Displaying items by tag: Egypt

Egypt: Suez Cement has recorded a loss of US$18.0m in the first three months of 2020, compared to a profit of US$11.0m in the first three months of 2019. Sales fell by 27% year-on-year to US$80.6m from US$110m in 2019. Domestic demand in relation to Egypt’s production overcapacity fell in March 2020 due to the coronavirus outbreak. Daily News Egypt has reported that the second quarter 2020 results will carry greater losses for Suez Cement due to coronavirus lockdown measures and seasonal factors such as Ramadan, with cement volumes down by 27% year-on-year in May 2020.

France: Vicat says that group business activity increased month-on-month between April and May 2020. In a special update on business in the context of the coronavirus, the company said that the outbreak’s impacts varied across the 12 countries in which it operates, all of which locked down due to the pandemic.

In France, the level of business is “slightly lower” than in May 2019 following a steady recovery from a “strong slowdown in mid-March 2020.” Macroeconomic and competition issues continue in Egypt and Turkey, not however due to the coronavirus outbreak, while volumes and prices have generally increased in Switzerland, the US, Brazil and Western Africa, except in Senegal, where the government has cancelled infrastructure projects. Following the pan-Indian lockdown between 24 March 2020 and 17 April 2020, business in India has resumed, albeit at a “level significantly below that of the same period of 2019.”

The group says that it is planning cost-cutting measures and has postponed a planned US price rise to late 2020.

Egypt: Misr Cement Qena’s first quarter sales were US$50.4m in 2020, up by 2.0% year-on-year from US$49.1m in the first quarter of 2019. Daily News Egypt has reported that the company’s debts on 31 March 2020 were US$30.0m, down by 20% from US$37.5 on 31 December 2019. Misr Cement Qena managing director Tarek Talaat said, “The extraordinary performance in the quarter will contribute to alleviating the repercussions of the coronavirus outbreak on the company’s 2020 results.” Talaat urged the “revitalisation of demand” to boost prices. Egyptian producers produced 78.0Mt of cement in 2019, 29.3Mt surplus to the domestic cement demand of 48.7Mt/yr.

Egypt: The Ministry of Local Development has announced the start of a six-month period in which it will issue no construction licences for private buildings in Greater Cairo, governorate capitals and major cities from 27 May 2020. Egypt Today has reported that the suspension also affects licences for building modifications and extensions.

President Abdel Fatah al-Sisi has ordered that mega-infrastructure projects should continue, subject to additional protective measures against the COVID-19 outbreak. Al-Sisi postponed the inauguration ceremonies for the newly constructed New Administrative Capital and Grand Egyptian Museum.

Egypt: Alexandria Portland Cement has reported a 54% year-on-year decrease in net losses to US$2.26m in the first quarter of 2020 from US$4.91m in the corresponding quarter of 2019.

Egypt: Misr Beni Suef has reported a 101% year-on-year increase in net profit to US$3.76m in the first quarter of 2020 from US$1.87m in the corresponding period of 2019. Sales fell by 7.1% year-on-year to US$25.7 from US$27.6.

Egypt: Suez Cement, a HeidelbergCement subsidiary has implemented of a 20% reduction in pay for members of the management committee and a 30% reduction in pay for the managing director in the second quarter of 2020. The cuts are intended as a ‘cost-saving measure’ in line with the company’s aim to reduce expenses. Suez Cement said, “During the last few years the Egyptian cement industry has been going through very challenging times caused by oversupply and a sustained decrease in the demand, and Suez Cement Group has posted negative results. The COVID-19 crisis has complicated market conditions, affecting demand and increasing our costs. Moreover, it has affected our main shareholder, HeidelbergCement. In many countries it has suffered complete shutdowns and it is currently enduring complications in most of the countries that is present.”

Suez Cement continues to employ all staff.

Egypt: Suez Cement has appointed Yasser Elnaggar as its chairman. He succeeds Hayrullah Hakan Gurdal in the role.

Elnaggar is the chief executive officer (CEO) of EN Investment, a management advisory and investment house. Previously he worked as CEO of the Chemical Industries Holding Company (CIHC), a conglomerate made up of 23 Egyptian companies. Alongside this he holds over 25 years experience as a diplomat for the Egyptian government with a notable posting in from 2010 to 2014 as the Deputy Chief of Mission of the Embassy of the Arab Republic of Egypt in Washington, DC. Domestic government roles he has held include working as the Principal Deputy Minister of Planning, Monitoring and Administrative Reform. In this position he helped oversee the implementation of Egypt's 2030 Vision strategy. He also held the post of Principal Deputy Minister of Investment until April 2016.

Egypt: Cement sales have fallen by around 35 - 40% in Egypt. This is reported to be due a number of factors that has each taken a chunk out of demand, including coronavirus lockdown measures, the imminent onset of Ramadan and the start of the wheat harvest season. Cement sales prices are reported to have fallen as a result of the lower demand.

Greece: Titan Cement has published its integrated annual report for 2019, a year in which its net profit fell by 5.5% year-on-year to Euro50.9m from Euro53.8m in 2018 and sales rose by 8.0% to Euro1.61bn from Euro1.49bn. The company noted its ‘sustained performance and stronger cash flow generation’ throughout the year, with growing demand in the US and Southeastern Europe and the beginning of growth in Greece, in spite of a 7.0% year-on-year fall in cement volumes to 17.0Mt from 18.2Mt in 2018. Challenging conditions in Egypt and Turkey caused the group’s performance to deteriorate.

Titan Cement said that it is ‘on track to meet the Group’s 2020 sustainability targets and has already met ‘all targets related to emissions and water consumption.’
It acknowledged inevitable ‘short-term impacts’ of coronavirus, including reduced sales volumes ‘particularly and more severely in the second quarter of 2020,’ and has strengthened its liquidity position to Euro400m.