Cementos Pacasmayo full year sales rise 16.6%, Peru

Peruvian cement producer Cementos Pacasmayo’s reported that cement sales volume increased by 16.6 per cent in 2012 compared to 2011, and 14.2 per cent in 4Q12 compared to 4Q11.

Cement EBITDA increased 7.9 per cent in 2012 to PEN292.1m, and 11.7% in 4Q12 to PEN78.3m. Net income increased 134.9 per cent in 2012 compared to 2011 (PEN159m versus PEN67.7m), and 41 per cent in 4Q12 compared to 4Q11 (PEN 39.9m compared to PEN28.3m).

Earlier this month, Fitch Ratings has assigned the following initial ratings to Cementos Pacasmayo: Foreign currency Issuer Default Rating (IDR) 'BBB-'; Local currency IDR 'BBB-'. The Rating Outlook is Stable. Fitch said the ratings reflect the company's solid business position, as the only cement producer in Peru's northern region. Pacasmayo's position has resulted in high margins, low leverage and solid liquidity. The small size of the cement market in the north, as well as the difficulty of logistics in this region, has limited the impact of imports and the probability a global company will enter the region in the near future. Further factored into the ratings is the favorable outlook for Peru's cement industry over the medium term driven by Peru's positive macro-economic and business environment.

Pacasmayo is planning to increase its cement production capacity by approximately 50 per cent through the building of a new cement plant in the city of Piura. The new plant will add cement and clinker capacity of 1.6Mta and 1Mta, respectively. The new cement plant, which is estimated to cost about US$300m, is scheduled to start operations during the first quarter of 2015. In addition the company is also increasing in its Rioja plant's cement production capacity which is expected to be completed during 2013.