Lafarge posts N30bn loss in six months

Lafarge posts N30bn loss in six months

Lafarge posts N30bn loss in six months

Cement and building solutions provider, Lafarge Africa Plc, recorded a loss of N30.184bn as of June 30, 2016, according to figures provided by the company to the Nigerian Stock Exchange.

The firm’s revenue also dropped to N107.364bn from N152.178bn recorded the same period last year.

Courteville Business Solutions Plc, which also submitted its result to the NSE, recorded a significant drop in its profit after tax. Its profit after tax slid to N4.764m compared to last year’s figure of N210.530m. Courteville’s revenue fell to N618.234m from N822.174m (H12015).

Lafarge, in a statement, said it recorded a cash generation of N20bn, completed the 100 per cent ownership of United Cement of Nigeria Limited. It recorded success in its N60bn bond issuance, as the funds were fully utilised to refinance Unicem’s third party naira debt.

The firm said its industrial operations were significantly impacted by gas supply shortages in the South-West and the South-East operations with occasional plant repair works. As a result, its earnings before interest, tax, depreciation and amortisation stood at N12bn, as against N48bn in H1 2015.

Given the current exchange rate environment, it said actions were being implemented to restructure and refinance the United States dollar denominated debt, adding, “These loans were largely used to fund the expansion projects which will add 2.5 metric tonnes per annum cement capacity to the current production capacity of Unicem as well as that of the group.

“We are at the final stage of the voluntary tender offer issued to increase our shares in Ashakacem from 82.46 per cent presently. The shares acquisition is expected to conclude before the end of the year.”

Its South African cement operations reported solid volume growth, with cement sales volume by eight per cent compared to H1 2015, and a steady aggregates volume in H1 2016.

Commenting on the results, the Chief Executive Officer, Lafarge Africa Plc, Mr. Michel Puchercos, said, “In spite of the macroeconomic challenges and market uncertainties, our company will continue to deliver good performance with significant upside to come as we conclude on the integration journey to form Lafarge Africa Plc. The new organisation is much stronger and better positioned to deliver operational excellence and improve value to our shareholders.”

Meanwhile, the NSE market capitalisation dropped to N9.692tn from N9.784tn on Wednesday, while the All-Share Index also slid to 28,221.18 basis points from 28,488.56 basis points.

A total of 309.719 million shares worth N2.083bn exchanged hands in 3,934 deals.

Source:© Copyright Punch Online