Vassiliko Cement first-half profit rises to €23.2 million

Higher cement sales boost Vassiliko profitVassiliko Cement Works Public Company Ltd on Friday reported a first-half profit of €23.23 million, up from €19.51 million a year earlier, as stronger domestic cement sales and improved clinker export prices lifted both revenue and profitability. The company said its board of directors approved the consolidated interim financial statements for the six months ended June 30, 2026, at a meeting held on July 30, 2026. It added that an extract from the interim financial statements will be published in the local press, while hard copies will not be mailed to shareholders. Revenue increased to €80.39m during the first half of 2026, compared with €77.48m in the corresponding period of 2025. According to the company, the improvement was mainly driven by higher domestic cement sales and better clinker export prices. Gross profit also rose, reaching €29.13m, compared with €25.50m in the first six months of 2025. The company said that although fuel costs increased during the reporting period, the impact was partly offset by lower electricity costs and continued initiatives aimed at improving production efficiency and containing operating expenses. It added that it remains focused on the gradual replacement of traditional fuels with alternative fuels, alongside targeted investments designed to improve energy efficiency and reduce carbon emissions. Other operating income also increased compared with the same period last year and included insurance proceeds of €890,000 relating to damage to the quay wall and onshore installations caused by a vessel allision in June 2024. The company said these factors combined to lift first-half profit to €23.23m, representing an increase of almost 19 per cent from the €19.51m recorded a year earlier. Looking ahead, Vassiliko Cement said the outlook for the remainder of 2026 remains uncertain, primarily because of continuing geopolitical developments. It said the operating environment remains volatile, with geopolitical tensions continuing to create uncertainty in energy and fuel markets, shipping routes, supply chains and overall market confidence. The company warned that although these factors may increase production costs, it believes it is well positioned to absorb their impact. It also said it does not expect any significant slowdown in Cyprus’ domestic construction sector during the second half of the year. The company also pointed to continuing uncertainty surrounding the European Union’s Carbon Border Adjustment Mechanism (CBAM) and the EU Emissions Trading System (EU ETS). Although CBAM entered its definitive phase on January 1, 2026, the company said recent proposals by the European Commission indicate that the phase-out of free emissions allowances for affected sectors could be slowed, with full implementation potentially delayed by four years from 2034 to 2038. However, it stressed that these proposals remain subject to the European legislative process and have not yet been finalised. As a result, the timing, pace and financial implications of the transition framework remain uncertain. The company said it has been closely monitoring developments relating to CBAM, EU ETS requirements and emissions allowance costs. It added that the anticipated slowdown in the implementation timetable, together with the evolving regulatory framework and continued geopolitical and geoeconomic uncertainty, requires it to reassess the timing and priorities of its related strategic initiatives. Vassiliko Cement said it remains committed to cost management, operational efficiency and sustainability investments, including projects aimed at improving energy performance, increasing the use of alternative fuels and reducing dependence on conventional fossil fuels. According to the company, these measures are expected to strengthen its long-term resilience and competitiveness while allowing management to adjust its strategy as market conditions evolve.