Reuters are reporting that East African Portland Cement is expecting its profit to fall by more than 25% in the financial year ending 30 June citing year-earlier gains on land sales.
"The unrealised fair value gain on investment property and the gain on disposal of land will not recur this financial year," Portland commented in a statement.
The company's pre-tax loss increased to US$7.33 million in the first half on higher finance costs and foreign exchange losses.
East African Portland Cement recently announced that demand for cement was expected to remain strong due to numerous, ongoing infrastructure projects, but cautioned that an oversupply in the local market would weigh on prices in the short to medium term.
Portland has said that in response it plans to control costs and expected a technical support agreement it has entered into with Lafarge Holcim to boost its operations.
New research by GlobalData’s MEED has shown that the commercial value of construction contracts issued in the Gulf Cooperation Council (GCC) fell by more than 50% in the first eight months of 2020 compared to the same period in 2019.