Fujairah Cement Industries

On June 19, 2024, Fujairah Cement Industries (P.J.S.C) disclosed the resignation of board member Mr. Khalid Al Muhaidib, who represented the Government of Abu Dhabi - Department of Finance. Mr. Al Muhaidib was a non-executive, independent member. The resignation was accepted and became effective on June 14, 2024, following a request from the Abu Dhabi Government - Department of Finance. The disclosure was signed by Mohamed Bin Hamad Bin Saif Alsharqi, Chairman.

On June 19, 2024, Fujairah Cement Industries (P.J.S.C) disclosed the resignation of a non-executive, independent board member from the Department of Finance - Government of Abu Dhabi. The resignation was accepted and became effective on June 14, 2024. The reason for the resignation was the termination of membership upon the member's request. The disclosure was signed by Mohamed Bin Hamad Bin Saif Alsharqi, the Chairman.

The main office of Fujairah Cement Industries (FCI) will be relocated to the FCI Factory on Sheikh Zayed Bin Sultan Al Nahyan Road in Dibba Fujairah. This change will take effect on June 17, 2024. For any inquiries related to the new head office, contact can be made via email at ho@fujairahcement.com, hofci79@fujairahcement.com, or hofci79@fciho.ae, or by phone at +97192444011 or fax at +9712444016. The announcement is signed by the Chairman, Mohamed Bin Hamad Bin Saif Alsharqi, and a copy has been sent to the Securities and Commodities Authority (SCA).

The Abu Dhabi Securities Exchange's Market Operations Surveillance Department has disclosed the results of a Board of Directors meeting for Fujairah Cement Industries (PJSC). The meeting took place on May 20, 2024, with a 91% quorum of the 10 board members present. The board discussed the company's current situation with EY (Ernst & Young), the company's financial advisor, and also addressed normal operational matters. These discussions had no impact on the company's share price.

The Market Operations Surveillance Department of the Abu Dhabi Securities Exchange has disclosed a board meeting for Fujairah Cement Industries (PJSC) on 20/05/2024. The meeting will start at 11:00 AM and will include a general discussion about the company's current situation with EY (Ernst & Young) financial advisor, which won't impact the company's share price. Normal operational matters will also be discussed. The General Manager, Saeed Ahmed Ghareib Alser eidi, has been copied in the disclosure.

The text refers to the independent auditor's review report and condensed consolidated interim financial statements of Fujairah Cement Industries PJSC and its subsidiary. The report covers the financial performance for the three-month period ending on March 31, 2024. The information provided is unaudited.

Fujairah Cement Industries PJSC reported a loss of AED 38,341,852 for the three months ending 31/03/2024. This significant loss was primarily due to the suspension of the company's clinker and cement sales during Q1-2024, resulting in a 99.67% decline in revenue compared to Q1-2023. Other financial details include a gross loss of AED 94,850, selling & distribution expenses of AED 577,099, general & admin costs of AED 2,154,691, production idle cost of AED 24,075,115, and finance costs of AED 10,705,866. The company's total assets stood at AED 1,299,128,191, with equity & reserves at AED 383,500,657. The cash and bank balance at the end of the period were AED 6,639,286. Key performance indicators showed a gross loss ratio of -34.05%, a net loss ratio of -13,763%, a cash loss ratio of -8,019%, and a loss per share of -0.108 UAE Dirhams.

Fujairah Cement Industries PJSC reported accumulated losses of AED. 168,862,575 for Q1-2024, marking a continuation of losses since 2020. The company's accumulated losses to capital ratio stands at 47.45%. Causes for these losses include increased costs of coal/energy, lowered selling prices of clinker, revenue decline, heightened logistics and finance costs, provisions for obsolete/slow-moving inventory, inventory write-downs of finished & semi-finished products, and impairment on PPE of the subsidiary. The company's operations were suspended from 01.01.2024 due to major refurbishment activities and extended due to financial liquidity constraints. The board has engaged EY Consulting LLC to assist in restructuring and assessing options for resumption of operations.