Titan Group, the Greek cement and building materials producer, is proceeding with plans to increase its solid fuels usage at 3Q15, as the gas shortages experienced in Egypt throughout 2014 are expected to continue in 2015. This investment program will likely lead to a greater proportion of coal in the group's fuel mix and hence reducing costs and the risk of plants being idled for lack of fuel.
Plant utilization in the country fell to 50.0% of capacity in 2014 as gas shortages curtailed production. Reductions in operating costs and increased utilization should be positive for group EBITDA margins which fell to 8.19% for 1Q15 down from 12.1% over the same period last year.
Titan is likely to benefit from its strong position in key U.S. markets, with the country’s group EBITDA contribution rising to 29.4% for LTM 1Q15 up EUR 4.87m from 25.6% at FY14 as the country’s broader economic recovery continues. The Portland Cement Authority are forecasting an 8.00% increase for U.S. cement consumption in 2015 and 2016.
No comments:
Post a Comment