Displaying items by tag: Egypt
Egypt: Arabian Cement plans to use alternative energy to increase its capacity to 100%, according to company CEO Jose Maria Magrina. The company is currently running at approximately 80% of its installed production capacity, with around 70% of the energy it uses being coal. In the meantime, 10% of its energy is reliant on alternative energy such as waste and biomass.
Arabian Cement is currently working on the completion of another installation that would enable the use of waste as alternative fuel, thus allowing its production capacity to reach 100%. The conversion will be completed within four weeks. "We can increase production the moment we finish our complete conversion to alternative fuels," said Magrina.
Suez Cement reports 11.5% gain in EBITDA for quarter four of 2014
27 February 2015Egypt: For the fourth quarter of 2014, Suez Cement reported a 2.5% year-on-year increase in revenues and 11.5% year-on-year growth in earnings before interest, tax and depreciation (EBITDA). Its net profit after non-controlling interests increased by 15.2% during the quarter.
For the entirety of 2014, Suez Cement's sales increased by 22%, while recurring EBITDA improved by 8.8% compared to 2013. However, higher corporate income taxes coupled with an absence of foreign exchange gains were responsible for an 8.4% drop in net profit after non-controlling interests. EBITDA gains were also driven by Suez Cement's downstream activities in transportation and ready-mix cements, as well as its paper bags subsidiary, which saw an EBITA increase of 26.5%. Cement activities accounted for a gain of 6.3%.
The strong revenue performance was largely due to cement price increases due to an unprecedented surge in production costs and product shortages. Overall, clinker production decreased as a result of severe energy supply issues that impacted each of Suez Cement's plants and subsidiaries differently. The Tourah plant felt the greatest pressure from expensive clinker imports that were necessary to satisfy Egypt's growing demand.
Suez Cement was also negatively affected by energy costs (gas, mazut and electricity) that rose by 25 - 35% in 2014. It did not let the economic pressures, including a 40% drop in industrial production capacity, impact its employment rates or benefits packages. This was partially due to Suez Cement's commitment to the implementation of energy-efficient processes throughout the five plants, as well as further emphasis and utilisation of alternative fuels, which helped mitigate the drop in production as well as limit the impact from growing clinker imports. Suez Cement will go ahead with the deployment of coal power at all five plants over the next two years, a factor that is also expected to put a stop to some importing activities.
Suez Cement believes that the construction industry's recovery will continue to attract new investment. This is in addition to positive economic growth thanks to Egypt's new-found government stability and the future implementation of several large national projects. However, power cuts and fuel shortages are likely to remain major issues for cement producers. Fuel and energy shortages will also prolong challenges to meeting cement production targets.
The recent closure of the Tourah I plant is one example of Suez Cement's continued commitment to reducing its environmental impact. The company remains focused on investing in energy-efficient initiatives and environmentally-sound programs. This includes developing alternative fuel strategies that incorporate waste-derived fuels and coal, which will shift the company's energy mix and improve its production capabilities by reducing dependence on natural gas and mazut.
Egypt signs six new oil and gas exploration deals
14 January 2015Egypt: Egyptian minister of Petroleum and Mineral Resources Sherif Ismail has signed six new oil and gas exploration contracts worth hundreds of millions of dollars with foreign and Egyptian companies, according to local media.
Petroleum minister Eng. Ismail signed the agreements with Netherland's Shell, Italy's Eni, the UK's British Petroleum, Canada's TransGlobe, Egypt's Tharwa and the Egyptian General Petroleum Corporation.
The signed deals are worth US$272m in investments, in addition to US$124m worth of grants that were allocated to drilling 41 wells. The government is keen to develop untapped finds to reduce its reliance on imports, but has struggled to persuade companies to invest in the biggest finds, which are offshore, because the amount it pays them barely covers the investment costs.
Suez Cement to convert two cement plants to run on coal
02 January 2015Egypt: Suez Cement plans to spend US$84m in 2015 to convert its Helwan and Tora 2 cement plants to use coal. The move is a response to Egypt's on-going energy crisis.
The company reported a 40.5% rise year-on-year in third-quarter profit in November 2014 after it managed to pass on higher production costs to consumers. However, its nine month profit fell by 14.6% year-on-year due to severe energy shortages that forced the company to cut output by 40% so far in 2014. Suez Cement was one of the companies affected when the government cut natural gas supplies to factories in January 2014 and has had to import clinker at higher cost.