Lafarge assures on positive outlook despite losses spurred by forex policy
Lafarge Africa Plc has assured stakeholders that the N28 billion unrealized exchange loss that arose as a result of the recent naira devaluation will have no immediate impact on cash flow of the company.
Lafarge had through a profit warning issued via the NSE explained that the N28 billion unrealized exchange loss arising from USD borrowings, related to United Cement Company of Nigeria Limited (UNICEM) were set up prior to Lafarge’s acquisition of UNICEM and consisted of 310 million USD shareholder loans and 85 million USD external loans at the first time of the devaluation.
The company further affirmed that “it is very positive about the future outlook for UNICEM, which is strategically located in Mfamosing, Calabar, in Cross River State and is a major cement plant in the South-South and South-East Region of Nigeria.”
The plant has a cement capacity of 2.5mm tones and will double capacity with the commissioning of a 2.5mm tones line during the second half of 2016.
Lafarge Africa which recently concluded the issuance of a 60 billion Naira bond, to refinance UNICEM’s Naira debt is currently assessing refinancing part of the USD debt.
