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Kohat sees 8% increase in domestic cement sales

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World Cement,

Kohat Cement has reported an 8% increase in domestic sales of cement in 4Q16 on the back of infrastructure development in Pakistan. The country has seen huge investment in a range of projects as part of the China Pakistan Economic Corridor.

Both clinker and cement production were up in response to the growing demand. Clinker production rose 2.9% to 0.49 million t in 4Q16, while cement production was up 5.7% at 0.58 million t. Meanwhile, exports were 13% down as production was diverted to meet domestic demand.

Overall, sales for the quarter were up 1.4% at just under 0.6 million t.

The increase in sales also boosted the company’s bottom line with post-tax profits up 3.6% at PKR1.198 billion (US$11.4 million). Profits were also boosted by a reduction in production costs, following the installation of a waste heat recovery power plant. This has reduced electricity costs – a primary constituent of cement production costs.

For the half year to December 2016, the company reported domestic sales up 5.4% at 1.0 million t. Clinker production was up 2.8% and cement production was up 1.2%. Export sales were down 28.8%.

Revenues for the six-month period was up 4% at PKR2.190 billion (US$20.9 million).

The company was also positive on the future outlook, noting that continued infrastructure spending associated with the China Pakistan Economic Corridor, as well as the Pakistan government’s Public Sector Development Programme and private investment, would see a “robust increase in profits of the company.”

The company is also expecting a new cement mill with a capacity of 105 tph is expected to be operational in December of this year.

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Pakistan cement news