Caribbean Cement Co swings to first-half profit, Jamaica

Caribbean Cement Co Ltd (CCCL) reported a consolidated profit of JMD869.3m (US$7.42m) for the first six months of 2015, compared to a loss of JMD53.2m in the corresponding period of 2014 – an improvement of JMD922m.

The TCL group company said revenue during the first half of this year rose by four per cent (or JMD276m) over the period, mainly driven by improved domestic sales volumes and increased clinker exports which compensated for the decline in cement exports.

EBITDA increased by JMD849m to JMD1152m over 2014 mainly due to increased revenue, lower energy costs, a reduction in fixed costs and an improvement in operational efficiencies.

Local cement sales edged ahead by 2.3 per cent YoY to 316,461t (versus 309,364t in 1H14). Cement exports were down to 79,293t (133,028t), while clinker exports rose to 105,372t (63,260t).

CCCL is Jamaica’s sole cement producer. It integrated plant, situated in Rockfort, Kingston, has a cement and clinker capacity of 2Mta and 1.3Mta, respectively.

On its outlook, CCCL said the small increases in local cement sales volumes realised in the period under review are expected to continue for the remainder of the year. Lower oil prices have had a significant impact on electricity and fuel prices, and this is expected to create more disposable income in the market, which should in turn result in greater demand, the company noted.  The tight fiscal policy stance which the Government continues to employ, in accordance with its present agreements with the multinational agencies, is expected to result in modest growth in the economy, it adds.