CHP shares full year 2020 results

CEMEX Holdings Philippines has announced that its consolidated net sales decreased by 16% in 2020, reaching around PHP 19.7 billion, versus the comparable period in 2019.

CHP’s domestic cement volumes in 2020 decreased by 11% year-over-year due to the COVID-19 pandemic. For the fourth quarter, its domestic cement volumes declined by 9% year-over-year due to adverse weather conditions, amidst the ongoing pandemic.

CHP’s domestic cement prices in 2020 were 6% lower year-over-year. The movement in CHP’s composite price was driven by a higher proportion of pick-up sales, lower demand, and competitive market dynamics.

CHP’s Operating EBITDA for 2020 reached PHP 4.2 billion, a decrease of 1% versus 2019, and its Operating EBITDA margin was at 21% for 2020. Lower volumes and prices were partially offset by lower costs and efforts to contain expenses.

Net income for CHP was at PHP 985 million for 2020, versus around PHP 1.3 billion in 2019, due to the negative impact of the COVID-19 pandemic on operating earnings.

Ignacio Mijares, President and CEO of CHP, said: “Our results in 2020 were made possible by the effort and dedication of our employees, despite the unexpectedly challenging and extraordinary year. We remain cautious on the road ahead as headwinds and uncertainty remain. Nevertheless, we will continue to build on our learnings from 2020 to capture the opportunities around us.”

The company’s Solid Cement plant expansion project reached a milestone in January 2021 with the lifting of the new kiln into position. This rotary kiln is part of Solid Cement’s new cement line, which, upon completion, will add 1.5 million tons of annual cement capacity. CHP expects the construction of the new line to be completed in December 2021.

As of 31 December 2020 CHP’s total debt was at PHP 12 853 million, a decrease of around PHP 7.2 billion from 31 December 2019. The lower debt level is mainly a result of the repayment of respective debts owed by Solid Cement Corporation and APO Cement Corporation to CEMEX ASIA, B.V. using a portion of the proceeds raised from CHP’s Stock Rights Offering during the first quarter of 2020.

Read the article online at: https://www.worldcement.com/asia-pacific-rim/01032021/chp-shares-full-year-2020-results/