Attock Cement first-half profit declines, Pakistan

Pakistan producer Attock Cement reported a nine per cent decline in net profit for the the first half of FY14 to PKR871m (US$8.26m).

“The decline in profitability of the company is due to a higher tax rate,” JS Global Capital analyst Atif Zafar said, adding that inflationary pressures, particularly higher electricity rates in August last year negatively affected earnings. 

In the second quarter, earnings fell to PRK449m compared to PKR601m in the same quarter of FY13.

However, going forward the company is expected to benefit from higher cement prices in the third quarter of FY14 (Jan-March).

Attock Cement operates a 1.8Mta cement works in Hub, Balochistan, southwestern Pakistan.