Lafarge Records Loss of N30.18bn In Six Months

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

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

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.”