Beltone Financial said that Misr Cement–Qena performed well in terms of the operational power during the first quarter (Q1) of 2016. Operational power exceeded the 100% ratio in the company’s factory, as well as its subsidiary ASEC in Minya.
Beltone said that ASEC contributed roughly 60% to Misr Cement’s revenues, which reached EGP 723.067m during Q1 of 2016.
ASEC’s contribution was due to the higher selling price of the cement produced at its factory, as its price increased 40% above the cement produced in Misr Cement’s factory in Qena. ASEC owns stock in the clinker—the feedstock used in the cement industry—as well.
Beltone pointed out that Misr Cement’s financing expenses increased to EGP 57.402m. The debt rate of the budget is high, as the debt to assets ratio increased by 1.3 times.
On the other hand, Beltone pointed out that the future of the market share of Misr Cement–Qena in Upper Egypt is threatened, as it occupies the second position in the market, following Mexican company Cemex.
Beltone noted that the government will announce the result of the license 8 tender on 30 July, which will add new production capacity to compete with current companies in the market, including Misr Cement–Qena.
Beltone predicts that cement prices will remain low at a price of EGP 500 per tonne until 2018, compared to EGP 700 in 2016, due to extensive supply, based on the current production capacity.