Suez Cement quarterly profit drops on demand, energy shortages

Suez Cement quarterly profit drops on demand, energy shortages
01 November 2013

Suez Cement reported a significant decline in earnings and profit for the third quarter of 2013 due to lower sales and reduced output on the back of energy shortages.

The company, which is part of the Italcementi group, said third quarter EBITDA plunged 42 per cent YoY while net profit fell 72 per cent. Domestic sales of grey cement were down 5.2 per cent during the period.

Following such challenging times, Suez Cement expects improvements in cement demand going forward: "The company is anticipating however some improvement  on both accounts from the trough reached in 3Q. The progressive restart of public and private construction investments, connected with a more stable political situation will impact demand positively," it said in a statement.

However, with question marks hanging over Egypt's energy supply situation, the company added:  "In this context, Suez Cement Group will continue focusing its efforts and investments on industrial and environmental efficiency, while keeping on hold any capacity expansion project.

"Several large investments to develop alternative fuels like coal and waste are underway, expecting official clearance from the authorities. Their implementations would, as early as next year, lower the cement sector dependency from gas and mazot, while contributing to the overall energy crisis in the country."

Published under Cement News