Cimpor has released its results for full-year 2013. The company’s turnover improved by 26% y/y, while total cement sales volumes increased by 19% y/y to reach 28.4 million t. Cimpor achieved an EBITDA of €692 million, a new record. This figure is 46% higher than that recorded in 2012. Highlights from Cimpor’s regional operations are provided below.
Construction and infrastructure activity in Portugal continued to suffer the fall out from the economic crisis. Cimpor’s domestic cement and concrete sales fell by 24% y/y and 15.5% y/y, respectively, in line with declining demand in the country. However, cement and clinker exports were up 75% compared to 2012. The majority of exports were destined for Africa and South America.
EBITDA came in at 59% lower than in 2012. The decline has been attributed to the drop in domestic cement sales volumes and a decrease in revenue resulting from the sale of CO2 allowances compared to 2012.
A decline in cement consumption in 2013 meant that Cimpor’s cement sales suffered a 7% y/y drop, coming in at 176 000 t. Likewise, concrete and aggregates sales volumes contracted by more than 60% y/y. Higher cement prices and optimised transport logistics between islands helped to mitigate the decrease in volumes, with EBITDA increasing by 4% y/y.
Cimpor continued to integrate InterCement operations in 2013. This has doubled its number of production units and increased its installed cement production capacity in the country to 17.9 million t. As a result, Cimpor is now the second biggest producer in the Brazilian market, finishing 2013 with an estimated 18% market share.
The company’s principle investments included a new production line at Cezarina, a new plant at Caxitu, a cable car lift at Apaí and completing the Cubatão milling project.
Cement sales reached 12.5 million t in 2013. Concrete and aggregates volumes also improved, rising to 2.8 million m3 and 2.4 million t, respectively.
Cimpor managed to somewhat offset higher fuel and raw material costs by increasing its co-processing rate.
Cimpor began operating in the Argentine market through the asset transfer with InterCement. It now operates six cement plants and two grinding facilities in the country, with a total installed capacity of 8.5 million t, as well as concrete, aggregates and rail transport businesses. Concrete sales were up by 7.2% y/y in 2013 and the volumes transported by rail increased by 10.4% compared to 2012. Cimpor’s Argentine subsidiary, Loma Negra, sold 6.4 million t of cement in 2013 and achieved a 46.1% market share.
Yguazu Cement’s sales volumes grew by 30% y/y to 0.3 million t. In 2013, Cimpor invested €37.6 million in a project to transform the Yguazu grinding plant to a complete cement production plant. Start-up of the complete plant is due to take place this year.
Cimpor’s subsidiary, Amreyah, experienced a 2.8% rise in sales volumes compared to the previous year. In total, 3.2 million t of cement was sold. However, EBITDA fell by 6% y/y in 2013, impacted by factors such as rising fuel costs and the depreciation of the Egyptian pound against the euro.
Cement sales improved by 9.8% y/y in 2013, rising to 1.3 million t. The increase was aided by the operational start-up of two mills in the country and an aggressive commercial policy to improve competitiveness against imports. However, this volume growth was negatively offset by operational performance issues and an irregular supply of limestone. EBITDA contracted by 9% y/y. Approximately €24.5 million was invested in the company’s operations in Mozambique in 2013. This included the installation of a new cement mill at its Dondo site.
The company sold 1.3 million t of cement in South Africa in 2013, 19.8% higher than in 2012. EBITDA fell by 25% y/y. This decline has been attributed to rising production costs, a steep hike in electricity prices and a negative currency impact.
The full 2013 report can be found here.
Adapted from report by Louise Fordham
Read the article online at: https://www.worldcement.com/europe-cis/05032014/cimpor_2013_results_852/