September 2024
Nigeria: Dangote Cement recorded a net profit of US$422m in the first half of 2020, up by 5.8% year-on-year from US$308m in the first half of 2019. Net sales were US$1.23bn, up by 2% from US$1.21bn. Nigerian sales made up 70% of the total at US$861m, up by 1.2% from US$850m.
The company said, “Most Covid-19 lockdown measures started at the end of March 2020 and peaked in April 2020. The response by the authorities varied in nature from specific temporary restrictions in some countries to a complete temporary lockdown for non-essential businesses. Our operations in South Africa, Congo and Ghana were shut down due to full or partial lockdown in most of April 2020. By early May 2020, lockdown had eased, and all our businesses were operational.”
Regarding its Nigerian operations, it said, “Lagos, Abuja and Ogun states locked down from 31 March 2020 to 4 May 2020. As a result, April 2020 volumes were heavily impacted and 28% lower than in April 2019. Other states joined with complete or partial lockdown during the month.” It estimated that a recession would strike the economy before 31 December 2020, compounded by the Covid-19 outbreak and a first-half global oil price slump.
India: Ambuja Cement’s net profit in the first half of 2020 was US$22.1m, up by 1.5% year-on-year from US$21.7m in the first half of 2019. Revenues decreased by 15% to US$127m from US$149m. The company sold 9.95Mt of cement over the period, down by 18% from 12.2Mt.
Managing director and chief executive officer (CEO) Neeraj Akhoury said, “Volumes were impacted during the second quarter of 2020 as a result of Covid-19 lockdown. Cement demand is expected to rebound, presupposing a normal monsoon and various policy support measures to enhance rural and agricultural incomes. Continued infrastructure, development and affordable housing investment are expected to boost demand growth in the mid-term. The health of our employees and partners is accorded the highest priority.”
Dongwu Cement issues profit warning 27 July 2020
China: Dongwu Cement has predicted a net profit of US$1.71m in the first half of 2020, down by 62% year-on-year from US$4.56m in the first half of 2019. Company chairman Liu Dong said the expected decrease was “primarily attributable to a decline in sales volume and sales price of the group’s products resulting from the outbreak of the coronavirus pandemic during the period.”
Russia: Siberian Cement Holding Company (SibCem) subsidiary Iskitimcement produced 454,000t of cement in the first half of 2020, up by 7.8% year-on-year from 421,000t in the first half of 2019. Cement shipments over the period were 447,000t, up by 7% from 418,000t.
Iskitimcement said that its CEM-I Ordinary Portland Cement (OPC) was its most in-demand product, constituting 53% of total production at 243,000t. Its new CEM-II Portland slag cement, launched on 28 April 2020, achieved production volumes of 4000t (1%). It said that the coronavirus outbreak caused a slowdown in June 2020, resulting in a 7% year-on-year drop in demand compared with June 2019. Managing director Vladimir Skakun said, “The general weakening of economic activity, the fall in oil prices and the exchange rate of the national currency and a decrease in the incomes of Russians are causing concern.”
The company completed the installation of a closed-circuit dynamic separator and bag filter produced by Germany-based Christian Pfeiffer into the Iskitimcement plant’s grinding unit 6 in June 2020. To date, the equipment has produced 114,000t of ultra-fine cement towards an annual target of 480,000t.
PPC’s domestic cement sales grow fast in June 2020 24 July 2020
South Africa: PPC says that pent-up cement demand post-coronavirus lockdown has enabled year-on-year sales growth “in double digits” for the company in June 2020. Sales volumes also rose, by a single-digit figure. PPC said, “This recovery is mostly driven by the absence of imports, which has given an opportunity for local producers like PPC South Africa to grow.”
In May 2020 PPC recorded sales between 30% and 35% lower than in May 2019.
UK: An independent report by Mott Macdonald has found that Breedon Group’s Hope Cement plant in Derbyshire contributes Euro67m/yr to the local economy, up by 15% from Euro58m/yr at the time of the previous report in July 2017. The 1.5Mt/yr integrated cement plant employs 270 people, 202 of them directly, corresponding to 1.8% of total employment in the national park in which it is situated. Its economic contribution to the park’s total economic output of Euro956m is 7%.
Breedon Group said that the 90-year-old plant “Has a long tradition of actively engaging with the local community through its many social and communal activities. These include access for local residents to the Hope Works estate and the Earles Sports and Social Club as well as on-site open days and tours and a range of local business and community partnerships.” Manager Ed Hope said, “It is gratifying to see the healthy increase in our contribution to the local economy over the past few years. We’re very proud of the part we play in the lives and employment of people in the Peak District National Park.”
Zambia: Sinoma Mpande Limestone has donated 1000 bags of cement for use in the construction of a new secondary school in Chongwe, Lusaka Province. The People’s Daily newspaper has reported that the community is responsible for a 25% contribution in addition to World Bank funding for the project. District Commissioner Robster Mwanza said that it was “hard pushed to meet this requirement” and that the cement would “go a long way” in helping.
Denmark: FLSmidth has predicted a 55% year-on-year decline in earnings before interest, taxation and amortisation (EBITA) in the first half of 2020 to Euro48.2m from Euro107m. Sales are Euro1.12bn, down by 15% from Euro1.33bn, and order intake was Euro1.33bn, down by 7% from1.42bn. Net debt is expected to have declined by 15% to Euro309m from Euro363m.
The company said, “Across all regions, the mining industry and especially the cement industry have been negatively affected by the pandemic. Even in the regions with easing of lockdowns and mobility restrictions, it is yet unclear how our customers’ spending patterns will advance. Visibility remains low and our guidance remains suspended.”
Philippines: Eagle Cement has shared plans for the installation of a fifth mill at its 7.1Mt/yr integrated cement plant in San Ildefonso, Bulacan Province at a cost of US$30m. Business World News has reported that the upgrade will raise the plant’s capacity to 8.6Mt/yr. President and chief executive officer John Paul Ang said, “Our strong financial position will allow us to weather this health crisis battering the economy without giving up major components of our expansion plans.”
Eagle Cement said that it “ramped up production” following the national coronavirus lockdown in June 2020 in order “to support the government’s push for accomplishing critical infrastructure projects.” It is currently working towards the launch of an online customer portal for placing and tracking cement orders.
Qatar: Qatar National Cement Company recorded a profit of US$27.5m in the first six months of 2020, down by 32% year-on-year from US$18.8m over the corresponding period of 2019. Sales were US$79.8m, down by 23% from US$104m. The company attributed the decrease to a decline in demand due to the coronavirus outbreak.