Torah Portland Cement

Egypt: Torah Cement’s 1H FY04 financial results, slightly above expectations, revealed impressive 33.5% annual top line growth arriving at LE281.9million, a function of both improved cement prices, with export volumes playing a lesser role. Cement and clinker per ton prices advanced in FY04 respective, 29.9% and 33.6%, annually.  The latter’s larger increase bodes well for Torah Cement in particular as clinker exports represent a hefty 93.3% of total exports. Local demand continues to diminish, while regional demand on the contrary, continues to heighten.

Going forward, Torah’s forecasts for sales revenues come in at a 9.4% CAGR over  2004e-2008f, which remains somewhat restrained due to our assumptions of sole use of the plant’s dry kiln capacity, pertaining to 3.2Mta. The investment income account is projected to boost an annual 21x from the  company’s stake ownership in several cement-related companies, primarily  Suez Cement; a company similarly gaining on the sector’s success.