Semapa 1H14 cement turnover up 5.3 per cent YoY

Semapa, the Portuguese holding company that controls cement maker Secil, said turnover from its cement business operating rose 5.3 per cent YoY to EUR217.3m, driven mainly by increased exports from its home market of Portugal.

In its domestic market of Portugal, Secil recorded a turnover of EUR91.2m, up 11 per cent YoY. Export revenue increased by 20.6 per cent YoY and accounted for 68.2 per cent of total sales volumes. Overall, domestic sales volumes were down 1.5 per cent YoY. However, latest data from the Portuguese Construction and Public Works Industry Federation shows a slight improvement in the residential and civil engineering works segments over the first four months of the year but planning permits for new homes and refurbishment remained in decline.

Despite an uncertain economic environment and social unrest, Tunisian cement consumption increased by 7.7 per cent during the first half of the year. Secil’s combined turnover in the North African country rose by 8.8 per cent to EUR39.2m. The cement unit recorded revenue of EUR35.2m, up 10.8 per cent YoY thanks to domestic and export sales. Prices have been deregulated in the market as of early January with a “with a highly positive impact on this unit's turnover,” offsetting a 4.1 per cent decline in sales volumes, the company stated. Social and industrial unrest disrupted mill operations for more than a fortnight. The closure of the border with Libya over several periods muted export sales in the first quarter, particularly during March. However, exports over the first half grew strongly, resulting in a 43 per cent increase in turnover.

Turnover in Lebanon stood at approximately EUR45.2m, a marginal increase of one per cent compared to 1H13. The economy there has been impacted by the current situation in Syria. Cement consumption is expected to hold steady at the previous year’s level.

In Angola, the construction sector should continue grow strongly, supported by investment in the energy
sector, as well as large-scale government housing projects and the refurbishment of roads, bridges, silos and railways, all having a direct positive impact on cement consumption. While the Secil Group's operations in Angola saw cement sales hold steady, 1H14 turnover declined by 15.3 per cent to EUR9.8m essentially due to lower average selling prices which were affected by heightened competition and increased imports. Significantly, new legistlation introduced in the second half restricting imports has since led to a reduction in such volumes arriving into the local market.

In Brazil, the cement market recorded YoY growth of one per cent for the country as a whole and 0.5 per cent in where Semapa's local subsidiary the Supremo Group operates.  Total Supremo Group operations generated turnover of EUR26.7m, representing an increase of around 21 per cent in local currency terms and two per cent in euros due to the falling value of the Brazilian real over the period.