5. - Secil

TUNISIA
Cement and artificial lime
consumption was 6.3
million tons in the year
under review, up 3%
over the previous year.
Increased sales by
Société des Ciments de
Gabès was not enough
to offset significant increases
in the price of thermal
fuel and electricity.
As a result, EBITDA fell
to 13.9 million euros,
down by approximately
15%. Cement output
and sales was at an alltime
high for Société des
Ciments de Gabès.
We would like to again
mention that the
cement market in Tunisia
continues to be regulated,
in contravention of the undertaking by
the country’s government and specifically
mentioned as a precondition in the terms
and conditions for the privatization of
Tunisia’s cement companies. The market
was due to be deregulated in May 2002,
and the Government imposed another
administrative set price adjustment in June
2008. This last increase was grossly insufficient
to offset rising energy costs, notably
increased electricity and gas prices imposed
by state owned utility companies.
The Group’s companies in the readymix
concrete market recorded an excellent
overall business performance with a marked
improvement over 2007.
LEBANON
Stabilization of the political situation and
improved security levels had a very positive
effect on the economy in general, and
especially in the construction sector.
Cement consumption totalled 4.2 million
tons, up 7% on the previous year.
Growing sales and successful plant
management allowed Sibline to overcome
1. Overview
significant
increases in
energy costs and
to record a good
operational performance,
not entirely
reflected in the consolidated
financial statements
of the Group (denominated
in euros), due to the
devaluation of the USD against
the euro.
Soime, the company which operates in
the ready-mix concrete segment, also posted
a positive performance in the year.
ANGOLA
The Angolan economy and the construction
industry continue to post sustained
growth levels.
In this context, Secil Lobito once again
recorded excellent performance reflected
in the growth in turnover (+ 43%) and in
EBITDA (+ 95%).
The financing and supply agreements
for the construction of the new production
line are in the process of finalization,
and construction work is
expected to get underway during
the first half of 2009.
The investment for the new
production line will total 190 million
USD, including a power generation
unit. With the new production
line, Secil Lobito will have annual production
capacity of half a million tons of clinker and
a million tons of cement.
CAPE VERDE
Whilst Secil Cabo Verde recorded a significant
drop in business due to logistical difficulties
in the market caused by the high
level of maritime freights, ICV – Inertes de
Cabo Verde recorded a positive performance,
turning around the negative trend recorded
in recent years.