Climbing regional cement shipments for Argos in the 1H21

Argos announced its 1H21 results this week with regional cement shipments climbing in the USA and in the Caribbean and Latin America. 

In the USA cement volumes saw a solid increase of 5.7 per cent, because of the positive market dynamics in the country. Concrete volumes, on the other hand, fell 10.1 per cent with different behaviours throughout the territory and strongly affected by the intense rains, especially in Houston and Dallas. Group revenues in the US during the semester remained stable at US$736m. 

In Colombia revenues increased 37.7 per cent during the semester and stood at US$313.5m. Likewise, EBITDA increased 54.1 per cent and was US$69m. In the first six months of the year, cement shipments in the country increased 40.1 per cent and concrete rose 25.2 per cent, despite the impacts of the marches and roadblocks that had a great effect on operations in the southwestern part of the country where the Yumbo plant was closed for around 40 days. 

Lastly, the Caribbean and Central America region, recorded revenues for the 1H21 of US$272 m, a growth of 31.8  per cent. EBITDA, meanwhile, experienced an increase of 58.9 per cent at US$85m. 

In this region, the 45.1 per cent increase in cement shipments during the period was driven by the  dynamics of the Dominican Republic, Honduras and Puerto Rico, and the increase in exports from Cartagena to Houston. Likewise, concrete volumes increased 38 per cent in the first half of the year, mainly due to the low comparable base. 

Outlook
Prospects continue to be positive the Caribbean and Central American given its correlation with the US economy, the significant growth in remittances, as well as the arrival of funds for the reconstruction of Puerto Rico after Hurricanes Irma and Maria. Likewise, tourism construction activity, which is expected to resume its activities in the Dominican Republic soon, along with the success of the new operating model in Puerto Rico, support the favourable prospects for these two countries. Panama, for its part, is still affected, but it is beginning to show signs of economic recovery.