Cement News tagged under: Production costs

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Challenging year in store for Holcim Indonesia?

11 March 2015, Published under Cement News

Holcim Indonesia will be challenged by tighter competition and high debt levels that could spike costs this year, according to a report by Bahana Securities has said after the cement producer announced 30 per cent lower profits last year. Indonesia's third-largest cement producer saw its net profit plunge to IDR668.35bn (US$50.69m) in 2014 from IDR952.11bn in 2013, as costs soared, despite an increase in revenues which were up 8.67 per cent YoY. However, the rise in revenues was could not...

Dangote Cement

02 March 2015, Published under Cement News

Dangote Cement has sent a team of experts to Nepal to study the feasibility of opening a cement plant there. The team is reportedly looking into sites in the Makawanpur and Dhading Districts where the company intends to open a 6000tpd cement plant by June 2017. Nepal currently consumes around 3.5Mta of cement, but this is expected to grow to 6Mta by 2020.  In Ghana the worsening power crisis has forced Dangote to buy fuel for its standby generators, increasing its production costs. Accord...

Lucky Cement first-half profit up 8.5%

23 February 2015, Published under Cement News

Pakistan's leading cement producer, Lucky Cement, reported a profit after tax of PKR5.6bn (US$55.1m) during the first half of FY14-15 versus PKR5.16bn a year earlier. During the six-month period, net sales rose nine per cent YoY to PKR21.4bn. The increase is attributed to a 9.2 per cent uptake in sales volumes to 2.02Mt, a 2.24 per cent improvement in exports to 1.23Mt and a 2.91 per cent rise in net retention. According to Al Habib Capital Markets, Lucky Cement's margins remained sta...

Raysut full-year profit dips, Oman

09 February 2015, Published under Cement News

Raysut Cement reported full-year net profit of OMR27.42m (US$71.22m), 0.4 per cent lower than the OMR27.52m posted in the previous year. Revenue rose 1.1 per cent to OMR94,29m from OMR93.29m, according to a company filing with the Muscat Securities Market on Thursday. A research note by Gulf Baader Capital Markets (GBCM) said the company’s revenue was in line with estimates but earnings was below its forecast of OMR28.8m. According to GBCM, group sales volumes came in at 3.8Mt but ...

SCCC 4Q14 profit declines

05 February 2015, Published under Cement News

Siam City Cement Co (SCCC) reported a decline 4Q14 profit after as its margin was further squeezed by higher power costs and a maintenance shutdown and weak domestic demand. Thailand’s second-largest cement procure posted a 4Q14 normalized profit of only THB642m (US$19.7m), down 26.5 per cent YoY and 39.6 per cent QoQ. The results are attributed to 1) lower domestic demand, but volumes were partly mitigated by an increase in exports following the reopening of Kiln Line 1; 2) a fall in gros...

HeidelbergCement expects positive earnings impact on falling prices

20 January 2015, Published under Cement News

HeidelbergCement AG expects the falling oil prices to have a positive effect on the company`s earnings in 2015, a company spokesperson told German weekly Euro am Sonntag. The low fuel prices will have a positive impact on the company’s energy costs, the spokesperson said. In November, the global cement major said its third-quarter operating income before depreciation (OIBD) increased by 10 per cent to EUR866m thanks in part to price increases and declining energy prices.

India Cements: INR370kg/bag isn't viable

23 December 2014, Published under Cement News

Producing cement in southern India at the current price of around INR370 (US$5.83)/50kg is not viable, according to N Srinivasan, India Cements' vice-chairman and MD. Against a background of falling demand, interest, freight and other manufacturing costs were steadily increasing, pushing cement producers into losses. “Cement is treated as a commodity, but it is actually a manufactured product but doesn’t get the benefits of a manufactured product,” he said. “Over the last eight years, ...

Ethiopia: talks on 10-year industry development strategy

23 December 2014, Published under Cement News

Discussions are being held by stakeholders on a draft 10-year cement development strategy for the development of Ethiopia’s cement industry. State Minister of Industry Mebrat Meles said the strategy will be aimed at boosting plant productivity and ensuring the availability of cement at affordable prices for low income earners. Representatives from domestic cement plants share this same view and vowed to realise the strategy, according to local press reports. Problems of limited capacity...

Pakistan producers bring prices down

18 December 2014, Published under Cement News

Pakistan cement producers have reduced prices by PKR5-23/bag, passing on the cut in the prices of petroleum products and coal, according to a recent market survey. Bestway Cement reduced the price to PKR492 from PKR502/bag (US$5), Dewan Cement to PKR490 from PKR510/bag, Cherat Cement to PKR495 and Lucky Cement slashed the price to PKR497 from PKR520/bag, according to a report by local press. The wholesale price of a cement bag has declined to PKR472 and PKR480 in Khyber Pakhtunkhwa and ...

Lafarge Malaysia's 3Q14 pretax down 54.2%

19 November 2014, Published under Cement News

Lafarge Malaysia reported a 54.2 per cent drop in third-quarter pretax profit on lower revenue and higher operating cost arising from the increase in electricity and fuel prices. Pretax profit for the three months to the end of September 2014 plunged to MYR73.9m (US$21.98m) from MYR161.41m a year earlier, the country's largest producer said in a statement released yesterday. Revenues over the three month period fell to MYR664.63m from MYR728.01m in 3Q13. The decline in sales mainly att...