Displaying items by tag: Grupo Argos

Colombia: Cementos Argos owner Grupo Argos has announced a raft of cuts to investments and expenses worth a total of US$245m in response to the impacts of Covid-19. Noticias Financieras News has reported that US$61.2m of the cuts will be to planned investments in expansion projects and raw materials inventory restocking, including to some in the cement business. Group Argos President Jorge Mario Velasquez said that the measures would, “give additional currency for the different sources, cash and funding that the organization has access to and give us relative peace of mind in our cash structure.”

Grupo Argos said it would stick to its US$3.67bn five-year investment plan.

Honduras: Colombia-based Grupo Argos energy subsidiary Celsia has announced that it has installed a 10.6MW solar power plant at Cementos Argos’ 1.0Mt/yr integrated Piedras Azules cement plant in Comayagua. Renewables Now News has reported that the 32,000-panel plant on the roof of the Piedras Azules plant will generate 20% of its operating power needs. Celsia says that the solar plant, its first in Honduras, will reduce Cementos Argos’ annual CO2 emissions by 10,000t/yr.

Colombia: Argos, the cement company of Grupo Argos, reported a 10.6% increase in revenue during the first half of 2019, driven mainly by higher cement volumes in the US and the start of price recovery in Colombia. Its consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 4%.

The company earned US$1.42m in revenue, with a net profit of US$22m, 33.5% higher than in the first half of 2018. Its EBITDA in the US was US$262.4m. Cement shipments were close to 8Mt, 1.2% higher than in the first half of 2018, and concrete dispatches were 5Mm3, a decrease of 2.5% due to the impact of heavy rains in some regions of the US.

“In the first half of 2019 we continued to strengthen our operation and our presence in the United States with the execution of the BEST 2.0 efficiency plan, which, added to the best price dynamics that we began to see in Colombia, allowed us to compensate the pressure we experienced in energy costs,” said Juan Esteban Calle, CEO of Argos. “The significant progress of our divestment plan in non-strategic assets allows us to continue focusing on improving the competitiveness of the company and innovating in products, services and solutions to support the growth of our customers.”

In the US Argos earned revenues of US$781m, 3.5% higher than in the first half of 2018. Its US EBITDA was stable year-on-year at US$108m. Cement dispatches in the US increased by 6.9% to exceed 3Mt, but concrete dispatches decreased by 3.8%, mainly due to heavy rains in the south-central region. The profit in the US was US$11m.

In Colombia revenues during the first half of 2019 were US$352m, 3.3% higher than in the first half of 2018. EBITDA was US$72m, 4% lower year-on-year. Cement dispatches totaled 2.4Mt, a 2.5% reduction. On the other hand, concrete sales remained stable at 1.4Mm3. The company reported that its Argos ONE digital platform continued to give ‘great’ results. From January 2019 to July 2019, 63% of cement and 44% of concrete dispatches were made through this digital platform.

In the Caribbean and Central America, the company highlighted that operations in the Dominican Republic and Haiti continued to be positive, compensating for the challenging political environment that was evident during the period in Honduras and Panama.

In this region, revenues stood at US$286m, a 4.5% reduction year-on-year. EBITDA in this region came to US$79m dollars, 19.8% lower year-on-year. Cement dispatches were 2.5Mt and concrete dispatches were 194,000m3, 1.5% and 3% lower respectively year-on-year.

US: Colombia’s Grupo Argos is in talks with US-based Summit Materials about a potential merger. Sources quoted by Reuters said that the Colombian company would like to combine Cementos Argos with Summit Materials to gain economies of scale.

Summit Materials owns Continental Cement, a cement producer that runs two integrated cement plants at Hannibal, Missouri and Davenport, Iowa. It operates cement terminals at Minneapolis in Minnesota, St Paul in Minnesota, LaCrosse in Wisconsin, Bettendorf in Iowa, West Des Moines in Iowa, St Louis in Missouri, Memphis in Tennessee, Convent in Louisiana and New Orleans in Louisiana. Summit Materials also owns a number of building material companies in the aggregates, ready-mixed concrete and asphalt industries.

Colombia: Grupo Argos and Mexico’s Grupo Calidra have inaugurated a new US$40m lime plant at Puerto Triunfo, Antioquia. The unit has a production capacity of 90,000t/yr, according to the El Colombiano newspaper. The plant is the only one in Colombia capable of producing pulverized limestone. Grupo Argos and Grupo Calidra will operate the plant under a joint venture named Caltek. The new plant is expected to create 100 jobs.