Pakistan: Kohat half-year profit up 54%

Kohat Cement Company Ltd’s profit climbed 54 per cent to PKR2.10bn (US$20m) in the half-year ended 31 December  2015 on increased sales and other income as well as decreased finance cost and energy prices, analysts said. The cement manufacturer reported a profit of PKR1.36bn in the same period a year earlier.

“Decreases in energy prices coupled with increased sales volume are the primary reasons for the improved gross and net margins during the quarter under review,” said Khurram Shehzad, the company’s secretary.

The company’s second-quarter profit rose 69.23 per cent. Kohat Cement dispatched 1.03Mt of cement during the six-month period under review, showing an increase of 19.50 per cent over the same period of the last year, Shehzad said.

Commenting on the near-term outlook Shehzad was confident of domestic cement sales holding up. “Growth in domestic cement demand is expected to remain healthy, while exports shall remain under pressure,” he said.

In the half-year period, cement dispatches were 18.22Mt (local 15.20Mt and exports 3.02Mt), up 6.38 per cent over the corresponding period of the last year.

Shahzad said the company’s 15MW waste heat recovery power plant will soon become operational. At present, the plant is at the commissioning stage.

The company’s net sales rose 20 per cent to PKR7.05bn in the six months from PKR5.90bn in the same period last year.