Suez Cement hit by Egyptian pound devaluation

In its quarterly earnings statement for 1Q2016, Suez Cement announced that it has seen cement volumes rise 15.6 per cent YoY. However, net profits for the quarter have fallen to just EGP2m (US$0.2m), down from EGP58m a year earlier.

Suez’s revenues were 14.5 per cent higher at EGP1606m, but EBITDA was down 12.5 per cent at EGP140m.

Cement demand was driven by both infrastructure projects, and small and mid-sized private sector initiatives. Better energy availability allowed the company to increase clinker production by 12.3 per cent and bring capacity utilisation rates to around 80 per cent.

However, earnings were negatively impacted by the devaluation of the Egyptian pound and lower sales prices.

Looking ahead, Suez warned of continued economic uncertainty in Egypt. The company pledged to push ahead with its energy diversification programme that has seen some of its plants switch over to coal- and petcoke-firing.