New plant increases CAFCA energy consumption 16pc

CAFCA, the country’s only cable manufacturer, says its energy intensity rose 16 percent in the year ended September 30, 2023 compared to full year 2022, owing to the installation of an electrolysis plant.

Energy intensity is defined as the amount of energy used to produce a given level of output or activity. Using less energy to produce a product or provide a service results in reduced energy intensity.

Energy in the form of electricity, liquid petroleum gas, diesel and petrol is necessary for all CAFCA operations to run continuously.

About 92 percent of the total energy needed is in the form of electricity, with the remaining 8 percent coming from other sources.

To make computation and reporting easier, the remaining 8 percent of energy sources are transformed from kWh to gigajoules.

In comparison to full year 2022, the company’s production output dropped by 12 percent while energy consumption increased by 6 percent.

“The introduction of the electrolysis plant contributed towards the increase in energy consumption, however it does not directly contribute toward the dispatched finished product hence the increase in intensity,” the company said in its full year 2023 sustainability report.

“The introduction of the plant was strategic to enable the organisation to stop outsourcing conversion of copper anodes into starter sheets which are an addition into the raw material requirements of the organization that is mainly imported.”

As for the financials, the inflation adjusted value of acquisitions of property, plants, and equipment rose 346,41 percent to $1,16 billion in full year 2023 from $260,15 million in full year 2022.

Revenue went up by 118,66 percent to $164 billion in full year 2023 from $75 billion in full year 2022, reflecting the volatility in exchange rates, sales mix changes and copper price movements.

Most of CAFCA’s topline comes from the domestic market.

The group’s profit after tax went up by 558,20 percent to $51,3 billion during the period under review from $7,8 billion previously.