Kohat Cement completes the buyback of 5m shares

Kohat Cement Co Ltd (KOHC) informed Pakistan Stock Exchange Ltd (PSX) on 3 August that in compliance with Regulation 10(g) of the listed companies (buy-back of shares) regulations, 2019, the company with this informs that Kohat Cement Co (the company) has completed the buy-back of its 5m ordinary shares in accordance with the approvals of the company's members given in its Extraordinary General Meeting of 21 February 2023. Accordingly, the purchase period for the buy-back is completed.

According to BMA Research (released recently), KOHC increased its capacity by 2.9Mta to 5.3Mta in FY19-20, which kept its capacity-based market share intact at eight per cent. Now the company is undergoing a greenfield expansion with a nameplate capacity of 3Mta at in Khushab, Punjab province. Reportedly, import-led restrictions in Pakistan have delayed the plant, which was initially slated to come online in FY23-24 but has now been delayed until FY25-26. KOHC has completed the plant site development and will start importing plant and machinery once import restrictions have eased.

In addition, KOHC has invested in a 10MW solar power plant that is expected to come online in late 2023. KOHC’s power mix comprises 30 per cent WHR and furnace oil. The remaining energy is sourced from the grid. However, with the commissioning of solar power plants, grid dependence will decrease from 70 to 63 per cent.