Cemex acounts for rising debt costs
July 28, 2020
Mexican cement company says it could pay up to an additional $50 mln to service its debt
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Mexican cement company Cemex said it expects to pay an additional $25 million to $50 million to service its debt this year as it spends roughly $200 million on capital expenditures, according to a presentation of its second quarter results.
"As we become more comfortable on outlook, we will redeploy cash to pay down debt," Cemex said in the presentation, adding that it expects its COVID-19 cost initiatives, excluding maintenance, to remain in place through the end of the year.
Cemex had $13.6 billion in total debt at the end of March this year, a 19% increase on the same time last year. It also had $2.83 billion in cash, a jump of 831% year-on-year, according to its financial report on the second quarter.
Since then, the company issued $1 billion in new 2027 notes at 7.375% in early June, although Fitch Ratings had cut its ratings to BB- from BB just days before.
Cemex posted a net loss of $44 million for the second quarter this year, compared to $155 million in net income in the same period last year, as sales sank 14% to $2.91 billion and EBITDA declined 11% to $554 million.