CEMEX achieves investment-grade capital structure and accelerates growth strategy
Published by Emily Thomas,
Deputy Editor
World Cement,
CEMEX has announced during an open dialogue with top management, that it is executing its strategic objectives under its Operation Resilience programme faster than previously anticipated, as a result of decisive management decisions combined with solid market performance.
The company is confident that it will achieve an investment-grade capital structure of 3 times leverage by the end of this month. As a result of all of the above, CEMEX has now established a new leverage target within its Operation Resilience goals that consists of regaining an investment-grade credit rating. Due to the significant year-over-year growth over the past three quarters, coupled with a favourable medium-term outlook, CEMEX is raising its 2021 EBITDA guidance to US$3.1 billion, a 26% increase from the prior year, and now expects double-digit EBITDA growth in 2022.
The company expects to generate approximately US$400 million of annual EBITDA in 2023 from its bolt-on investments, its margin enhancement projects, as well as its 10 million metric tons of new cement capacity. These new additions, which are expected to be completed by 2023, include 5 million metric tons of cement capacity in Mexico; 1 million in Europe; 2.3 million in South, Central America and the Caribbean region; and 1.5 million in the Philippines. These additions will be structured to take into consideration the company´s climate action priority.
“I am pleased to announce that CEMEX is reaching its long-standing goal of an investment-grade capital structure by the end of this month” said Fernando A. Gonzalez, CEMEX CEO. “We believe that we currently have the best market outlook in years, and that we are entering a period of sustainable growth. We can turn the page on what has been a lengthy chapter for CEMEX and open a new book where we consolidate our recent achievements and shift our strategic balance a bit more towards growth.”
Read the article online at: https://www.worldcement.com/europe-cis/25062021/cemex-achieves-investment-grade-capital-structure-and-accelerates-growth-strategy/
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