Les Ciments de Bizerte (SCB) Reports Disappointing Q4 2024 Results
Revenue Plummets 70% to 5,870 Mtnd Due to Production Suspension
Les Ciments de Bizerte (SCB) has published its activity indicators for the last quarter of 2024, revealing a 70% decline in revenue (excluding VAT) to 5,870 Mtnd. The revenue generated during the period from October to December comes exclusively from the local market.
The reason for this sharp decline is well-known. Clinker production was suspended throughout the third quarter of the year due to the absence of petroleum coke, the only possible energy source for the plant's operation. Financial difficulties continue to weigh heavily on the company, rendering it unable to import this material. As a result, activity was limited to grinding small quantities of imported or locally purchased clinker and unloading petroleum coke ships for the benefit of other cement plants. The generated revenue is very low and does not meet the company's treasury needs.
Cement Production Down 62.3% to 28,627 Tonnes
SCB's cement production was limited to 28,627 tonnes, a 62.3% year-over-year decline. Lime production also recorded a significant decrease of 59.5%, equivalent to 725 tonnes compared to the same period in 2023. This decline is attributed to the lack of demand for lime on the national market and in the sector.
Full-Year Revenue Down 65.6% to 31,429 Mtnd
For the entire year, revenue totaled 31,429 Mtnd, a 65.6% decline. SCB's debt remains high, with long- and medium-term credits amounting to 122,897 Mtnd, including 25,673 Mtnd in interest. Management credits stand at 28,507 Mtnd. The cement company has been unable to honor its commitments to its creditors.
Management Expects Sustainable Recovery in 2025
According to management, the current exercise will see a sustainable recovery in cement and clinker production. It is worth noting that investors who have invested in this title since its IPO have never made a profit. We wish for the recovery of a company that has all the assets to regain its position as a national leader in the sector.
