Jose Magrina, chief executive officer of Egypt’s cement firm Arabian Cement Co. (ACC) said his company will likely see a remarkable rise in the year 2015 backed by the government efforts to proceed with economic development coupled with improved political and economic stability.
Speaking exclusively to Mubasher, the top official expected state spending on infrastructure projects to continue, especially amid backing by GCC states. He also highlighted signs of recovery in the investment arena.
The company is set to finalized a plan to shift energy usage in its facilities to alternative resources, which will likely bolster the company’s performance over the coming period, Magrina stated.
He indicated that ACC currently secures its energy needs at 20-25% from natural gas and 10% from solid wastes, in addition to the usage of coal for the remaining portion of energy requirements.
The company is seeking to distribute its energy resources over the coming year at 30% from solid waste and 70% from coal, said the CEO.
Magrina also reiterated confidence in the Egyptian market, saying it has strong growth potential amid positive developments.
The company’s consolidated financial results for the nine-month period that ended on September 30, 2014 had shown that net profit fell 35% to EGP 201.8 million, compared with EGP 309.7 million in the year-ago period.
The nine-month revenues stood at nearly EGP 1788.5 million, with 17% rise year-over-year from EGP 1532.1 million.
Commenting on the results, the top official said his company posted positive results despite the challenges that included the fuel shortage and the expiry of tax exemption, in addition to the one-off gains recorded in the same period a year earlier.
The company is seeking to expand its operations locally, regionally and globally, Magrina said, adding that it completed preparations for the execution of a new project in the first quarter of 2015 in Brazil.
ACC had announced earlier in November entering into a joint venture in Brazil with Cementos Relampago, an affiliate of Cementos La Union, at a total value of 23 million euros.
The JV will build a cement grinding facility in Northwest Brazil with a total capacity of 230,000 tons per year, the company said in a statement to the stock market. 50% of the project financing will be secured from bank loans, while the other 50% will represent the paid-in capital in which ACC will contribute 7 million euros, or 60%.