Attock Cement seeks gypsum/laterite supplier

Attock Cement Pakistan Ltd (ACPL) has invited a tender for the bulk supply of gypsum and laterite in  2018-19. According to the company announcement, offers are invited for the supply of approximately 120,000t of gypsum and 120,000t of laterite between July 2018-June 2019 at its cement plant located at Hub Chowki, Lasbela, Balochistan. Bids are due on 21 June 2018.
 
Sales review 9MFY18
In the first nine months of the 2017-18 financial year, the company's overall cement dispatches of company increased by 122,095t, up by eight per cent, as compared to same period last year, mainly due to an increase in local sales which increased by 15 per cent as compared to same period last year.
 
The company has also initiated an aggressive search in export markets for both cement and clinker and as a result of these efforts, it won a contract of 150,000t of clinker in the west African and Kenya markets. The first shipment left Pakistan International Bulk Terminal in the second week of April 2018.

The net sales revenue for the first nine months of the current year improved by INR900m (US$7.78m) up by eight per cent due to higher local dispatches and additional clinker exports made during the period.

Accordingly, the company recorded a net profit after tax of INR1827m, lower by INR411m (18 per cent) as compared to same period last year.
 
Cement grinding unit in Basra, Iraq
Major plant and equipment have arrived on site at the cement plant under construction in Basra. Civil, mechanical and electrical jobs have commended. It is anticipated that plant would commence its operations during the first quarter of FY18-19.
 
Outlook
The much-awaited capacity expansions have now started to come online in the market of south and despite robust local demand, the signs of glut are visible. The ongoing political uncertainty, recent devaluation of rupee against US dollar and the expected increase in interest rates may reduce the demand in next 3-6 months until the elections are held and a new Pakistan government takes over.

Further strong coal prices, recent devaluation of the rupee and its overall impact on other input costs would affect the margins in the short- to medium term. To date additional capacity of around 2.4Mta has hit the market and further capacity of approximately 7.2 Mta is due to arrive in next 12 months. This has the potential to affect the sector's ability to adjust the prices and pass on the impact of higher input costs to the end users.