Kohat Cement Co's enhances Line 2 capacity and plans solar project

Kohat Cement Co's enhances Line 2 capacity and plans solar project
01 April 2024

Kohat Cement Co (KOHC) has recently completed the BMR of its Khyber Pakhtunkhwa Line 2, enhancing its line capacity to 2.1Mta from 2Mta previously, taking total capacity to 5.2Mta, as well as improving its efficiency by ~10 per cent, matching that of Line 3, according to AKD Research. 

Furthermore, a second solar unit with 15MW capacity is in the pipeline, expected to be commissioned in the 1QFY24-25. With the commissioning of this project, the company’s solar energy will increase up to 17 per cent of its total power mix, from the current seven per cent, taking captive generation to 46 per cent from the current 36 per cent.

KOHC's gross margins have shrunk in the 1HFY23-24 to 27.7 per cent compared to 28.9 per cent last year. This contraction is primarily due to a drop in export retention prices to US$2.20/bag compared to US$2.80/bag in the previous year. Additionally, with an increase in grid power prices, the company’s power charges have risen by 16 per cent YoY to PKR2.3k/t (US$0.008) compared to PKR2.0k/t in the 1HFY22-23. Despite these negative developments, an annual increase in other income (amid increased short-term investments and higher earnings rates) has increased the company’s profit by 19 per cent YoY. 

Published under Cement News