Bizerte Cement Company (SCB) Reports Disappointing Q3 2023 Results
The Bizerte Cement Company (SCB) published its Q3 2023 activity indicators yesterday, with a delay of over two weeks. The company's revenue for the period from July to September 2023 plummeted by 77.4% to 5,271 MTND, with all revenue coming from the local market.
The reason for this sharp decline is well-known. Clinker production was suspended for the entire third quarter due to the lack of petroleum coke, the only possible energy source for the plant's operation. Financial difficulties continue to weigh heavily on the company, making it unable to import this material. As a result, SCB's cement production was limited to 16,796 tons, a decrease of 81.7% year-over-year. The company was only able to engage in clinker grinding activities using imported or locally purchased clinker, as well as unloading petroleum coke ships for the benefit of other cement factories.
Since the beginning of the year, revenue has been 25,558 MTND, also down by 65.6%.
SCB's debt remains high, with long- and medium-term credits amounting to 122,926 MTND, including 26,212 MTND in interest. Management credits total 28,056 MTND. The cement company has been unable to meet its commitments to its creditors.
According to management, the fourth quarter will see the resumption of production. We certainly hope so, especially since the company has been plagued by endless problems for many years.
