Displaying items by tag: Colombia

Colombia: Grupo Argos subsidiary Cementos Argos increased its consolidated net sales by 6% year-on-year to US$618m in the first quarter of 2021 from US$582m in the first quarter of 2020. Cement sales over the period rose by 19% to 4.1Mt from 3.5Mt. The company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 30% to US$119m from US$91.5m. Its net profit was US$14.7m, compared to US$1.07m in the first quarter of 2021.

The company recorded increased cement volumes in all regions during the quarter. The sharpest regional increase was of 21%, to 1.4Mt from 1.2Mt in the Caribbean and Central America Region. In Colombia, volumes increased by 19% to 1.2Mt from 1.0Mt and net sales increased by 15% to US$161m from US$139m.

Chief executive officer Juan Esteban Calle said, “We are mindful of the social and economic challenges that Colombia is facing after more than 4m people fell below the poverty line as a consequence of the economic impact of the pandemic. We consider ourselves part of the solution and will continue working to build a better country with our optimism intact.”

The company also updated its climate change strategy in line with its target of carbon neutral concrete by 2050.

Colombia: Bancolombia has granted a US$108m loan to Grupo Argos. The loan’s interest rate is linked to two indicators, namely greenhouse gas emissions reductions and the increase in participation by women in the group’s upper management. These factors can decrease the interest rate by up to 100 basic points. The group said that signing the deal constitutes another milestone in realising its environmental, social and governance (ESG) commitment. The financing agreement modifies current conditions for debt and will have a five-year maturity. As such, it does not increase Grupo Argos’ current levels of indebtedness.

Group chief executive officer Jorge Mario Velásquez said “We are proud of this significant step, which reaffirms our commitment to driving gender equality and contributing to fighting climate change with concrete actions. Both of these topics lie at the heart of our Business Group’s strategy, in line with global goals defined in the 2030 Agenda for Sustainable Development.”

Cuba: Cuba’s full-year cement exports totalled 21,200t in 2020, down by 40% year-on-year from 35,200t in 2019. ADN Cuba has reported that the value of exports fell by 45% to US$1.04m from US$1.89m. The vast majority of exported cement went to Colombia. Cuba is currently experiencing domestic shortages of cement.

Colombia: Cementos Argos will hold the virtual launch of Argos Green Solutions on 17 March 2021. The company will use the group to set out its vision of innovation to build a sustainable future. President Juan Esteban Calle and sustainability vice president María Isabel Echeverri will host the event.

Colombia: BBVA has granted a US$45.1m loan to Grupo Argos subsidiary Cementos Argos. The loan includes a pricing adjustment mechanism which links its interest rate to the producer’s environmental, social and corporate governance (ESG) performance rating. The company said that the choice of financing arrangement aims to promote a greater commitment to sustainability management and compliance with socially and environmentally responsible practices that ensure the construction of a greener future. The transaction is the first of its kind in Colombia and constitutes Grupo Argos’ debut in sustainable financing.

Chief executive officer Juan Esteban Calle said, “This is a definite advance in line with our sustainability strategy that fills us with joy, not only because it contributes to our debt profile and reassures our commitment to sustainability as a strategic pillar and source of competitive advantage, but it is also a benchmark of trust for our investors and other stakeholders”

Colombia: Grupo Argos subsidiary Cementos Argos has recycled a total of 7m cement bags since 2013 under its Green Bags recycling initiative. The El Nuevo Siglo newspaper has reported that the recycled bags contained 1000t of paper. In water savings alone, the figure corresponds to 80,200m3 - enough water to supply 472,000 people for a day. 159 commercial customers have so far contributed their used bags. In the Medellín metropolitan area, the programme achieved a bag return rate of 95%.The group overcame coronavirus pandemic-related challenges to recycle 15,900 bags in 2020.

Colombia: Cementos Argos’ full-year consolidated net sales in 2020 were US$2.52bn, down by 4% year-on-year from US$2.62bn in 2019. The group’s cement volumes declined by 9% to 14.7Mt from 16.1Mt. Net profit for the year was US$21.8m, down by 36% from US$34.1m. Volumes, sales and earnings before interest, taxation, depreciation and amortisation (EBITDA) declined in all three of the group’s regions.

The company said that in the fourth quarter of 2020 the construction sector maintained a ‘positive trend,’ supported by the strong performance of the residential segment. It also recorded a slight improvement in the infrastructure segment. The producer said that warehouses and data centre projects had partially offset the weak performance of the segment, as offices and retail had been the most impacted during the coronavirus pandemic.

Chief executive officer Juan Esteban Calle, “I would like thank each one of our employees for their full commitment and resilience during 2020. I believe the experience we all lived over the last year will lead us to be even stronger and more prepared to face the opportunities and challenges of the future.”

Colombia: The Regional Autonomous Corporation of Antioquia (CorAntioquia) approved the modification of the environmental license of Cemex Colombia’s upcoming 1.0Mt/yr Cementera del Magdelena Medio integrated cement plant in Maceo, Antioquia. The modification will allow for the production of up to 1.5Mt/yr of cement annually. It will additionally enable the company to extract up to 990,000t/yr of limestone and clay. The producer called the authorisation an ‘important step’ towards the plant’s completion.

Cemex Colombia and Peru president Alejandro Ramírez said, "The modification of the environmental licence is a milestone that allows us to resume work to make this project a reality, through which it is expected that we will offer our materials for infrastructure and housing works in the country more efficiently."

Colombia: Cementos Argos transported around 50,000t of cement by train in 2020. It plans to increase this by 30% year-on-year to 70,000t in 2021 as part of its sustainability strategy. The cement producer has started using the Belencito - Bogotá and Puerto Triunfo - Puerto Wilches routes as the country has started to revive railway lines in recent years.

Colombia: Switzerland-based finance company RobecoSAM has listed Cementos Argos in the Silver Class in its Sustainability Yearbook 2021. It chose the producer from among over 7000 companies from 61 industries on the basis of its Dow Jones Sustainability Index score.

Cementos Argos Legal and Sustainability vice president María Isabel Echeverri said, “Being included for the eighth consecutive year in the RobecoSAM Sustainability Yearbook encourages us to maintain our high sustainability standards and allows us to continue improving every day so that we can continue contributing to the development and growth of our clients and to the well-being of millions of people in all the territories in which we are present. This recognition is the result of the work of a team committed and convinced of the importance of creating value for society and for the company.”