Arabian Cement Company reports first earnings announcement

Arabian Cement Company, Egypt, has reported its first earnings announcement since being listed on the stock exchange earlier this month. The company made net profit of US$16.3 million in the first quarter.

Egypt’s cement industry has been badly affected by natural gas shortages. Last year, Arabian Cement Company announced that its plant had installed the necessary equipment to utilise alternative fuels. At the time, ACC’s CEO Jose Maria Magrina stated: “Converting to alternative fuel on a national level will undoubtedly have a positive effect on the economy as a whole, although it poses many challenges to the industry. The investment needed to substitute natural gas or mazot with coal ranges from US$6 – 8 million/million tonnes, while converting to RDF costs around US$8 – 12 million/million tonnes. However, for private companies to be encouraged to commit to such a huge investment, the government should look into incentivising this initiative by putting together a solid policy that includes governmental support.”

The below video from Arabian Cement Company provides an outline of its plant and process.

Edited from various sources by Katherine Guenioui

Read the article online at: https://www.worldcement.com/africa-middle-east/23052014/arabian_cement_reports_1q14_profit_241/