Pakistani financial institution and cement conglomerate the United Bank (UBL) and Lucky Cement Ltd announced that the bank will extend PKR8bn (SU$28.7m) to cement producers. Both organisations have yet to feed the material information on the Pakistan Stock Exchange (PSX) website, but both consents appeared in a public message on 25 June.
The stand-by letter of credit facility, a financial instrument commonly used in the core business or for project diversification, has been extended by UBL to Lucky Cement. While the purpose of this facility was not explicitly stated, it is likely to be utilised for strategic business operations or potential project ventures.
During the 9MFY23-24, Lucky Cement demonstrated its financial prowess, achieving a remarkable profit before tax of PKR27.8bn, a significant increase from the PKR15.7bn reported in the year-ago period. This impressive performance is further underscored by the after-tax profit of PKR18.6bn, compared to the PKR11.1bn reported in the 9MFY22-23.
The company has embarked on a 28.8MW captive wind power project at its Karachi plant, expected to be completed by 1QFY24-25. The solar capacities at the Karachi and Pezu plants are increasing by 6.3MW and 6MW, respectively and will be completed during the current financial year. This expansion will increase the company's solar capacity to 74.3MW.
