Cemex posts P2.69-B profit for last year

Listed cement manufacturer Cemex Holdings Philippines Inc. (CHP) reported a P2.69 billion profit last year as sales of cement pick up amid the construction boom.

CHP said its consolidated pro forma operating earnings before interest, tax, depreciation and amortization (Ebitda) also surged 11 percent to P6.7 billion last year from P6.1 billion the previous year.

Net sales increased 2 percent year-on-year to P25.37 billion from P24.93 billion due to higher output of domestic cement in volume and higher prices of the product. “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 and Chief Executive Officer Pedro Jose Palomino. CHP, meanwhile, obtained a $280-million loan facility with BDO Unibank Inc. consisting of a fixed rate tranche of up to $112 million and a floating rate tranche of up to $168 million.

The proceeds from the loan facility agreement signed last Feb. 1 with BDO Unibank will refinance bulk of CHP’s outstanding long-term loan with New Sunward Holding B.V., which is an affiliate.

Its cement manufacturing subsidiaries have been operating in the Philippines for over 17 years with well-established brands, such as “APO,” “Island,” and “Rizal,” each of which has a multi-decade history in the country. CHP is an indirect subsidiary of CEMEX, S.A.B. de C.V., one of the largest cement companies in the world based on annual installed cement production capacity. RIZA LOZADA