Holcim-Azerbaijan Re-distributes Profits

A general meeting of shareholders of Holcim (Azerbaijan) has been convened. There on March 12 the shareholders are to distribute the profit for 2014.

The representative of JSC Rena Tahirova told Turan that while the data on the results of financial and economic activity (annual production of cement, the proceeds profit, etc.) of the enterprise are specified.

According to the State Statistics Committee, in 2014 the volume of cement production in Azerbaijan amounted to 2 million 979 thousand tons, which is 40.5% more than in the previous year. Of these, 510 thousand tons accounted for by LLC Norm. This company since last year has fully established its own production of clinker (5 000 tons / day) and in 2015 it plans to reach full capacity - 2 million tons per year.

Annual consumption of cement in Azerbaijan at the potential of local production of 5.2 million tons is approximately 4.4 million tons. Part of local production is illegal. According to the State Customs Committee, in 2014 the volume of imports of cement and clinker amounted to $ 106 million, which is 30% less than the previous year.

The cement industry due to high wholesale and retail prices is one of the cost-effective ones in Azerbaijan. For example, in 2013, Holcim (Azerbaijan) gained from the sale of products 176 500 000 manat (without VAT). Cost of products at the same time amounted to 69 million manat. Taking into account the various operational, administrative, transport and so on costs, the net profit amounted to 51 million 588 thousand manat, which is completely focused on the payment of dividends. Earnings per share par value of 20 manat was 160%.

Controlling stake (66%) of the shares Holcim (Azerbaijan) belongs to Holcim Ltd. 10% of the shares are at the European Bank for Reconstruction and Development and the state-run Azerbaijan Investment Company. Shareholders comprise three legal entities: Holcim Auslandbeteiligungs GmbH – 3.6%, Azer Invest Company - about 2%, and Chelsea Capital -0.02%. Individuals (about 600 people) of Azerbaijan own 8.4% of the shares. -----08B