Grupo Orbis 1Q 2022 Net Income Jumps 30% Year-on-Year
Tuesday, 24 May 2022 09:33 Written by Roberto Peckham
Medellin-based paints, chemicals and hardware giant Grupo Orbis – which last month finally became 100% owned by Amsterdam-based Akzo Nobel – announced May 13 that its first quarter (1Q) 2022 net income rose 30%, to COP$7.6 billion (US$1.9 million).
“Grupo Orbis companies start the year with positive results that integrate the efforts in our commercial strategy, including mitigation of the impact of increases in costs of raw materials and transportation, efficient management of expenses, sufficient liquidity and working capital and the generation of value for our shareholders,” according to the Orbis filing with Colombia’s Superfinanciera oversight agency.
Sales during 1Q 2022 rose 41% year-on-year, to COP$445.7 billion (US$112 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) rose 30%, to COP$33.5 billion (US$8.4 million).
The “Pintuco” paints division saw sales jump 27% year-on-year, to COP$272.5 billion (US$68.7 million), while EBITDA rose 14%, to COP$23.2 billion (US$5.8 million),
The “Mundial” home-and-garden-supply division sales grew 16%, to COP$45.3 billion (US$11.4 million), while EBITDA also rose 16%, to COP$769 million (US$194,000), both growing by 16%.
As for its chemicals divisions -- “Andercol” in Colombia and “Poliquim” in Ecuador -- sales rose 66% year-on-year, to COP$170.8 billion (US$43 million), while EBITDA soared by 146%, to COP$14.2 billion (US$3.6 million), according to the company.
Grupo Sura 1Q 2022 Net Income Jumps 109% Year-on-Year
Saturday, 14 May 2022 05:54 Written by Roberto Peckham
Medellin-based multinational health, insurance and financial services giant Grupo Sura announced May 13 that its consolidated net income for first quarter (1Q) 2022 rose 109% year-on-year, to COP$442 billion (US$113 million),
Consolidated revenues likewise rose 25% year-on-year, to COP$6.9 trillion (US$1.76 billion), according to the company.
“This level of results was driven by revenues obtained from associated companies as well as double-digit growth on the part of [insurance subsidiary] Suramericana,” mainly in the life and health-care segments, according to Sura.
Grupo Sura also cited gains from its partial holdings in Medellin-based banking giant Bancolombia and its Medellin neighbor, foods giant Grupo Nutresa.
Operating expenses increased 22.3% for the latest quarter, “due to an increase with Suramericana’s claims rate, specifically in the car segment, given difficulties with the auto parts supply chains,” according to the company.
“On the other hand, this increase in expense was also due to our subsidiaries resuming their investments and projects, which had been temporarily suspended due to the pandemic,” the company added.
Grupo Sura’s varied-sector investment strategy “demonstrates, once again, the advantages of having a diversified, well- balanced investment portfolio as well as the benefits of our efficiency efforts,” added Sura Chief Finance Officer Ricardo Jaramillo.
The Suramericana division saw a 21.4% increase in written premiums during 1Q 2022, totaling COP$5.6 trillion (US$1.42 billion), “given the positive levels of performance obtained with the Life (16.7%), Health Care (27.2%) and Property-Casualty (15.8%) insurance segments,” while also enjoying an 89% jump in investment income, at COP$376 billion (US$96 million), according to the company.
While auto accident claims rose, “this increase was partially mitigated by the reduced impact of the pandemic across the region, as Covid claims declined by 60.5% compared to the same quarter last year and by 11.4% compared to 4Q 2021,” according to Sura. .
Meanwhile, the Sura Asset Management investment services division saw a 1.9% dip in fee and commission income, “due to issues such as the regulatory cap on commissions charged in Mexico along with losses in value on the global capital markets, which impacted the funds' own investments (reserve requirements). This was compounded with the depreciation of Latin American currencies against the dollar, which produced a negative exchange difference,” according to Sura.
Conconcreto 1Q 2022 Profits Jump 76% Year-on-Year
Friday, 13 May 2022 19:16 Written by Roberto Peckham
Medellin-based construction giant Conconcreto announced May 13 that its first quarter (1Q) net income rose 76.8% year-on-year, to COP$22 billion (US$5.3 million), from COP$12.6 billion (US$3.06 million) in 1Q 2021.
Gross revenues rose 70%, to COP$237 billion (US$57.6 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) rose 31.8%, to COP$29.8 billion (US$7.2 million).
In its U.S. operations, Conconcreto now boasts a hefty US$229.9 million construction backlog.
Meanwhile in Colombia, Conconcreto’s “Devimed” highway concessions on the Medellin-Bogota highway and on the “Oriente” (east of Medellin) highway between Llanogrande and Rionegro saw operating earnings rise 3.2% and EBITDA by 1.1% year-on-year.
Meanwhile, the “doble calzada oriente” (DCO) project east of Medellin – tentatively scheduled for construction start in October 2022 – aims to add another group of investors, with Conconcreto already holding a 60% participation share.
As for the “Via 40 Express” highway project being developed between Bogota and Girardot, this project saw an 86% drop in EBITDA for 1Q 2022 because of year-on-year differences in compensation payments during the Covid-19 crisis in the year prior, the company added.
Construcciones El Condor Posts COP$9.4 Billion Net Loss for 1Q 2022
Friday, 13 May 2022 17:55 Written by Roberto Peckham
Medellin-based construction giant Construcciones El Condor on May 13 posted a COP$9.4 billion (US$2.28 million) net loss for first quarter (1Q) 2022, an improvement over the COP$51 billion (US$12.4 million) net loss in 1Q 2021.
Gross revenues were nearly flat year-on-year, at COP$164 billion (US$40 million) in 1Q 2022 versus COP$165 billion (US$40.1 million) in 1Q 2021, according to the company.
“Revenues for this period are mainly driven by the EPC [engineering, procurement and construction] contracts with the Concesiones Autopista Rio Magdalena, Ruta al Mar y Pacífico Tres, and the construction contracts with the Ruta al Sur Concession and Invias (El Toyo),” according to El Condor.
“Operating costs as of March 2022 were COP$133 billion [US$32 million], decreasing 9% compared to the same period in 2021. Gross profit was COP$28 billion [US$6.8 million], equivalent to a gross margin of 17.36%.
“Operating profit amounted to COP$22.4 billion [US$5.4 million], equivalent to 5.45% of revenues.
“Earnings before interest, taxes, depreciation and amortization (EBITDA) reached COP$33.4 billion [US$8.1 million], with an EBITDA margin of 20.76%,” up from 12.91% margin in 1Q 2021, the company added.
“This result is due to the ascending pace of execution that all work fronts have and is in line with the EBITDA margins generated by the company in the years prior to the pandemic and the transition of the renewal of the backlog that it faced in 2021,” the company added
Meanwhile, in March 2022, Construcciones El Cóndor won contracts to continue works on the Magdalena River Highway Project 2. “The absolute maximum price of the new intervention amounts to COP$756 billion [US$184 million], of which the company will receive an advance payment of COP$70 billion [US$17 million],” according to the company.
Commenting on the Colombian economy and its infrastructure sector, El Condor added: “Market analysts project that the variation in the Gross Domestic Product for the first quarter of 2022 compared to the same period in 2021 would be 7.8%. This growth would be mainly driven by the agriculture and real estate services sectors. The construction sector is projected to have a stable behavior for this quarter.”
At the end of 1Q 2022, El Condor reported a construction backlog for contracts worth COP$3.47 trillion (US$844 million).
GCM Mining (nee Gran Colombia Gold) 1Q 2022 Profits Decline Year-on-Year
Friday, 13 May 2022 11:13 Written by Roberto Peckham
Toronto-based GCM Mining announced May 12 that its first quarter (1Q) 2022 adjusted net income fell to US$14.8 million, from US$21.9 million in 1Q 2021.
“Net earnings in the first quarter 2021 included the benefit of a US$56.9 million gain on loss of control of Aris, a US$42.8 million gain on financial instruments and a US$8.9 million gain on sale of the Zancudo Project, offset partially by US$9.8 million of transaction costs incurred by Aris in connection with the loss of control in early 2021,” according to GCM, formerly known as Gran Colombia Gold.
The 1Q 2022 adjusted results also reflect a US$4 million decrease in income from operations together with a $2.5 million increase in finance costs and an increase in income tax expense due to the tax rate increase in Colombia effective in 2022," according to the company.
Commenting on the results, GCM CEO Lombardo Paredes stated: “We have started-off 2022 on a positive note, meeting our expectations for production, costs and cash flow in the first quarter.
“We are on track to once again meet our annual production guidance for 2022. Following the favorable mineral reserve and resource update at Segovia [Antioquia], our exploration and mine geology teams have continued to execute the ongoing drilling campaigns at our four producing mines and the brownfield areas in our mining title.
“At our Toroparu Project in Guyana, we are advancing the infill drilling and the pre-construction activities. We are on track to finalize the prefeasibility study in the third quarter of 2022, at which point formal construction of the project is expected to commence.”
GCM’s 1Q 2022 gold production from its Segovia operations totaled 49,951 ounces, up 2% over 1Q 2021, and the company expects annual production this year at between 210,000 and 225,000 ounces of gold.
Meanwhile, GCM's new polymetallic recovery plant constructed in 2021 at Segovia produced approximately 252,000 pounds of payable zinc and 338,000 pounds of payable lead during 1Q 2022, according to the company.
Consolidated revenue, “all of which was sourced from the Segovia operations in the first quarter of 2022, amounted to US$101.3 million compared with $101.9 million in the first quarter last year, which included $5.1 million from Aris Gold Corporation -- prior to the loss of control of Aris on February 4, 2021,” according to GCM.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for 1Q 2022 dipped slightly year-on-year, to US$45.2 million, from US$46.3 million in 1Q 2021, according to the company.
“GCM Mining’s balance sheet remained strong with a cash position of US$315.1 million at March 31, 2022,” according to the company.
“The company also has US$138 million of funding available for construction of its Toroparu Project in Guyana through a precious metals stream facility with Wheaton Precious Metals (Caymans) Ltd. Other than scheduled interest payments, the company has no maturities of its long-term debt in the next 12 months,” the company added.
Enka Colombia 1Q 2022 Net Income Steady Year-on-Year
Friday, 13 May 2022 09:37 Written by Roberto Peckham
Medellin-based textiles and plastics-recycling specialist Enka Colombia announced today (May 13) that its first quarter (1Q) consolidated net income was essentially flat year-on-year, at COP$13.79 billion (US$3.35 million), versus COP$13.78 billion (US$3.35 million) in 1Q 2021.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) dipped slightly, to COP$17.1 billion (US$4.15 million) in 1Q 2022, versus COP$17.5 billion (US$4.25 million) in 1Q 2021.
Consolidated operating income likewise came-in essentially unchanged at COP$155.78 billion (US$37.8 million) for 1Q 2022, versus COP$155.97 billion (US$37.89 million) in 1Q 2021.
“The year 2022 begins with a solid behavior of the demand, which has allowed us to maintain good sales levels in strategic markets,” according to Enka. Positive results came from an “increase in international prices as a result of the high prices of the petrochemical chain and high global demand, and at a higher rate exchange” between the Colombian peso and the U.S. dollar, according to the company.
While EBITDA remained steady as measured in pesos, “the EBITDA margin showed a decrease of 15%, to 11%, due to the effect of transferring higher production costs to sales prices,” according to Enka.
On other 1Q 2022 fronts, Enka noted investments of COP$59 billion in a new “EKO-PET” recycling plant, “advancing under estimated schedules and budgets.”
Assets during the quarter rose by COP$48 billion (US$11.6 million), to COP$732 billion (US$177.8 million), while liabilities rose COP$33 billion (US$8 million), to COP$253 billion (US$61 million). “The debt ratio ends at 0.6-times EBITDA, increasing compared to the end of 2021 (0.15-x EBITDA) -- but at healthy levels for future investments,” according to the company.
During 1Q 2022, exports totaled US$18.9 million, accounting for 47% of total sales -- better than the 40% share seen in 1Q 2021, once including the impact of polyethylene terephthalate (PET) waste-plastic sales.
For all of its “green” waste-plastics recycling businesses, Enka saw a 45% year-on-year over-all hike in revenues, “mainly due to higher international prices that offset a 5% lower sales volume,” according to the company.
“The capture of plastic bottles grew by 25% compared to 1Q 2021, fulfilling the growth plan of the collection network with a view to supplying the-entry-into operation of the new 'EKO-PET' plant,” according to Enka.
Meanwhile, the “EKO-Fibras” line saw sales dip 7%, mainly because of an increase in “Asian imports at low prices and closure of Coltejer” textile production in Medellin. “However, the exports grew 19%, driven by new developments for Geotextiles, made from bottles of colors that are difficult to recycle,” according to Enka.
On the other hand, the “EKO-Polyolefins” line saw sales rise by 28%, mainly for the local market rather than exports.
Textile/Industrial Businesses
Once excluding the production of virgin PET, textile revenues grew 51% year-on-year, “mainly due to the strong increase in international prices. Exports reached US$17.2 million, which represents 63% of the income from this line and 91% of the company’s total exports,” according to Enka.
The industrial yarns line saw a 6% hike in volume, “with growth in both canvas for tires as well as technical yarns, thanks to the good behavior of the demand in United States and the recovery of the Brazilian market,” according to Enka.
As for textile filaments, this line grew 6.3%, “mainly in exports, both in Argentina and Brazil, which offset the reactivation of Asian imports Asian in the local market,” according to the company.
Grupo Argos 1Q 2022 Net Income Jumps 65% Year-on-Year
Friday, 13 May 2022 08:21 Written by Roberto Peckham
Medellin-based cement, electric-power, real-estate and airport/highways conglomerate Grupo Argos announced May 12 that its first quarter (1Q) 2022 net income rose 65% year-on-year, to COP$315 billion (US$77 million).
Earnings before interest, taxes, depreciation and amortization (EBITDA rose 28%, to COP$1.2 trillion (US$293 million), while revenues rose 23.6%, to COP$4.6 trillion (US$1.12 billion), according to the company.
“Increased revenues from the sales of goods and services during 1Q 2022 is mainly explained by increased contributions from the Celsia electric power group (+COP$328 billion/US$80 million), Cementos Argos (+COP$260 billion/US$63 million), and the Opain concessions business (+COP$139 billion/US$34 million),” according to Grupo Argos.
“Increased costs and expenses for the period (+ 24% YOY) were due to increasing variable costs due to higher sales volumes during the period and to cost inflation occurring in all sectors, but particularly in the cement business where the cost of fuel has increased substantially.
“Financial expenses for the quarter increased 27.5% year-over-year due to higher index rates even with a reduction in overall debt during the period,” the company added.
Real Estate Business Boost
“The real estate business achieved historical figures in 1Q 2022, with positive net cash flow and EBITDA,” according to Grupo Argos.
“This is a milestone for the real estate business as all property taxes are paid during the first quarter and deeding plots is difficult because of a lack of free-and-clear certificates.
“This was achieved thanks to property tax management by the team, where this expenditure was reduced by 11%, and deeding of a plot for building a Four Seasons Hotel in Baru [near Cartagena].
“This business deal, signed in November 2021, required timely management of the land division license with the Cartagena authorities. This procedure was approved in December 2021, and, after meeting certain legal deadlines, we were able to divide and sell the property,” netting Argos COP$40 billion (US$9.7 million).
“We also highlight the signing of a promise of sale for COP$17 billion [US$4 million] for a housing project in Barranquilla of which we received COP$5 billion [US$1.2 million) this [first] quarter. The above figures plus customer interest and ongoing negotiations allow us to foresee a positive year for the real estate business,” the company added.
Odinsa Concessions Revenues Dip
As for the Odinsa airport/highway concessions business, gross revenues dipped 15% year-on-year.
Revenues from the road concessions business fell 30% year-on-year, to COP$157 billion (US$38 million). “This decrease is mainly due to deconsolidation of the concessions in the Dominican Republic concessions, which were terminated in advance at the end of 2021,” according to Grupo Argos.
“All other concessions in Colombia -- Túnel de Oriente, Autopistas del Café, Malla Vial del Meta, and Green Corridor -- made positive contributions to year-over-year variations in revenue, except for Pacifico 2, with a 33% decline in contributions via the equity method,” according to Argos.
In the airport concessions business, Odinsa saw 1Q 2022 year-on-year gains in revenue, EBITDA, and net income “as a result of an evident recovery in passenger traffic,” according to the company.
Over-all, Grupo Argos consolidated financial debt ended 1Q 2022 at COP$1.9 trillion (US$464 million), down 35% year-on-year.
“This reduction corresponds mainly to deconsolidation of the debt from Autopistas del Nordeste and Boulevard Turístico del Atlántico and early payment of debt in Odinsa Holding and Odinsa SA,” according to the company.
During the latest quarter, cost of debt in as expressed in U.S. dollars rose 39 basis points, while cost of debt expressed in COP increased 475 basis points “explained by the increases Bank of the Republic interest rates, higher inflation, and other index rates,” according to Grupo Argos.
Bancolombia 1Q 2022 Net Income Soars 219% Year-on-Year
Thursday, 12 May 2022 12:13 Written by Roberto Peckham
Medellin-based multinational banking giant Bancolombia announced today (May 12) that its first quarter (1Q) 2022 net income skyrocketed 219% year-on-year, to COP$1.73 trillion (US$421 million), from COP$542 billion (US$132 million) in 1Q 2021.
Interest income grew 26% year-on-year, while interest expense rose only 13.7%, thus yielding a net 31% gain.
Assets likewise grew 15% year-on-year, to COP$291 trillion (US$70.8 billion), while liabilities rose 13.7%, to COP$259 trillion (US$63 billion), according to the company.
Gross loans amounted to COP$222 trillion (US$54 billion), up 12.9% year-on-year. When excluding the COP/U.S. dollar effect, the loan bookings rose 12.1%.
During the latest quarter, the Colombian peso appreciated 5.7% against the U.S. dollar, but had depreciated 2.1% against the dollar over the last 12 months. The average peso/dollar exchange rate was 4.4% higher in 1Q 2022 versus 4Q 2021 and 9.9% higher in the last 12 months.
Meanwhile, “retail loans continue with an increasing dynamism while gaining share within the total portfolio on a consolidated basis,” according to Bancolombia.
“Net interest margin expanded from 5.3% in 4Q 2021 to 6.0% in 1Q 2022. This performance is due to higher interest rates driven by the current contractionary monetary policy in Colombia.
“Total provision charges net for 1Q 2022 was COP$267 billion [US$65 million], which indicates a low cost of risk when compared to a normalized level, led by loan-losses provision releases in line with better asset quality trends,” the company added.
During the last 12 months peso-denominated loans grew 14.3% and dollar-denominated loans grew 7.8%.
At the end of 1Q 2022, Bancolombia’s “Banco Agricola” operations in El Salvador, “Banistmo” in Panama and “BAM” in Guatemala represented 26% of total gross loans.
“Gross loans denominated in currencies other than COP -- generated by operations in Central America, the international operation of Bancolombia Panamá, Puerto Rico and the U.S. dollar- denominated loans in Colombia -- accounted for 33.3% of the portfolio, and decreased 3.8% in the quarter when expressed in COP terms,” according to the company.
“During 1Q 2022, as seen in previous quarters, a growing trend on the loan portfolio persists at the consolidated level, increasing across all geographies.
“Banco Agromercantil [BAM] denotes the highest quarterly growth (6.1% when measured in U.S. dollars), showing good results in all loan categories. The increase of 11.3% in the consumer portfolio is in-line with the strong performance from 2021, gradually gaining market share in Guatemala.
“The operation in Colombia shows a 3.1% growth in the loan balance, again with a positive performance in individuals. When analyzing the annual variation, products such as payrolls and credit cards stand out in retail, as well as mortgages growing 15.9%.
“Banco Agricola reports a positive performance across all segments, growing 1.2% (measured in U.S. dollars) during the latest quarter. The credit portfolio continues to show a balanced share in commercial and retail, representing 43% and 42% respectively within the total loan book, without major changes over the past 12 months.
“Banistmo reveals a 0.1% growth (measured in U.S. dollars) during the quarter. Originations maintain an encouraging trend not only in commercial loans but also in retail and home-lending.”
As for electronic digital-banking efforts, “Bancolombia shows a positive trend in line with 2021 results. As of March 2022, the bank has 6.8 million active digital customers in the retail app, as well as 17.6 million accounts in its financial inclusion platforms -- 6.1 million users in ‘Bancolombia a la Mano’ and 11.5 million in ‘Nequi,’” the company added.
Medellin-based multinational gold miner Mineros SA announced May 9 that its first quarter (1Q) profits fell to US$10.47 million, from US$13.77 million in 1Q 2021.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) also dipped to US$41 million, from US$45 million in 1Q 2021.
Revenues dipped 1% year-on-year, to US$124.7 million, although the average price per ounce of gold sold rose 6% year-on-year, to US$1,884, according to the company.
Despite the profits decline, Mineros president Andres Restrepo added that the company is “on track to achieve its projection for 2022,” having already produced more than 66,000 ounces of gold so far this year, up 1% over 1Q 2021.
While cash costs for producing gold were up 8% year-on-year, all-in sustaining costs (AISC) actually dropped 6% year-on-year.
The company’s main operations are in Antioquia, Colombia (alluvial mining), Nicaragua (Hemco, underground mining) and Argentina (Gualcamayo, open-pit mining), with “significant gold exploration projects in Chile (La Pepa),” according to Mineros.
Cementos Argos 1Q 2022 Profits Fall 60% Year-on-Year
Tuesday, 10 May 2022 08:27 Written by Roberto Peckham
Medellin-based multinational cement/concrete giant Cementos Argos announced May 9 that its first quarter (1Q) net income dropped 60.6% year-on-year, to COP$55 billion (US$13.46 million).
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) also dipped 17.8%, to COP$437 billion (US$107 million), but gross revenues actually increased 11.2% year-on-year, to COP$2.57 trillion (US$629 million), according to the company.
Cementos Argos produces cement and ready-mix concrete (RMC) in 16 countries including the U.S., Colombia, and Caribbean-Central America (CCA) region, with total annual capacity of 23.1 million tons of cement and 14.7 million cubic meters of concrete.
Explaining the profits dip, Argos cited cost increases of COP$395 billion (US96.7 million), whereas price increases didn’t keep pace, at COP$330 billion (US$80.7 million).
“Cost increases were mainly related to raw materials and energy, which had a consolidated negative impact of COP$120 billion [US$29 million] and COP$80 billion [US$19.5 million] respectively. Other costs associated with freight, distribution, maintenance and labor also impacted the cost of sales,” according to the company.
On the upside, “dynamic conditions in our key markets have led to the continuation of a solid volume performance and the highest sequential cement price increase in the last seven years, allowing us to achieve all-time high quarterly revenues,” according to the company.
“Cement dispatches decreased 1%, while ready mix volumes increased 6.3% on a comparable basis year over year,” the company added.
U.S. Volumes Rise
In its U.S. operations, Cementos Argos realized “annual increases in cement and ready-mix volumes of 7.3% and 2.6%, respectively on a comparable basis. Prices across the region were increased in January and generated a 9% increase in the cement business and 9.5% in ready-mix,” according to the company.
“We remain optimistic regarding the willingness of the current [U.S.] government to close the gap of underinvestment in infrastructure, through the approved bipartisan infrastructure bill that will come into effect in the mid to long term,” according to the company.
Colombia Exports Rise 31%
In Colombia operations, cement volumes were flat year-on-year, but exports rose 32.3%. Ready-mix concrete sales also rose 13.4% year-on-year, but adjusted EBITDA fell 18%, according to the company.
“The solid demand conditions in Colombia continued during the first three months of the year, driven by the retail segment, residential construction and infrastructure projects,” according to Argos.
“Despite lower-than-expected volumes during the first few weeks of the year, we evidenced a strong recovery, which led to reaching in March the highest figure of monthly cement dispatches for Cementos Argos during the past five years.
“The residential segment in Colombia continues delivering positive signals. During the quarter, social and non-social housing sales grew 6.4% and 5.5% respectively year-over-year, despite a challenging comparison base. Additionally, housing starts grew 11% and remain on the highest level in seven years.
“On infrastructure projects, we remain optimistic due to the positive advances being made on ‘fourth-generation’ [4G] projects, 5G projects that are expected to begin their construction phase by 2023, the Bogota Metro which is underway and is projected to generate an important demand during the next three to four years, and other projects such as Puerto Antioquia, a port located in the Uraba region with an estimated investment of US$700 million, that is currently set to begin its construction phase and its contract is in the process of being awarded to bidders,” the company added.
Caribbean-Central America Region Prices Rise
“Positive market conditions in the [Caribbean-Central America] region continued, leading to the continuation of solid pricing dynamics. Cement prices increased double-digit sequentially and 6% year over year,” according to Argos.
However, “cement dispatches decreased 11% compared to the same period of last year, due to operational difficulties in Haiti and Dominican Republic, the government transition in Honduras and lower trading volumes.
“In Honduras, cement dispatches for the quarter were 9% lower versus the same period of last year as self-construction remained strong but the transition to a new government slowed down demand in public infrastructure construction.
“In Dominican Republic we evidenced solid demand conditions but mechanical difficulties in our cement mill resulted in a 5% decrease in cement dispatches.
“Haiti experienced lower volumes during the quarter due to technical challenges at the plant and social unrest in the country combined with complications in fuel supply. Additionally, trading volumes decreased 11% during the quarter, mainly due to the increase in exports, which allowed us to supply our Puerto Rico operation from Cartagena, but we postponed two shipments due to high FOB prices,” the company added.
