SCGC records Q4 revenues boost of almost 27% last year
Q4 2013 results at a glance
CONSOLIDATED REVENUES: 1,501 MILLION EGP (1,187 MILLION EGP in Q4 2012).
RECURRING EBITDA: 269 MILLION EGP (242 MILLION EGP in Q4 2012).
NET PROFIT AFTER NON-CONTROLLING INTEREST: 112 MILLION EGP (126 MILLION EGP in Q4 2012).
Consolidated Jan-Dec 2013 results
CONSOLIDATED REVENUES: 5,049 MILLION EGP (4,597 MILLION EGP in 2012).
RECURRING EBITDA: 1,061 MILLION EGP (1,051 MILLION EGP in 2012).
NET PROFIT AFTER NON-CONTROLLING INTEREST: 538 MILLION EGP (524 MILLION EGP in 2012).
Cairo, March 11 2014. Today, the Board of Directors for Suez Cement Group of Companies (SCGC) approved the company's consolidated financial report detailing operations between January and December 2013.
SCGC reported an increase in revenues of 26.5% in Q4 2013 versus the same period last year. Earnings before interest, tax and depreciation (EBITDA) also increased, jumping 11% mainly due to higher cement prices. Meanwhile, net profits dropped 11% due to depressed revenues throughout Q4.
In 2013, demand for grey cement in Egypt fell 2% amid ongoing power shortages and a sharp jump in fuel prices. This resulted in lower cement production and higher operations costs for the company, which were reflected in sales prices.
For the year, SCGC recorded consolidated revenues worth 5,049 million EGP compared to 4,597 million in 2012. Its recurring EBITDA totaled 1,061 million EGP, representing a slight increase of 1% compared to the year before thanks to company-wide efforts to control costs and preserve jobs.
SCGC 2014 outlook
There is still a great deal of uncertainty in terms of market demand so far in 2014. Sectors across the board have been affected by the country's recent political upheaval as well as fuel and power shortages. However, SCGC believes the construction industry's burgeoning recovery will attract new investment. A return to political stability will also impact Egyptian demand for cement positively.
Power cuts and fuel shortages are likely to remain major issues for cement producers. However, SCGC is committed to focusing its efforts and investment on industrial and environmental efficiency. As of now, capacity expansion projects are on hold. Meanwhile, SCGC has invested heavily in the development of alternative fuel strategies including coal, biogas and refused-derived fuels as it waits for government approval. Implementation of these strategies is expected in 2014 as part of efforts to reduce SCGC's dependency on gas and mazut.