PAKISTAN: FED on cement likely to be reduced by Rs250 per ton

The federal government is likely to cut Federal Excise Duty (FED) on cement up to Rs. 250 per ton in the upcoming budget for fiscal year 2012-2013.

Sources in cement sector told Business Recorder on Saturday that the federal government was likely to announce some relief package for cement industry in the wake of rising energy cost and lower dispatches.

In last year’s budget, it was announced by the government that FED on cement sector would be phased out in three years. A reduction of Rs. 200 per metric ton was proposed in the last fiscal year budget and equal reduction of the balance of Rs 500 per metric ton in the next two budgets.

As per the proposal, the federal government cut excise duty by Rs 200 per ton in the budget for 2011-2012 to facilitate the domestic cement industry and presently, cement manufacturers are paying FED at rate of Rs 500 per ton.

“We are expecting another cut of Rs 250 per ton in on account of FED in next budget 2012-2013, likely to announce on June 1, 2012,” said a representative of cement industry.

In this budget, the government is likely to reduce FED from Rs 500 per ton to Rs250 per ton, he said and added that it is also expected that government may not cut Rs 250 per ton and announce only Rs 200 per ton reduction as demanded by cement industry.

Currently, the cement sector is paying Rs 25 per bag excise duty and if Rs 200 was announced than it will be Rs 15 per bag. While in case of cut up to Rs 250 it will decline to Rs 12.5 per bag, they informed.

Sources said that the cement industry has also demanded the finance ministry to reduce the FED on cement by Rs 200 per tone from existing Rs 500 per tone. All Pakistan Cement Manufacturers Association (APCMA), in its budget proposals for 2012-13 submitted to the Federal Board of Revenue (FBR), has pointed out that the cement industry was paying FED of Rs 500 per tone, which comes around Rs 25 per bag.

However, it said that high rate taxation encourages evasion and negatively impact on consumption of cement, which is continue to decline in the domestic market.

They have also pointed out in the proposals that in last year’s budget speech, minister finance announced that the FED on cement would be phased out in three years. In light of the announcement they have demanded that the federal government should fulfill its commitment and reduce FED stepwise to zero as announced.

According to APCMA this move will support the efforts of the government to encourage construction activities in the country.

AFRICA: TANZANIA: Tanga Cement to construct second kiln in August

Tanga Cement Company Limited, one of the country’s biggest cement producers, will construct a second kiln in August this year.

Speaking in Dar es Salaam during the company’s 2011 Annual General Meeting at the weekend, TCC Managing Director Erik Westerberg said the second kiln will enable the firm to produce enough clinker for its requirements and do away with imports.

“The East African market is experiencing rapid economic development as a result of infrastructure improvement and housing needs, so this will give the company a significant competitive advantage,” he said.

Erik said the construction of the kiln expected to commence in the third quarter of this year would increase the company’s clinker production capacity by 600,000 tonnes per annum, more than double current capacity.

He further said that the building of the second kiln will be a historic moment to TCC, Afrisam and Tanzania, given the magnitude of the project to cost an estimated USD165m.

Speaking about the company’s performance, the managing director said cement production capacity in 2010 increased from 750,000 tonnes to more than 1.2 tonnes per year after commissioning the company’s second cement mill.

Addressing some of its shareholders, Erik said for the year 2011 the company has played a big role in giving back to the community through its social investment programme, contributing 341m/- for various projects in the area of health, education, sustainable development and environment.

However mentioning some of the challenges the firm faced during the year 2011 he said unreliable power supply forced the company to make extensive use of its own power generating capacity to safeguard production which hiked production costs.

He also mentioned another challenge as deterioration of railway network which again forced the company to increasingly rely on road transport for distribution of its products.

AFRICA: TANZANIA: Cement firm offers lower dividends as profit falls by 34pc

Tanga Cement Company shareholders will receive Sh86 per share as annual dividends due to a fall of 34 per cent in profit on last year’s financial accounts.

The dividend is however a 65.2 per cent drop from the Sh247 per share that shareholders pocketed a year before.

The firm that trades as Simba at the Dar es Salaam Stock Exchange closed the 2011 financial year with an after tax profit of Sh21 billion compared to Sh32 billion profit the year before.

The fall of profit was caused by higher clinker prices and technical problems at the Tanga plant.

The dividend comprises 25 per cent of net profit, as proposed by the firm’s directors, acting chairperson Samuel Wangwe said.

“Consequently the Board has recommended final dividend of Sh47 per share. This amounts to Sh3 billion, the interim dividend per share was Sh39,” said Prof Wangwe

The last day of trading cum dividend was 30th April this year and shareholders will get their dividend by 30th May 2012.

Prof Wangwe noted that operations were affected by higher than normal prices of clinker imports during the first quarter. Clinker is used in the manufacturing of cement.

TCC managing director Erik Westerberg also said the damage of one of the four kiln tyres forced the company to spend more than Sh12 billion in refurbishment of the tyre, buying spare parts, maintenance experts and specialized equipment.

“Importing the clinker and the repair of the kiln tyre and other costs reduced the operating profit of the company by more than Sh12 billion,” said Mr Westerberg.

According to the company annual report, the operating profit fell from about Sh46 billion to Sh38 billion last year, a 17 per cent drop.

Mr Westerberg noted that there was a slow operation of the company during the first half of last year due to delayed government funding for various infrastructure projects, however, starting August the demand for cement increased which created a health market throughout of the year.

Simba cement increased its sales in line with the demand, achieving a revenue increase of about 8 per cent from more than Sh149 billion in 2010 to more than Sh161 billion last year.

Despite the increase in revenue last year, the company faced increased in production and distribution costs, which impacted negatively on the earnings before interest, tax and depreciation of 17 per cent compared to a year before.

The company is eyeing to increase its profit this year due to the promising market of East Africa Community empowered by reduced trade barriers, which might on other hand increase competition and possibly consolidation of regional cement industry.

“With the company’s expansion plan now in its final stage and with dedicated and experienced staff, TCC is well positioned to take advantage of this situation,” notes Mr Westerberg

ESPAÑA: Cementos Portland espera volver a beneficios en 2013, tras un resultado negativo de 327,4 millones en 2011

El Grupo Cementos Portland Valderrivas espera obtener un beneficio bruto de explotación (Ebidta) de 200 millones de euros y volver a beneficios en 2013 gracias a la ejecución del Plan NewVal, que ha puesto en marcha este año. En 2011 el Grupo registró un resultado negativo de 327,4 millones de euros, frente al beneficio de 1,2 millones logrado en 2010.

Así lo ha destacado su nuevo presidente y consejero delegado, Juan Béjar, durante su intervención ante la Junta General de Accionistas celebrada en Pamplona. Béjar ha explicado que la evolución de los resultados se debe al saneamiento del balance acometido por Cementos Portland Valderrivas, cifrado en 337 millones de euros.

Los datos correspondientes a 2011 recogen el efecto de la reclasificación contable del Grupo Giant Cement Holding Inc, que desde julio del año pasado figura como activo no corriente en proceso de venta.

El Plan NewVal 2012-2013, que incide tanto en la reducción de costes como en la búsqueda de nuevos ingresos, pretende adaptar la estructura industrial en España a la nueva realidad del mercado, según ha explicado la compañía.

Según el presidente, este plan de choque generará en torno a 80 millones de euros de Ebitda: 50 millones por la adecuación de la capacidad productiva en España y 30 millones por la optimización de los costes de producción en EEUU. Su aplicación permitirá lograr los objetivos del Plan de Negocios 2012-2017, que prevé el retorno a beneficios y la consecución de un Ebitda de 200 millones en 2013.

Béjar ha explicado que el consumo de cemento en España se situó el año pasado en 20,4 millones de toneladas, un 64 por ciento por debajo del máximo alcanzado en 2007, y que para 2012 se espera una demanda inferior a los 16 millones de toneladas. A medio o largo plazo, añadió, el consumo se estabilizará en torno a los 25-30 millones de toneladas.

"Es evidente que el mercado español posee una brecha significativa entre la capacidad instalada y la demanda actual, incluso la que se prevé a futuro", ha indicado el presidente. Por el contrario, ha apuntado Béjar, en EEUU se ha iniciado la fase de recuperación del consumo.

El presidente de Cementos Portland Valderrivas ha subrayado ante los accionistas que "no se prevé necesaria deuda adicional para financiar el plan de negocio". Según Béjar, la consecución de los objetivos fijados, con el complemento de algunas alternativas de reducción del endeudamiento, "harán viable la actualización de las condiciones de la deuda, teniendo en cuenta los actuales requerimientos del mercado financiero".

APUESTA POR LA VALORIZACIÓN Y LA INVESTIGACIÓN

Durante el pasado ejercicio, el Grupo ha seguido progresando en la política de valorización energética y de materias primas. El presidente ha señalado en su discurso que en 2011 se ha iniciado el empleo de combustibles alternativos de biomasa en dos centros productivos en España, con lo que son ya seis de las ocho fábricas nacionales las que lo utilizan.

El primer ejecutivo de la cementera ha subrayado también que el Grupo ha seguido potenciando la investigación de nuevos productos con mayor valor añadido y/o nuevos mercados. En los dos últimos años, se han desarrollado once nuevos cementos especiales, competitivos por la reducción del tiempo de fraguado, su resistencia a condiciones meteorológicas extremas y su menor impacto ambiental.

La empresa ha comenzado a trabajar en la valorización tecnológica y en el posicionamiento necesario para comercializar la cartera de productos innovadores.

EJERCICIO 2011

El presidente ha expuesto las cuentas del Grupo en 2011, ejercicio en el que se registró un resultado negativo de 327,4 millones de euros, frente al beneficio de 1,2 millones logrado en 2010. Béjar ha explicado que la evolución de los resultados se debe al saneamiento del balance acometido por Cementos Portland Valderrivas, cifrado en 337 millones de euros.

Los datos correspondientes a 2011 recogen el efecto de la reclasificación contable del Grupo Giant Cement Holding Inc, que desde julio del año pasado figura como activo no corriente en proceso de venta.

ACUERDOS

La Junta General de Accionistas, reunida en Pamplona, ha aprobado las cuentas del año pasado y la aplicación del resultado. Debido a las pérdidas, se ha aprobado no pagar dividendo ni dotar partida alguna para retribuir a los miembros del Consejo de Administración por el concepto de participación en beneficios.

Los accionistas han dado también el visto bueno a la modificación de los Estatutos Sociales y del Reglamento de la Junta General para adaptarlos a los cambios legislativos recientes y la renovación de las facultades del Consejo de Administración para aumentar capital en hasta el 50 por ciento durante un plazo de cinco años y para emitir renta fija. Se ha ratificado, además, el nombramiento como consejero del presidente, Juan Béjar, aprobado por el Consejo de Administración el pasado 12 de enero.