of its distributor and dealer network. Under the capacity expansion heading, the producer will double its production capacity through the construction of new cement plants and the expansion of existing ones. In this, it will lay special emphasis on securing supplies of renewable energy and supplementary cementitious materials, including fly ash from its own power plant segment. The company noted that it recently secured access to 1Bnt-worth of new limestone reserves in Maharashtra, Odisha, Karnataka and Rajasthan. It will also seek to increase its coal production to avoid the rising cost of imports.

In the 2024 financial year, the government of India plans to invest US$11.4bn in the construction of new housing, roads and sanitation infrastructure nationally. Ambuja Cements has forecast an increase in domestic cement consumption of 6 - 8% to over 390Mt/yr. It expects Indian cement production to rise by 8 - 10% year-on-year to 390Mt in the 2024 financial year.