Wednesday , August 4 2021

Expectations of improvement in the cement sector in the last quarter of 2018

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The fourth quarter performance of the cement sector is expected to increase slightly due to a 9.2% increase in the average selling price, which currently approaches LE 938 per tonne, but a weak performance is expected to continue for the next three or four quarters, the gap between supply and demand of 31 million tons.

He added that cement producers' profit margins generally decreased as a result of an increase in cash costs of 50 to 70 pounds per tonne in the third quarter, after a step to increase last support, while average selling prices dropped 2.8% quarterly, despite a 10 increase, 9% year-on-year.

The report added that Semen Arab's revenue in the third quarter reached LE 808 million, up 20% year-on-year and 11% quarter behind volume recovery, while gross margin fell to 7.3% in the third quarter 2018 compared to 15.3% in third quarter 2017, and 16.2% in the second quarter of 2018. Net profit decreased 98% every year and 96% quarter to 2 million pounds. The impact of the company's export movements is expected to decline. Cash costs per ton exceed the export price (32-34 dollars per ton) Trading shares for 2019 at 4.2 times as profit multipliers and 3.4 times as the company's value for earning profit before interest, taxes and depreciation. Loss, and $ 34 as the value set for each ton.

Misr Beni Suef Cement reached 385 million EGP revenues, up 8% year on year and 14% lower year by year, due to lower volume. Total profit margin fell to 0.8% compared to 19.3% in the second quarter of 2018 and 1.6% in the third quarter. While net interest income saved the company's net profit after reaching LE 22 million, up 128% year-on-year and 75% down quarterly, net money reached LE 1,053 million (EGP 14.0 / share) Share 2019 is 6.0 times as a profit multiplier, 0.8 times as the value set for profit before interest, tax, depreciation and amortization, and 7 dollars as N. EV

The report added that Misr Cement Qena posted LE 811 million revenue in the third quarter, increasing 21% annually and 26% quarterly due to volume recovery. Total profit margin decreased to 17.2% compared to 17.6% in the third quarter of 2017 And 24.0% in the third quarter of 2018. Net income of shareholders of the parent company reached LE 2 million, compared with a net loss of 12 million in the third quarter and a net profit of 28 million in the second quarter. The report predicts that debt services will reduce corporate performance in the future and that company shares for 2019 will trade 3.5 times as profit multipliers, 2.5 times as facility value before EBITDA, and $ 29 per plant.

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