Cement News tagged under: South Africa
South Africa: PPC sets terms for its US$280m rights issue12 September 2016, Published under Cement NewsPPC has set terms for its ZAR4bn (US$280m) rights issue after the deal was almost unanimously approved by shareholders at the start of August. The rights issue has been talked about by the company since December 2015. Yet it has become all the more urgent and complex since S&P downgraded the company’s credit rating from A to BB- in May. “That triggered the need for the capital increase,” a banker on the deal said. PPC is offering 1bn new shares at ZAR4/share, a discount of 55.5 per c... |
PPC increase revenue and volumes in 3QFY15-1606 September 2016, Published under Cement NewsPPC reported a nine per cent YoY rise in quarterly sales revenue, commenting that sales revenue in South Africa increased two per cent and volumes by at least nine per cent in the company's 3QFY15-16. However, revenue outside of South Africa was even stronger, growing 19 per cent as a result of significant volume growth, newly commissioned plants in Rwanda and gains made through currency translations. CEO of PPC, Daryll Castle said, “the group's revenue has improved by six per cent suppor... |
South Africa: AfriSam sees market potential for slag cements15 August 2016, Published under Cement NewsMike McDonald, manager of AfriSam’s Centre of Product Excellence, says that he expects demand for better-performing cements with a low clinker content to grow in South Africa. This is considering the proposed introduction of a carbon tax in South Africa commencing in 2017, and the 'green' building and infrastructure movements that have brought a heightened awareness of the embodied energy and carbon of building materials. AfriSam’s Centre of Product Excellence has itself developed a s... |
PPC Zimbabwe plant project on track03 August 2016, Published under Cement NewsAccording to CEO, Darryll Castle, the construction of PPC’s new plant in Zimbabwe remains on track for completion in 2016, despite riots in the country and restrictions remaining on some South African goods. The new mill, with an expected capacity of 0.7Mta, is crucial to reducing the company’s costs, Mr Castle said. "Even if the volume is not required because Zimbabwe’s economy slows, the project still makes sense from a cost-optimisation process." This project in Zimbabwe is one of four... |
PPC29 June 2016, Published under Cement NewsIn the six months ended 31 March, 2016, PPC saw its group revenue dip by one per cent to ZAR4.5bn (US$294.01m). Group EBITDA was up by two per cent to ZAR1.1bn with an EBITDA margin of 25.4 per cent, mainly due to improved efficiencies and cost savings as part of the company’s Profit Improvement Programme. The programme, which aims to deliver ZAR400m by 2017, generated ZAR178m in the six months in question, taking the running total to ZAR390m. According to the company, this has mainly been a... |
South Africa: PPC lines up banks for rights issue28 June 2016, Published under Cement NewsSouth African’s largest producer, PPC, has announced that it has come to an agreement with four banks to underwrite its proposed ZAR4bn (US$260m) rights issue, Reuters Africa reports. The Standard Bank of South Africa Limited, Nedbank Limited, Absa Bank Limited and FirstRand Bank have been appointed to oversee the offer process, with Standard Bank also taking the role of global co-ordinator. An extraordinary general meeting is expected to be convened on or around 27 July 2016 to approv... |
PPC planning for the long term17 June 2016, Published under Cement NewsSouth Africa's cement market expanded 7.7 per cent in 2015, but a more competitive environment including new entrants and imports has placed pressure on incumbents, not least the market leader PPC. The company is now facing short-term funding issues as it seeks to execute new projects in Ethiopia, DR Congo and Zimbabwe, but in the long term a more diversified portfolio will strengthen the company. Updating shareholders this week, PPC reported that operating profits fell by three per cent ... |
PPC sees six-month revenues and volumes flat14 June 2016, Published under Cement NewsIn its trading figures for the six months to 31 March 2016, PPC saw its operating profits fall by three per cent to ZAR733m (US$48m). Revenues were flat at ZAR4501m (US$294m), down one per cent on the same period in 2015. Likewise, volume sales were down one per cent overall, although in South Africa volumes rose by one per cent. Despite higher volumes, revenues in South Africa fell due to lower prices, while in the rest of Africa revenues rose by six per cent to ZAR1367m (US$89m). This f... |
South Africa: PPC shares drop24 May 2016, Published under Cement NewsPPC Ltd shares plunged after it said talks with a credit ratings agency will probably lead to a downgrade. The company is preparing a capital raising of ZAR4bn (US$254m) to be used to reduce debt and fund expansion plans, PPC said in a statement. It said shareholders will be advised on the credit agency’s final decision when it has the information. PPC stock declined 18 per cent, its largest drop on record, to ZAR11.25 on Monday. Company shares are down 27 per cent for the year. To co... |
PPC29 April 2016, Published under Cement NewsAccording to PPC, cement consumption in South Africa reached 13Mt in 2015, up 7.7 per cent on the previous year. The growth is attributed to strong demand from the construction sector, particularly projects involving new power stations and hydroelectric plants. The opening quarter of the year saw the fastest sales growth YoY with 15.6 per cent. The second quarter was far more subdued with 1.5 per cent but was followed by more than seven per cent expansion in the last two quarters of the year... |