|10 October, 2019

Egypt listed firms unviel gas re-pricing on its performance

Some of the listed companies that work in cement, steel, aluminum, copper, ceramics, and porcelain industries unveil the impact of natural gas re-pricing on its performance

ArabFinance: Some of the listed companies that work in cement, steel, aluminum, copper, ceramics, and porcelain industries unveil the impact of natural gas re-pricing on its performance, as follows:

- Arabian Cement Company (ACC) (ARCC) says that it uses coal and alternative energy and it does not use the gas.

- Alexandria Cement - (Titan) (ALEX) stated that natural gas re-pricing won't affect its revenues because it uses the coal instead.

- Egypt Aluminum (EGAL)declared it pays about EGP 145 million, based on a million British Thermal Unit (BTU) that costs USD 7, for consuming 32-43 million cubic meters annually.

In the case that the million BTU prices $5.5, the company would pay of EGP 114 million for the annual consumption, saving EGP 31 million.

- Egypt’s Ezz Steel (ESRS) said s that the decline of the million BTU to USD 5.5 from USD 7, will decrease the gap between the costs and the final prices of products.

- Misr National Steel – Ataqa (ATQA) announced the decline of gas prices won't affect the production costs since the company uses mills with limited gas impact. Moreover, the gas re-pricing has a positive impact on the integrated factories because they use it in DRL phase.

The Egyptian Cabinet approved the recommendations of the Ministerial Committee to re-price natural gas for some industries on September 30, 2019, according to the Cabinet’s Facebook page.

The natural gas price for the cement industry becomes $6 per million British Thermal Unit (BTU), up from $4 per million BTU, and $5.5 per million BTU, down from $7 per million BTU, for the iron and steel, aluminum, copper, ceramics, and porcelain industries.

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