Displaying items by tag: costs

Philippines: Holcim Philippines recorded sales of US$490m during 2022, down by 1% year-on-year from US$499m. Sales rose by 9% year-on-year to US$266m during the second half of the year, 53% of the full-year figure. Throughout the year, the producer increased its alternative fuel (AF) substitution rate by 20% year-on-year and processed 1Mt of waste from industrial partners and local government bodies. Digitisation initiatives and alternative raw materials substitution helped the producer to reduce its specific CO₂ emissions by 7%. The Business Mirror newspaper has reported that the year also brought 'surging' energy and fuel costs for the producer.

President and CEO Horia Adrian said "In the face of extraordinary challenges, our company and people displayed tremendous resilience that enabled us to deliver positive financial performance and contribute to building progress in the country. Alongside a strong sales rebound in the second half and expansion of our customer base, we accelerated the decarbonisation of our operations."

Barbados: Arawak Cement has ceased clinker production at its St Lucy cement plant. The facility will continue to operate as a grinding plant. Loop News has reported that the company now seeks to lay off 70% of the plant's staff. Negotiations between the producer and the Barbados Workers' Union are reportedly in 'advanced' stages.

In its previous restructuring in 2016, Arawak Cement offered voluntary separation packages to employees. At that time, 'unfavourable economic conditions globally and in the region' necessitated cost reduction.

Saudi Arabia: Riyadh Cement's full-year 2022 results show an 11% year-on-year drop in sales to US$159m, from US$179m. The producer's operating and administrative costs dropped throughout the year. As such, it recovered a net profit of US$50.5m, up by 13% year-on-year from US$56.9m.

South Africa: PPC has forecast a drop in its cement sales volumes during the 2023 financial year, which will end on 31 March 2023. It says that its South African sales will drop by 4%, and its Botswanan sales by 7%. In the first half of the financial year, sales dropped by 2.6% year-on-year. PPC now says that disruptions at South African ports will likely limit the decline in its sales volumes in its home country by reducing competition from imports. South Africa imported 30% of cement consumed during the 2022 financial year, however congestion at ports and currency effects have kept this figure from rising throughout the present financial year.

PPC's CEO Roland van Wijnen said "Rising input costs and the objective of maintaining our market share continue to cause margin pressure." The group now expects to reduce its debt by 28 - 33% to US$39.5 - 42.2m in the 2023 financial year.

Afghanistan: Ghori Cement says that its Baghlan cement plants currently produce 600t/day of cement, corresponding to annual production of 0.22Mt/yr. The producer states that production is restricted by shortages of electricity and vehicles. With regular supply of these, it would increase its production by 33% to 800t/day (0.29Mt/yr), according to the company.

Production at the Baghlan cement plants was previously suspended for four months in mid-2022 due to high coal prices. This was resolved when the government began supplying the plants with coal at a pre-agreed price. The plants then reopened with a daily production of 520t/day (0.19Mt/yr), up by 49% from 350t/yr (0.13Mt/yr).

The provincial government said that an upgrade with equipment from China and Iran since increased production by 15% to its present 600t/day (0.22Mt/yr).

Pakistan: Dandot Cement recorded a net loss after taxation of US$463,000 during the first six months of the 2023 financial year. This corresponds to a year-on-year rise of 8% from US$429,000 in the first half of the 2022 financial year. Its finance costs rose by 10% to US$437,000, while its administrative expenses fell by 18% to US$71,400.

The producer's 0.5Mt/yr Lahore cement plant closed in 2019 for a 'balancing, modernisation and replacement' upgrade. Dandot Cement says that the on-going project is on schedule for completion before the end of the current Pakistani financial year on 30 June 2023. The company anticipates a rise in domestic cement demand due to new infrastructure projects and the renovation of existing infrastructure. However, it noted several principal risks and uncertainties, namely rising coal, diesel and electricity prices, rising interest rates, currency devaluation and current overcapacity in the Pakistani cement industry.

Nigeria: Dangote Cement recorded sales of US$3.49bn in 2022, up by 17% year-on-year from US$3.05bn in 2021. The producer's cement sales volumes fell by 5.1% year-on-year to 27.8Mt from 29.3Mt. Its selling and distribution costs rose by over 50% to US$643m, yet profit after tax also rose, by 4.9% to US$833m.

The Premium Times newspaper has reported that the producer invested US$543m in is subsidiaries throughout the year. The group said that most of this investment took place outside of Nigeria.

Nigeria: BUA Cement's gross earnings rose by 31% year-on-year to US$1.29bn in 2022 from US$981m in 2021. Meanwhile, the producer's net profit rose by 2.2% year-on-year to US$193m. The group said that increased bagged cement sales volumes offset the impacts of inflation and currency effects. BUA Cement's full-year finance costs were US$23m, up by a factor of six year-on-year.

Ireland: CRH expects to record increased earnings before interest, taxation, depreciation and amortisation (EBITDA) and profit before tax in its 2022 results. The producer has predicted an EBITDA of US$5.5bn, up by 10% year-on-year from US$5bn in 2021. This would entail a 0.8% year-on-year decline in its fourth-quarter EBITDA in the year. The producer also expects its profit after tax to rise by comparison to its 2021 figure of US$3.1bn.

CRH said that its projection “captures the impact of bad weather, higher energy costs in Europe, the risk of destocking in the building products chain and all this against tough comparisons from 2021.”

Pakistan: Fauji Cement recorded sales of US$406m during the first half of its 2023 financial year, up by 33% year-on-year from US$306m in the first half of the 2022 financial year. The producer's profit was US$61.3m, up by 34% from US$45.7m. During the half, the company's selling and distribution expenses fell by 1.4%, its administrative expenses rose by 8% and its other expenses rose by 12%.