East African Portland Cement posts pretax loss

East African Portland Cement posts pretax loss
03 March 2015

East African Portland Cement Co (EAPCC) posted a first-half loss after a maintenance shutdown of its packing and clinker units.

The company reported a pretax loss of KES124m (US$1.36m) for the six months to end of December, against a profit of KES171m in the same period in 2013.

The firm, which also operates in Uganda, said it hopes to regain its market share in the industry after completing a plant refurbishment in the second quarter of this financial year.

"Despite the growing competitive environment, there are opportunities for growth to meet the increasing local and regional demand for cement," the company said in a statement.

Total revenues fell 9.6 per cent to KES4.1bn, while the cost of sales increased eight per cent to KES3.5bn.

EAPCC has an integrated plant at Athi River with a clinker capacity of 0.45Mta and cement capacity of 1.4Mta. It also has a number of downstream concrete activities. Cement market share is estimated at 24 per cent through its Blue Triangle brand.

Management has indicated an intention to expand capacity to maintain market share with a plan for a KES1.8bn (US$21m) kiln upgrade to increase clinker production to 1.5Mta by 2016.

Published under Cement News