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East African Portland Cement Company holds its 83rd Annual General Meeting Nairobi, 18th February 2016…

EAPCC today held its AGM and announced a Kshs7.3 billion profit before tax at Portland Sports Club, Athi River, Nairobi.

The profits were mainly earned from unrealised gain on revaluation of investment property, amounting to Kshs 7.2 Billion and income from compensation for compulsory acquisition of SGR land amounting to Kshs. 836m and forex gains of Kshs. 175m on its hedged Japanese Yen loan.

The results were announced following the conclusion of the process of land revaluation as required by the International Accounting Standards.
According to the Chairman, Mr William Lay, the investment property, consisting of two parcels of land in Athi River, valued at Kshs 9.4 Billion up from Kshs 2.25 Billion the previous year.

Although the Company made an operating loss of Kshs 577 Million due to a long plant shutdown - lasting 3 months for major plant upgrade - the Chairman was upbeat about the future of the Company.

“The Company has completed several projects that are expected to impact positively on the performance going forward. The already completed projects include the installation of an additional cement packer to enhance cement dispatch, an air pollution control system to ensure production activities comply with the environmental laws and new cranes to improve cement mills feeding system,” said the Chairman, Mr. Bill Lay.

Following this turnaround, the Company is looking to implement a Medium Term Strategic Plan which, according to the Managing Director, Mr. Kephar L.Tande, will see the Company, among other things, further improve its aging plant, restructure its finances and acquire strategic limestone reserves in Kajiado and Kitui counties.

Other noted investments lined up to improve production will include installation of a new Clinker Cooler for the Kiln which is designed to stabilize Clinker production, expected to be commissioned this year.
“The focus going forward is to steer the company back to profitability,” added Mr. Lay.

The Company is facing major competition from its rivals, now numbering six, and this has seen cement prices reduce further by 5% during the year. EAPCC faces the challenge of reducing its cost and improving its efficiency. “We expect the Technical Services Agreement with Lafarge Holcim to immensely assist in realizing internal production efficiency,” said Mr. Lay.

The Company spent approximately Kshs 1.2 billion in new investments in the plant during the year. This was largely funded through bank loans, adding to the cost of finance, which went up by 16% to Kshs. 369m.

“The major infrastructural projects and the expanding real estate sector will continue to drive industry growth in the foreseeable future”
said the CEO Mr.Tande.

African Portland Cement Company holds its 83rd Annual General Meeting
Nairobi, 18th February 2016…

EAPCC today held its AGM and announced a Kshs7.3 billion profit before tax at Portland Sports Club, Athi River, Nairobi.

The profits were mainly earned from unrealised gain on revaluation of investment property, amounting to Kshs 7.2 Billion and income from compensation for compulsory acquisition of SGR land amounting to Kshs. 836m and forex gains of Kshs. 175m on its hedged Japanese Yen loan.

The results were announced following the conclusion of the process of land revaluation as required by the International Accounting Standards.
According to the Chairman, Mr William Lay, the investment property, consisting of two parcels of land in Athi River, valued at Kshs 9.4 Billion up from Kshs 2.25 Billion the previous year.

Although the Company made an operating loss of Kshs 577 Million due to a long plant shutdown - lasting 3 months for major plant upgrade - the Chairman was upbeat about the future of the Company.

“The Company has completed several projects that are expected to impact positively on the performance going forward. The already completed projects include the installation of an additional cement packer to enhance cement dispatch, an air pollution control system to ensure production activities comply with the environmental laws and new cranes to improve cement mills feeding system,” said the Chairman, Mr. Bill Lay.

Following this turnaround, the Company is looking to implement a Medium Term Strategic Plan which, according to the Managing Director, Mr. Kephar L.Tande, will see the Company, among other things, further improve its aging plant, restructure its finances and acquire strategic limestone reserves in Kajiado and Kitui counties.

Other noted investments lined up to improve production will include installation of a new Clinker Cooler for the Kiln which is designed to stabilize Clinker production, expected to be commissioned this year.
“The focus going forward is to steer the company back to profitability,” added Mr. Lay.

The Company is facing major competition from its rivals, now numbering six, and this has seen cement prices reduce further by 5% during the year. EAPCC faces the challenge of reducing its cost and improving its efficiency. “We expect the Technical Services Agreement with Lafarge Holcim to immensely assist in realizing internal production efficiency,” said Mr. Lay.

The Company spent approximately Kshs 1.2 billion in new investments in the plant during the year. This was largely funded through bank loans, adding to the cost of finance, which went up by 16% to Kshs. 369m.

“The major infrastructural projects and the expanding real estate sector will continue to drive industry growth in the foreseeable future”
said the CEO Mr.Tande.

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