Suez Cement six-month net profit ahead, Egypt

Suez Cement has reported a 34 per cent increase in first-half net profit thanks to cost reduction and efficiency improvement efforts.

In the second quarter of 2013, net sales of Suez Cement Group of Companies reached EGP1302m (US$, up 11 per cent YoY while recurring EBITDA rose 18 per cent YoY to EGP315m. Net profit increased to EGP168m.

Grey cement sales were down by four per cent to “close to 26Mt”, the company said. The industry suffered from continuing energy shortages and steep energy price increases which led to lower production and higher operating costs which were reflected in Suez’s cement price.

Suez Cement remains uncertain on the outlook for the second half of the year as caution prevails over recent political events. The company said it looks forward to the progressive resumption of public and private construction investment once a more stable political situation emerges.

The energy situation is expected to remain clouded by growing supply shortage and is likely to affect cement production. In this context, Suez Cement said it will continue focussing its efforts and investments on industrial and environmental efficiency improvements, while keeping on hold any capacity expansion projects.