Cemex Holdings posts R1.87-B profit

CEMEX Holdings Philippines, Inc. (CHP) reported a pro-forma consolidated net income of R1.87 billion for 2016 despite a weaker fourth quarter.

In a disclosure to the Philippine Stock Exchange, CHP said it incurred a R7.18 million loss in the fourth quarter last year due to finance and foreign exchange costs amounting to R843.8 million. The firm did not provide pro-forma figures for last year.

“We are proud of our operating results. Despite challenging market conditions during the second half of 2016 marked by a slowdown in construction activity, coupled with ‘La Niña-like’ weather conditions, we managed to increase both our bottom line and profitability through cost management efforts. We will continue to focus on these aspects of the business,” said CHP President Pedro Jose Palomino.

Net sales increased 2 percent year-on-year to R25.37 billion from R24.93 billion due to higher domestic cement volume and price. In the fourth quarter, it dropped 13 percent to R5.56 billion from R6.38 billion.

Consolidated pro forma Operating EBITDA for 2016 grew by 11 percent to R6.7 billion in 2016 from R6.1 billion in 2015. For the fourth quarter, EBITDA grew 3 percent to R1.13 billion from R1.1 billion.

Pro forma Operating EBITDA margin increased 2.2 percentage points in 2016 versus 2015, from 24.3 percent to 26.5 percent. The increases were attributed to lower cost of sales, mainly derived from power and fuel inputs.

Meanwhile, CHP reported that, on February 1, 2017, it signed a Senior Unsecured Peso Term Loan Facility Agreement with BDO Unibank, Inc. for up to US$280 million, to refinance majority of its outstanding long-term Loan with New Sunward Holding B.V., a related company.