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FOR MORE INFORMATION pre postr Sh = eo en: eee (UV‘Cement industry Reliable & cost saving lubricants Creating value NS . x TotalEnergies fer uaa lie elas) Sea aed otal facturer and marketer ee eet " ‘more than 5800 employees in 160 countries, Totaénergle ubricants division offers innovat eee) eenviconmentall friendly products and services, developed World n Omar seen eee ee te 6 —_Latestnews and diary dates utomotive, industrial and marine markets 1 juckatry appointments Peete 12 Comporate watch Imanatons 16 Financialupdate Cemientreview 18 Infrastructure: the shining light in Colombia's ‘cement market Tradeship Publications Ltd (ld King's Head Court, 15 High Street, Dorking Surrey, RH41AR, United Kingdom. te $44 (0) 3306 740363/740383 944 0) 1306 40660 ©. info@CemWet.com % Nomindntengesboud ww: Cemmeticom EDITORIAL & KEY CONTACTS MonagngEdtor: Thomas Armstrong cotsaitta Commisoning tor: Peter Batt = Malet Bal 23 Colombia's road to social development Jolyne Fernandes Nes &Features Etor Suzanne Starbuck i isi Technol Constant’ Dr Michael Clark rm e ural road pl P Adverts Russell Bateup Subscription Susan Hargreaves 26 Winning carbon reduction strategies era p arbonisation 28 Accelerating the drop in CO, emissions in the cement sector 30 Paths todecarbonisation Yoleim ar rg Mat gitalisatior 35 Threelines of defence " ‘i Installation 37 Thedigitalisation approach Dgemir pointsin the p P 4 : a data-centric work approach. 42 shared vision ofthe future Prog gistics and bagged cement 47 Closed loop Al optimisation Dptimitive and Titan Cement aint x nek ‘cement pla 49 Process-based Al meets machine health Event 4 jing the cement industry erence ant nin Barcel in Cement experts 52. Tinhatson in Nigeria DrMichael Clark discusses the Dangote Cem h en pute over the Oba) pla 54 Quality testing at the cement factory nur Harrisson look : r e sh quality cement Waste heat recovery 57 WHRfor Egypt Kor it i r ment sector with its frst waste he 59 Pursing India's WHR potential feni Turbines bring turbine WHR techn phattisgarh and Raj 61 Value from waste heat eR DECEMBER 2011 anya Portugal ond Turkey Shredder technology 70 Shreddingin El salvador Holcim El Salvador's Maya cement plant receive ide ing Bulk material handling n 00st dom minal 14 Conveyor chain lubrications FB Chain describes its automated lubricatio 16 3D radar level measurement lo digital twin for improved real time cont 78 Rotary valves: robust co Low-carbon transport 82 China powers up NEVs Bagging & packaging | eggrgabeterhewre Round-up 95 Productnews wenergy vehicles for low-carbor sits Future in Action’ strategy to reas Diary dates & 6-9 DECEMBER 2022 THNCB Intemational and Building Concrete; Materials ‘New Dethi, India swunedinga.com a 7 DECEMBER 2022 Cemtech Live Webinar: ‘Technologies forthe digital plant Vatal event swwCertechcom 4a 11 JANUARY 2023 ‘Cemtech Live Webinar: Emissions control Virtual event wwwCemtech com 4417-19 JANUARY 2023 ‘World of Concrete Las Vegas Convention Centre, Lasvegas, USA wwuewordotconcrete.com ‘412-15 FEBRUARY 2023 Sonrch Middle Rac ica ‘Grand Hyatt Hotel, Dubai ‘wu Comtech com/MEA2023 World Tea Nees Se ee mee DANGOTE CEMENT Group revenue climbs 15% in 9M22 ‘Dangote Cement reported a group revenue of NGN1177-3bn (USS2.68bn) in the 9422, ‘up 15.2 percent YoY. Group EBITDA over the same period advanced by 0.2 percent to [NGN515,9bn, with an EBITDA margin of 43.8 percent. Profit after tax fll 23.4 per cent Yor ‘to NGN213.1bn, mainly due to exchange losses from the depreciation in the CFA and cede. Group sales volumes in the 9622 came in at 20.8Mt, down 6.2 per cent Yr. ‘The company is reportedly on track to commission its alternative fue feeding system at ‘Obajana Lines | and V, and bese Line Il It has also commissioned its power plant at Okpella and workis “progressing wel” to deploy grinding plants in Ghana and Cte d'ivoire, In Nigeria Dangote sold 13.5Mt of cement and clinker in the 9M22, down 47 per cent YoY. Domestic sales alone came in at 12.8Mt, slightly lower than the previous year ‘due to significant inflation, rising interest rates and energy supply disruptions, which impacted production. Revenue for the Nigerian operations advanced by 22.1 per cent YoY ‘to NGN890.7bn, supported by price increases. The rapidlyincreasing price of automotive {208 oll (AGO) resulted in a 77.9 per cent YoY rise in selling and distribution costs in Nigeria Despite ths, a strong EBITDA of NGN479,9bn, up 45 per cent Yor, was reported During the period, the company exported $81,000t of cement, up 10 per cent YoY, and '56,000t of clinker. ‘The pan-African regions (all operations outside Nigeria) sold 7.4Mt of cement and clinker Jn the 9622, down 9.7 per cent YoY as global supply chains continued to be disrupted and ‘commodity prices continued to climb, This was exacerbated by a shutdown of the company’s Congo plant for over two months for maintenance and repairs, along with extended power plant maintenance in Senegal. In Cameroon, Ghana and Sierra Leone, freight costs remain ‘elevated, causing volatility in the landing cost of cement and clinker. Total pan-Aftican volumes accounted for 35.4 percent of group volumes over the nine-month period. Pan-African revenue fell 3.1 per cent YoY to NGN288.Sbn in the M22, on the back of lower volumes sold, Pan-African EBITDA stood at NGNA7.8bn (before central costs and eliminations), down 28.6 per cent due to the inflationary pressure on costs, high freight charges and lower volumes sold ‘15-16 MARCH 2023 UK Concrete Show NEC, Birmingham, UK btpsfeoncreteshow.couk 4429-30 MARCH 2023 SOLIDS Dortmund Dortmund, Germany wwwsolids-dortmund.defery a 17-21 APRIL 2023 Hanover Messe Hanover, Germany vwwuchanovermesse defer & 23-27 APRIL 2023 65th IEEE-IAS/PCA ‘Technical Cement Conference and Exhibtion Dallas, USA “wwivcementconference org VIETNAM Cement sales up 25% in September “otal cement dispatches in Vietnam surged by 25 per cent YoY to 4,631,353t in September 2022, according to data published by the Vietnam National Cement Association (VNCA). Of this total, VICEM sales were up 30 per cent YoY to 1,598,940t while other VNCA-affillated ce- ‘ment companies reported a 59 per cent surge to 1,132,413t in September 2022 when com: pared with September 2021. Other cement producers in Vietnam saw dispatches rise by 2 ‘more modest nine percent YoY to 1.9Mt Exports advanced 33 per cent YoY to 1,746,094t in September 2022. Clinker exports were ‘up 15 per cent YoY to 769,400t while cement exports increased 25 per cent Yo to 976,694t. January-September 2022 Jn the January-September 2022 period total cement sales edged up by five per cent to 46,524Mt. VICEM sales increased by 10 per cent YOY to 15,997Mt. Other VNCA-affiliated com: panies reported an eight per cent advance in sales to 11.282Mt while non-affiliated cement producers saw a one per cent uptick to 19.255Mt. ‘Cement and clinker exports fram Vietnam fll by 28 per cent YoY to 24.253¢t with the larger change seen in clinker exports as 11.847Mt was exported, down 45 per cent Yor. Cement ‘exports edged up by two per cent YOY to 12406Mt. Vv“as MARKET OVERVIEW MARKET UPDATE 7 | China demand switches to growth for first time in 17 months Yearto-date (YtD) volume trends, as re ported in November 2022, show that Chi nals market, representing 55 per cent of lobal demand, recorded its fst positive ‘monthly expansion in cement output in 17 months in September, when production expanded by 1.7 percent YOY. A sustained depression in the China housing market continues to undermine construction ac- tivity levels, but this is now being partially offset by rising public sector infrastructure investment. Nevertheless, ¥10 output was stil 12.1 per cent down over the frst nine ‘months ofthe year to September 2022. Im the US consumption continues its growth path, expanding 4.1 per cent over ‘the 8M22. However, there Is a significant weakness in construction spending, which fell by the most in 1.5 years in August, pulled down by a sharp decline in single- family homebuilding as mortgage rates began to surge. In the Portland Cement ‘Association's autumn cement consumption forecast released in October, demand was Projected to decline by 3:5 per cent in 2023 due to inflation and rising interest rates. Volumes in Russia are expanding, but the Yor rate is slowing sharply to 4.6 per cent Inthe 9422 from 8.2 percent in the 1422. Wedd 089 2) sep) Lananon 2) aa oe ‘nn e972) aetna 02122) rena 2) ‘step 2) se’) a(n ane Sanopiep 2 Stanton ep 2) Som ep) dromen 2) tenine'2) easton suet mai ep 2) pede 2) aeons uy) etna 2) rece) asian oa) hl 2) ‘SPAIN, Spanish demand contracts 3% YoY Spain's cement market contracted by 3.4 per cent YoY in September to 1,245,816t, according to Spanish cement association, Oficemen. Tis ith consecutive monthly decline has pushed ‘volumes on a 12-month basis into the red, with domestic cement sales contracting by 0.2 per cent YoY in the January-September 2022 perio. External trade also lacked lustre as exports were down 5.4 per cent YoY to 4,251,175t in September. “Furthermore, the accumulated figure for the last 12 months (moving year) places our exports below 6M, a figure that takes on even more valu if we take into account ‘that in the toughest years of the previous construction crisis we came close to exporting, LOMt’ explains Aniceto Zaragoza, Oficeren's general directo Meanwhile, imports increased by 42 per cent YoY, causing concem among domestic producers, “We attend with concern to the evolution ofthis parameter because it indicates that the loss of competitiveness is not only affecting our foreign activity, but also the domestic market. We are talking about almost 1.6Mt imported in the last 12 months, of which 1Mt correspond to clinker, a product that is the basis of cement and whose production has a strong impact on energy costs. We cannot ignore the fact that we compete in a two- ‘way market in which other producers in the Mediterranean arch, such as Algeria or Egypt, pay much less for their energy inputs, and this, sooner or later, had to also affect domestic consumption and, obviously, the demand of our local factories,” concludes Mr Zaragoza. COLOMBIA Shipments up 2% ‘Cement dispatches in Colombia increased 2.1 per cent YoY to 1.188Mt in September 2022 when compared with September 2021, (2.264nt), according to the country’ statis: tics agency, DANE. When compared with September 2019, dispatches increased 10.2 per cent. Bulk sales were up 9.3 per cent while bagged ‘cement sales posted a 1.3 per cent decline. Dispatches to ready-mix conerete suppliers increased 149 per cent but construction ‘companies and contractors reduced their cofttake by 2.8 per cent YoY in September 2022. Retail sector sales were down 1.9 per cent Yor, Production from domestic producers in September 2022 reached 1.28Mt, up 4.1 per ‘cent Yor from 1.229Mt in September 2021 CEMBER 2022 ICRWORLD NEWS ENERGY MARKET Energy complex under interest rate pressure - coal falls sharply on lower demand while petcoke stable and discount neutral {87 Frank 0, Bronnvell,BrannvollAgS, Denmark Leading central banks raised rates again by 0.75 per cent, with promises of more to ‘come as inflation is persistent as sanctions are stil keeping energy prices artificially high in Europe. The EU has not agreed on any common measures as these are very hard to introduce ina free market. However, the threat of demand destruction combined with a warm start tothe winter has put pres- sure on the overall energy complex. Gas prices have been falling as reservoirs are full in EU and coal stocks are at record levels. The intensive buying has stopped and markets are calming down, at least nti the winter cold may be back. The war in Ukraine is ina new phase and this, combined with the upcoming winter, could perhaps have the two sides discuss a peace agreement without outside interference. The US dollar has fallen back to parity 1,000 with the euro as the European Central \(82nk is now keeping up with the interest rate hikes, For 2023 Branvoll ApS expects 2 range of US$0.90-1.10 with an average of ussi.o2 it and gas Ol rose after the OPEC* agreement to cut 2mbpd, stabilising between USS90-100/bbI _88 China i keeping its COVID-19 policy with risk of closures. Overall demand may stil be falling as interest rates starts to bite, but oil is now also being used for power seneration, supporting oil prices. The next OPEC meetings on 4 December ‘The following day, the G7 will introduce a price cap for Russian ol, which is expected to be extremely hard to implement and control ‘The short-term range for Brentisexpected to be US$92-100/bbl. For 2023 Brannwell ter DECEMBER 2022 ‘ss Average onuar/201022:20% 3 ‘ApS expects a range of US$80-115/bbI, wth an average of US$9/bbI. Coat Coal has fallen sharply in both API2 and ‘APIA, reflecting lower demand. Russian discounts are also finding their way though the markets, However, Russian coal exports ‘are up 22 per cent YoY in 2022. The eight: fold rise in Russian coal exports to Turkey shows the huge discounts given to countries ‘outside the sanction area. In Turkey's case, the country’s government is considering the longer-term purchase of Russian coal. The stocks in ARA are at a record high while in China coal production has been increased, lowering import demand. This has also pushed the coal price downwards. The clean dark spread remains at £UR250 and as a result, there is a high demand for coal used in power generation. The price has now shifted to the 1023 The API2 front-quarter (1923) contract fell again by 21 per cent MoM to USS200. For 2023 Brannvoll ApS expects a range of 'U5§200-300 with an average of USS225. The ‘API2 Cal23 contract fell 17 per cent MoM at 'US$195. In 2023 a range of USS200-300 is expected, with an average of US$250. ‘The API¢ front-quarter (1923) contract decreased by 18 per cent MoM to USS206. ‘A range of US$200-300 is expected with an average of US$240 in 2023. The API4 Cal23 ‘contract fell 16 per cent MoM to US$199. In 2023 the price is expected to range between 'Us$180-280 with an average of USS230. Petcoke With the decline in coal prices, petcoke has fallen back to the neutral zone and seen stable in US dolla terms with demand fading out. tt remains the cheapest fuel Venezuelan product has been seen in several destinations, inhibiting mid-sulphur range prices As long asthe coal price is declining at the curtent speed, buyers are holding back. The low water levels on the Mississippi River result in some product not reaching the export ports. There sno specific petcoke news and the trends nthe coal marke, including Russian Aiscounts for Turkey and India, and China that do not apply sanctions against Russia, Will keep aid on petcoke prices. Based on low Pls, global cement demand could be in danger of falling, but the petcoke market is expected tobe stable The USGC FOB 65 per cent sulphur (5) contract is up three per cent MoM to USS142, with the discount to API sharply down to 45 percent. The USGC CFR ARA 6S per cent S contacts up one per cent MoM 0 USS165 as a result of lower freight rates ‘of USS23 with the discount in neutral down from 49 to 34 percent. The USGC FOB 45 per cent S contract is up three per cent MoM at USS152, with the discount to APH down to 41 per cent. ‘The CFR ARA4. per cent contract is up one per cent MoM to USS175, with the discount down to 30 per cent towards AP2 7STRONGEST PROVEN TRACK RECORD Soon eRe RET lull DA ie el) pee aL) ® © G ekoraenergi| 10 | WORLD NEWS CARBON MARKETS, EUA prices consolidate at higher level awaiting policy decisions {By Frank 0. Brennvel,Brannvoll ApS, Denmark The inerease in fossil fuels use for power ‘Beneration is koeping the demand for EUAS relatively high. However, a mild winter start ‘and a falling energy complex temper this trend. Therefore rally above EUR8O is not ‘expected in the short term as an economic slowdown is expected to lead to demand FREIGHT MONITOR destruction. Speculators have reduced their presence in terms of size and more short positions have been seen. The market is now awaiting political decisions, particularly the proposal to sell EUAS to fund different programmes within EU efforts to support consumers. If this Is implemented via front loading, ie selling EUAs of 2024-26 during next year, it will put {a.cap on any rallies. The EUA December 2022 price traded its last month stightly higher at EUR78 and Is now testing resistance in the range of EUR6S-80, within the expected 2023 range cof EUR60.95, with an average of EURS2, from the Brannvoll ApS forecast revised slightly at Cemtech Europe 2022. Issues on the political agenda include: * inerease in the linear reduction factor (URF) to 4.2 from 2:2 per cent from 2024 + reduction of 177m allowances in 2024 ‘keep the Market Stability Reserve (MSR) Intake at 24 percent, notreducingitto 12 percent in2024 * phase out free allowances by Introducing the Carbon Border ‘Adjustment Mechanism (CBAM) between 2026-35 * Introduction of trading scheme for transport and buildings from 2025-27. USG freight market sees softening rates {8 Bronnvol 498, Denmark USG Supramax freight market sentiment throughout the month was about negative undertones due to a somewhat thinner ‘cargo book. Rates for shipments from the region were softening. with more tonnage entering the market and owners having to chase bids and discount if they want to cov fer, Demand levels were below average for the time of year, mainly due to the ongoing logistic issues in the Mississippi River, where low draught issues complicate barge traffic and slow down grains and fertiliser export. SG area fixing activity was below average with significantly fewer additional require ments that caused ships to pile up daily Freight rates forthe transportation of a Supramaxot of petcoke from Houston to |ARA ports with spot laycans are at USS23/t (-USS2/t MoM) on average. Deals for the delivery of $0,000t of petcoke from Houston to Iskenderun with spot laycans are discussed at around USS27-28/t on average. eR DECEMBER 2022 Shipping costs for delivery of a Supramax: lot of petcoke from USG to EC India are at USS47/t on average (-USS2/t MoM). The Supramax/Ultramax market is expected stay under pressure in the Frappr ss ECBO EESSEES SSIS itt Seance: roves near future due to ongoing issues on the Mississippi River, which negatively affects export levels from the region. Additional ‘pressure will come from softening Panamax ‘markets in the North and South Atlantic 4News in brief... NIGERIA BUA Cement reports 41% increase in 9M22 revenue BUA Cement’s revenue in the 9422 increased by 40 per cent to NGN262.6bn (US$599m from NGN1B6.sbnin the 9M21. Operating profit advanced by 3.1 percent toNGN9.2bn from NGNTS.7bn as at 9821, Profit befor toNGN74.abnin the 9M2L improved by 195 per cent to NGNBB.Bbn cony RAZ. 8th SEMTEC event attracts o The Sth SEMTEC Technical Seminar was held in Belo Horizonte, Brazil, on 25-27 October More than 350 technicians from the cement and lime industry from 81 diferent plants in South America attended the event. A total of 44 companies sponsored SEMTEC 2 PAKISTAN Lucky Cement raises capacity and market share [AKD Research has termed Lucky Ce completion ofthe 3.15Mta expansion of ts Pezu plant in December 20 Pakistan's largest cement conglomerate. With the the company’s total ase rom cement capacty wil in 2 to 15a, resulting in a marketshare increase from 148 percent to 17.3 percent, according toinvestment analyst Mohsin Ali NORTHERN IRELAND Cookstown cement plant renamed as Cemcor The Cookstown cement plant in Northern Ireland, acquired in January by LCC Group and David Milar for GBPS6m (US$64.3m), has changed its name to Cemcor. The plant, wn Cement from Holcim. Since then it has been led and co-owned by David Nillar, a former exec originally known as Lafarge Cement ireland, was acquired by Cook utive with Lafarge SPAIN Votorantim Cimentos com) quisition Votorantim Cimentos has completed its acquisition ofall the businesses of Heidel Materials inthe south of Spain, inc ing a. moder integrated cement plant located i ss quarries and 1 ready mixplantsin Andalusia region, Following this transaction, Votorantim Cimentos Spain has six integrated cement plants with an installed ‘cement eapacty of ta, two grinding stations, one mortar plant and several concrete and ezregates plants, located in the regions of Andalusia, Canary Islands, Castile and Leén, oa Gujarat Sidhe ports loss of revenue and profit India’s Gujarat Sidhee Cement Utd h 7.16m) in the quarter ended 30 September 2 in the same period a year cater. Profit over the 2022 three-month period posted a loss of INRLS4m, compared to a loss of INRO.80m inthe same quarter in 202 ported unaudited revenue from operations of down from INRIGE3 share over the 2022 quarter came in at-INR.73, versus -INRO.01 inthe comparable pesod of024 WORLD NEWS | Tiel t a FelalaTel¥ arc) al s)0 63 eer icy eee Too has made during her time at Abi. W dao Re Teg Se Sa iera CORPORATE NEWS. HOLCIM Holcim posts 10% rise in sales in 3Q22 Holcim reported record 3Q net sales of CHF8045m (US$8043.1m), up 10.4 per cent Yo and 36.3 per cent on a like-for-like (LIL) basis, from CHF7286m. Recurring EBIT edged up 1.2 per ‘cent (47.7 percent LiL) to CHF1551m inthe 3Q22 from CHF1S34m in the 3921. {In the 9M22 group net sales increased 14.5 per cent (#13.9 per cent LiL) to CHF22,725m {from CHF19,842m in the 9623. Recurring EBITDA advanced to CHF3724m in the 9M22 from ‘CHF3516m in the year-ago period, This represents a YoY rise of .9 percent and a LAL increase of 65 per cent. Jan Jenisch, CEO of Holcim, commented: “Q3 was a quarter of record performance and ‘successful transformation for Holcim. We continued to expand Solutions & Products with {four acquisitions and delivered 10 bolt-ons in aggregates and ready-mix this year, We also. completed the divestments of India and Brazil with cash proceeds of USS7.3bn. Solutions. {& Products is already reaching 25 per cent of our net sales in 2022, driven by the roofing, ‘business, whichis delivering a record Recuering EBIT margin of 20 per cent. We strengthened ‘our footprint in the attractive North America market, accounting for 40 per cent of sales and 41 percent of Recurring EBIT? Going forward, the company will use the USS7.3bn cash proceeds from the divestments in india and Brazil to fund profitable growth and continued acquisitions white maintaining, strict value discipline, Holcim sad. It will also support a strong balance sheet, targeting debt leverage of around 1x in 2022 and deliver attractive returns for its shareholders, with the launch ofa CHF2bn share buyback programme, ‘ANHUI CONCH Anhui Conch revenue falls 30% in 3Q22 Cis ssssstizoi nie pstans pal segrenen ae ee eee eee equity shareholders aver the same period declined by 65.3 per cent to CNY2578m. This has. Piece ecco Seater an ati to. CNYD49 in the same period this year. Inthe first nine months of 2022, revenue came in at CNY85,328m, marking a decline of 29.9, ‘percent Yo, after adjustment. Net profit attributable to equity shareholders is down 44.5 per Cent Yor to CNY12.418m, compared to CNY22,389m in the 3921. According to the company, the decline is due not only to rising fuel costs but also a fall sales volumes, Basic earnings ‘per share have fallen from CNY422 to CNY2.34 in the same period this year. SEMEN INDONESIA SIG reports 19% increase in profit in 9M Indonesia-based PT Semen indonesia Group (SiG) posted net profit of ORI. 65tmm (USS105.7m) ln the January-September 2022 period, up 18.9 percent from IDR1.39trn in the 9M21. In the coment division, sales reached 10R22.678trn while other revenues reached 1DR7.506tm. The group's revenue in the nine-month period stood at IDR25.28tm, a minor decrease of 0.2 per cent when compared with 1DR25.330tm reported in the 9M21. The cost ‘of revenue was at IDR17.84trn, up from IDRL7.65Strn in the year-ago period, Gross profit saw ‘2.43 per cent YoY decline to IDRT.343tm in the M22 from 1OR7.676tmn while profit before Jincome tax improved 17.4 per cent YoY to 1DR2.493trn from IDR2.321tmn. “in the first nine months of 2022, SIG consistently succeeded in recording improved ‘company performance amid the challenges of high industrial competition and rising fuel and ‘energy prices” Corporate Secretary, Vita Mahreyni, sai. Interms of reducing its carbon footprint, the company reduced its CO, emissions by 2.1 per cent Yo to 591kg of CO,/tof cement, asit decreased its clinker factor by one per cent t0 63.1 ‘per cent and increased its thermal substitution rate from 1.6 to 7.1 per cent. er DECEMBER 2022 (CEMEX Sales up 13% in 3Q CCEMEX announced continued solid topline ‘rowth in the 3022. Net sales grew by 13 per ‘cent to US$3996m whilenet income reached ‘UsS494m. Pricing was the main driver with ‘cement, ready-mix and aggregates increas- ing by double digits. “Our pricing achievements this year have allowed us to more than offset inflationary costs in dollar terms, but stubbornly high inflation and supply chain headwinds have delayed our ability to regain margins. We ‘are fully committed to margin recovery and will continue our efforts in fourth quarter, ‘as well as into 2023," said Fernando A Gonzalez, CEO of CEMEX. EBITDA and EBITDA margin continued to be impacted by persistent inflationary hheadwinds that outpaced the company’s pricing efforts. Operating EBITDA decreased by six per cent to US$649m, while operating EBITDA margin declined by 3.2 per cent YoY, Free cash flow after maintenance capital ‘expenditures was US$282m, ‘Net sales in Mexico increased by one ‘per cent to USS948m, Operating EBITDA in Mexico decreased 12 per cent to USS255m. CCEMEX's operations in the USA reported net sales of USS1324m, an increase of 19 per cent, with EBITDA up 10 per cent to 'US$197m. In the Europe, Middle Eas, Africa and Asia region, net sales increased 16 per ‘ent to USS1252m, with operating EBITDA ight per cent up at USS1B6m. CEMEX's ‘operations in the South, Central America, {and the Caribbean region reported net sales ‘of US$393m, an increase of two per cent, Operating EBITDA in the region declined 11 percent to Uss90m. ARABIAN CEMENT Revenue up 8% ‘Arabian Cement saw an eight per cent in- crease in revenue to SAR241m (USS64.2m) in the 3022, compared to the same period «2 year earlier, Profit has advanced by 57 per cent to SARSSM, Results for the 9§22 show a six per cent YOY uptick in profit, despite sales declining by six percent. Profits for the 9822 came in at SARLA6m, versus SAR38m in the 9421, according to Arab News. The ise in profits {s being atributed to associate companies’ profits, along with an increase in income from other sources, and lower finance costs, VWa HEIDELBERG MATERIALS Revenue advances 13% YoY in 9M22 Heidelberg Materials revenue in the frst 9622 rose by 12.9 percent in comparison with the ‘previous year to EUR35,802m (9M23: EUR13,996m). Excluding consolidation and exchange rate effects, the rise amounted to 12.3 percent. particular, rice inreasesin all group areas contributed to the revenue growth. Changes to the scope of consolidation of EUR622m had negative effect on revenue, while exchange rate effects of EUR624m had a positive impact. ‘The result from current operations before depreciation and amortisation (RCOBO) fll by EURI78m, oF by 6.1 percent, to EURZT18m (previous year: EURZE96m). The decline in result was attributable to the significantly higher prices of energy and raw materials compared with the previous year, which could only be partially offset by increases in our sales prices. Heidelberg Materials reports that group wide cement and clinker sales volumes fll by six 'er cent to 90M in the 9622, down from 95,7Mt in the 9M2i. In addition to consolidation- ‘elated declines, particularly in North America due tothe sale of group activities in the west region in October 2021, the economic downturn in Europe led to a drop in sales volumes. Excluding consolidation effects, cement and clinker sales volumes decreased by 3.8 percent Deliveries of aggregates fell by 34 percent compared with the same period of the previous year to223.5Mt(9M21:231.3Mt), while sales volumes of ready-mixed concrete dropped by 4.3, ‘er cont to 34.2 Mm? (9M21:35,7Mm". Deliveries of asphalt declined by 24.3 percent to6.2Mt {(9M21: 8.2Mt due to consolidation. For the full-year 2022, Heidelberg Materials continues to expect a strong increase in revenue (ona LL basis) compared with the previous year and now anticipates a result from current operations of between EUR2.35bn and EUR2.55bn. JK LAKSHMI CEMENT JK Lakshmi sees revenue slide 17% YoY India-based JK Lakshmi Cement Ltd has reported consolidated revenue from operations of INR13,735m (US$166.9m) in the quarter ended 30 September 2022. This compares to {NR1G541m in the previous quarter and INR12,088m in the same quarter a year earlier. EBITDA in the September 2022 quarter came in at INRJ83Sm, versus INR2637m in the ‘Previous quarter and INR2116m in the same quarter in 2021. Net profit after tax fell from |INRST2m n the quarter ended 30 September 2021 to INR6LT 9m in the same period this year ‘The previous quarter in 2022 saw net profit of INR21SOm. In terms of costs, power and fuel advanced from INR2793m in the quarter ended 30 ‘September 2021 to INR4188m in the same quarter this year. Over the same timeframe, cost ‘of materials consumed rose from INR1799m to INR2063m, while purchase of stock-in-trade increased from INR783m to INR1205m. Basic earnings per share in the September 2022 quarter stood at INRS.19, down from |WWR9.45 in the previous quarter and INR7.17 in the same quarter in 2021. CECON Trials begin at new Paraguayan plant Cartes Group-owned Cementos Concepcién (Cecon) has begun trials atts new cement plant in ConcepciGn, Paraguay. tis expected that the trial period will ast 2-3 months before actual ‘cement production starts, according to Jorge Méndez, Cecon's manager. The plant will have ‘a capacity of more than 20m bags per year and represents an investment of more USS300m, ‘The plant was built with the support from nine Paraguayan banks. During the peak construction phase 1500 people were employed with about 1000 now remaining. Once ‘up-and:tunning 500 permanent employees will remain, “It isa historic day for the Department of Concepcién and the country because we are starting to commission the equipment and to produce Cementos Concepcién, which will bring many benefits to the country. Paraguay needs many infrastructure works, but the deficit ofthe lack of cement always played against us,” said Mr Méndez. CORPORATE NEWS [ae] ADANI ENTERPRISES Three-fold gain in revenue YoY ‘Adani Enterprises Ltd has posted a three- {old rise in revenue in the second quarter of FY22-23, Revenue for the three-month pe- riod came in at INR387,150m (USS4694m), ‘compared to INR132,180m in the 29FY21- 2. EBITDA over the same timeframe ‘advanced by 68 per cent to INR21,360m, while profit after tax improved by 117 per ‘cent to INR4610m, reports The Times of India, Led by Asia's richest person, Gautam ‘Adani, the company has made inroads into the infrastructure and cement manufacturing sectors earlier this year. ‘Adani Cement Industries currently runs 15 integrated cement plants and 14 grinding wnits. ‘TABUK CEMENT Profit tumbles 81% nan arn as ieee ae ee oe thas risen from SAR174.22m (US$46.5m) to ‘SAR210.11m, However, net profit after zakat eee Seer nee Se re: ak ne ieailee corer Fores sence! Sica Sea ees een ee ne eh ome cece wan fell by 8.14 per cent from SAR8.48m to re ee rapes lo leneaton Seneeie Cae ease dea tcanectrdeat peeps eee ‘by 212.85 per cent from SAR2.49m on the set re oc be ase lower cost of sales over the three-month va DECEMBER 2022 IERia CORPORATE NEWS CARIBBEAN CEMENT Future focus on capacity expansion Jamaica-based Caribbean Cement Co Ltd has posted robust results for the third quarter of 2022 with revenues forthe quarter increasing by 12.7 percent to JMD6.2bn (USS40.3m) from, .JMDS.Sbn in the 3921. Operating earnings were up to JMD1.9bn due to the reduction in the. cost of sales as a share of net sales to 56 per cent from 80 per cent in the same period last ye This reduction was the result of the company’s decision not to undertake its planned ‘major maintenance in the 3922. Last year, the maintenance programme took place in July- ‘August, but this year the programme has been postponed as kiln output was reported to be ‘excellent and the arrival of key parts to carry out the general overhaul was delayed. ‘As for its outlook, the Caribbean Cement Co's management team says its “focus will be to.continue building a sustainable future supported by our capacity expansion project and Improved carbon footprint. Like most companies, we have been impacted by inflationary [pressure caused by the COVID-19 pandemic, and the war affecting eastern Europe, resulting, inhigher fuel, power, and shipping costs.” ‘TANZANIA PORTLAND CEMENT Demand surge pushes profit up 6% in 9M ‘Tanzanian cement producer Tanzania Portland Cement Pic has posted asix per cent increase Jn pretax profit inthe first nine months of 2022 on the back of a surge in domestic and export ‘cement demand. Pretax profit increased by sx percent YoY to T25110.53bn (USS47.4m) in the ‘9622 from TZS94,82bm inthe year-ago period, ‘The company’s cement revenue rose by nine per cent YoY to T2S358.3bn, but the cost of sales of T25226.2bn considerably impacted its net profit. “The high availablity and efficiency ‘same period 2021,” the company sad. EAST AFRICAN PORTLAND CEMENT. EAP launches new cement alternative \Gottne piant and machinery have contributed tothe improved performance compared to the East African Portland Cement Plc (EAP) has launched a new product named Green Triangle Cement that is aimed at minimising the cement manufacturer's carbon emissions. Green Tri- angle Cement has already received the go ahead from the Kenya Bureau of Standards un- der the strength standardisation category of 22.5 even though the company has boosted its ‘strength to over 27 to enable its application in a wider variety of construction projects. The ‘new product aims at providing an alternative for the cement maker's customers, therefore, achieving market centrism as well as helping achieve a better planet by less clinker utlsation ‘and power consumption during its production, “Our customers have fora long time been asking us to introduce an alternative product Jn the market. This together with wide consultations and research advised the introduction ‘of Green Triangle Cement which is more environmentally friendly and will go at a lower cost ‘than Blue Triangle Cement," said the firm's Managing Director, Eng Oliver Kiruba {In July this year, EAP refurbished its kin at a cost of KESO.Sbn (USS4.14m) after 26 years ‘thus enabling its return to market with new more affordable green cement. Thishas helped rive the average retail prices of cement down by 13 per centin the last two months running. ‘The Green Triangle Cement product, which is already in trade, will be applicable inthe preparation of mortar for brick and block laying as well as rendering, plastering and repair works. The product launch also comes at a time when the cement maker i implementing its new five-year strategic plan whose pillars include market centrism and achieving planet. etter ‘Mr Kirubal added that EAP would over time introduce other brands to ensure thatithas a ‘portfolio of at least five brands in the market to give its customers freedom to choose what ‘cement to purchase for different applications. {er DECEMBER 2022 NAJRAN CEMENT Revenue falls 15% Najran Cement has recorded revenue of ‘SARITS.6m (USS1002m) in the opening ‘nine months of 2022, down 15 per cent com pared to the SAR4A1 89m seen inthe M2. Net profit ater zakat and tax declined by 50.26 percent rom SARI29.51minthe M21 to SARG4.42m inthe same period a year lat «Earnings per sharein the 9622 came in at ‘SARO.38 versus SARO.76 inthe same period a year earlier. ‘nthe third quarter of 2022, revenue advanced by 143 per cent Yor to ‘SARI2T.68m, compared to SARL25.88m in the 3021. Net profit after zakat and tax over the same timesrame fell by 227 per cent {rom SAR36.06m to SARZ7.87m. Compared to the 2022, revenue improved by 18.17 per cent from SARO8.05m, while net profit advanced by 110.27 per cent from SARIB.25m, ‘n the first half of 2022, the company reported 2 60.9 per cent drop in net profit {rom SARS3.45m in the 1H21 to SAR36.54m a year later. HAIL CEMENT Revenue up 84% Hail Cement has posted revenue of ‘SAR268.2m (USS71.Sm) in the opening ‘ine months of 2022, up 31.6 per cent com ‘pared to the SAR203,88m seen in the 9621, However, net income fell by 112.5 per cent from SARS7.17m in the 9M21 to a loss of ‘SARS.9m in the same period a year later. Earnings per share in the 9622 came in at -SAR0,06 versus SARO.AB in the same period ‘a year earlier. ‘According to the company, the loss is being attributed to lower average selling prices and higher cast of sales. Losses were also recorded from financial investments at fair value during the current period, says Hail Cement. In the 3022 alone, revenue advanced by {84.2 per cent Yo to SARI03.28m, compared to SARS6.08m in the 3021. Net income over the same timeframe improved by 31.3 per ‘ent from SARS,96m to SAR7.82m, driven by higher sales volumes and value, along with lower general and administrative expenses. Total shareholders’ equity, after minority interest, reached SARLOSbn as of 30 ‘September 2022, compared to SARI.166n inthe same period a year earlier. WVWE CONVEY QUALITY Handling Systems SN Mest RCN etn suitable for chipped tyres and other fuel qualities SPs ence ecm Ra PANT PIR eet Se Rc a ORL ee RC erent Cee mena SRS Me MO ee RC onc) be adjusted to the needs of each step and adapted Peer ec nian Pe ee Puteri een cit&xza emg FINANCIAL UPDATE er eer Sates | Market cap | Closing price ar) ore (Us$m) ern) 4 ~ xi “sunset — Ee es roa eo | a = ec iz | Seniesa [sea a] eae [St = seit] aot [i] a ——————— ae a a nd nee ———————— me | = TS a TR eR DECEMBER 2022 VvCBMI EPC+ Service pan a CS YOUR RELIABLE GLOBAL ONE-STOP ENGINEERING SERVICE PARTNER Pee hibieabel stig fe OE el Rasteriernplementation ‘of public works contracts by the country’s National Road institute (invias) has led tomore than a four-fold increase in vuetion GDP from 2005-2022, with remarkable expansion in the 2010-14 period. This period of rapid growth also extended to 2018 and helped avoid a decline in market activity during 2018-22 despite the strong impact of the COVID-19 pandemic Although recent quarters have seen oad building initiatives such as “Concluir yy Concluie” and *Vias para la reactivacién ylalegalidad vision 2030", dynamism has been modest. Atthe end of the 222, civil ey Bagged cement ace works GOP expanded by three per cent YoY. While this was the highest annual growth rate recorded in the last three quarters it falls short of expectations (see Figure), Meanwhile, construction dynamics have been led by the strength oft buildings sub-sector, where GOP rose by 12.4per cent Yor in the 292 (see Figure 2). In particular, low-income housing, as represented by concrete destined for social housing projects, increased by 82.4 percent YoY in August 2022 (see Figures 3 and 4). Low interest rates, abundant credit and government subsidies (“Mi Casa Ya") were the basis for an expansion, whieh looks set to moderate due to the consolidation of a more challenging operating environment Rising materi Amid th I prices jobal inflationary prices and interest rates are proving to be while the recovery of infrastructure development will bbe key to ensuring the construction and cement sectors continue to advance the main headwinds to progr The impact of these headwinds has not been minor. In recent months the overall price of most construction materials has continued to rise (see Figure 5), Factors Jincluding the rebound in the prices of key energy commodities such as coal and ol (see Figure 6), labour and the US dollar. Colombian peso exchange rate, among others have put pressure on the margins of related industries and have led toa {general rebound in material prices. such as freight and packaging), ‘Asa result, local industry bodies such as the CCI (the Colombian Chamber of Infrastructure}and Camacol (the Latin, Chamber of Commerce ofthe United States) have warned of the impact this ‘may have on the sector. Last month the CCI noted that it was concerned about the high prices of supplies and the effect this ‘may have on the viability of infrastructure projects going forward, Therefore, it has proposed several initiatives to remedy the problem, including the incorporation of price readjustment formulas in new contracts, while calling for areview and adjustment of thelist of products and prices inline withthe market before contracting new projects. Similarly, Camacol has warned about the impact on 250,000 homes already contracted, EMBER 2022 NCR VY| 20 | INTERNATIONAL REPORT nna ine donaon ania amanis ma va tor pe wks Soe GOP pute wr) “ z z= a fa Sao 1 z ow sm ws meee eee a Honing ei mets Serce DF Secithowing ———Non soda hosing sce me 4 Rising interest rates impact increasein the ental Bank's reference Therefore the August figures reveal 9 housing market rate. rnowadjustment inthe considerable og In terms of interest rates, the increase Similar the average ate forhousing of acquisition nd construction rates, derived from the inflationary environment construction climbed to 16: percent after which seems tohave been triggered by the has resulted in higher ates forthe 2 1000bpsincreaseinthe year-to-date, _increasein therelerence ate tonne per acquisition of homes andfor construction Thisimpllesa rise morethan proportional cet. loans. The average home acquisiton _tthatrecorded bythe reference rate. Thissituation confirms that some of the rate stood at 15.4percentattheend However itshouldbenoted that most _reslencethe sector has shown so far to of September 2022 after repsteringan _ofthsincrease materalisedin July ater economic conditions could start fading increase of 100bps compared othe end ite variation during the previous months. ofthe previous month (sce Figures 7nd Allofthe abovehastakenplaceinan Hopes pinned on the 8). Therefor, nthe yearto-date, the rate envronmentinvihichthede-anchoring infrastructure sector? hasincreased by 6496p, an adjustment ofnflation expectations suggeststhat the In ecent years Colombia has been making ‘more than proportional tothe 70bps_periodofratehikesmay be prolonged. __progresinthe structuring ofthe ith i i ix —_——__- is WVa INT - 10 me ia - na iE pe Bal] GPs HY HY] HTH ii Saree marimans: