Cemex Holdings Philippines Inc. (CHP) said Friday net income in 2021 declined 26 percent to P726 million from P985 million a year ago mainly because of foreign exchange losses.
Cemex said in a disclosure to the stock exchange, Friday full year sales increased six percent to P20.9 billion on higher volumes. Cemex’s domestic cement prices, however, fell two percent due to product mix.
“Despite the challenges of COVID-19, adverse weather and rising input costs, we are proud of our accomplishments in 2021. We embraced health and safety, enhanced customer experience, and advanced in our sustainability targets,” said Cemex president and chief executive Ignacio Mijares.
The company expects cement volumes to continue recovering this year, with construction activities to remain a driver of the country’s economic growth.
“The 2022 national budget is the highest in Philippine history, 11.5 percent higher than the 2021 national budget, with 17 percent allocated to the Department of Public Works and Highways and Department of Transportation,” said Cemex.
The company allocated P6.21 billion in capital expenditures for 2022, with P4.76 billion set aside for the expansion of Solid Cement plant in Antipolo, Rizal and P1.45 billion for maintenance and other capital spending. Completion of the $356 million expansion plan has been delayed to March 2024 due to construction delays.
The company in December terminated the contract with the previous party that covers the construction and installation of a 1.5-million, metric-ton-per-year integrated cement production line. The termination was due to delay in the implementation of installation works.
Cemex this month engaged two new contractors, Atlantic Gulf and Pacific Co. of Manila Inc. and Betonbau Philippines Inc. to complete the new cement production line.
Shares of CHP on Friday dropped 4.6 percent to P1.04.