CEMEX to reach an investment-grade capital structure of 3 times

CEMEX revealed that its execution of strategic objectives under its operation resilience programme more speedily than expected earlier, a consequence of crucial management, including stable market performance. The group is confident that it would accomplish an investment-grade capital structure of 3 times leverage by this month-end. Currently, CEMEX has set up a new leverage target within its Operation Resilience goals, including regaining an investment-grade credit rating. However, due to the significant year-over-year growth over the last three quarters, coupled with a favourable medium-term outlook, the company is increasing its 2021 EBITDA guidance to $3.1 billion, a 26% jump from the previous year and now expects double-digit EBITDA growth in 2022. CEMEX anticipates producing nearly $400 million of annual EBITDA in 2023 of its bolt-on purchases, margin improvement projects, as well as its 10 million metric tons of latest cement capacity. These new additions are expected to be finished by 2023, with 5 million metric tonnes (mt) of cement capacity in Mexico, 2.3 million in the South, Central America and the Caribbean region, 1.5 million in the Philippines, and 1 million in Europe. All these additions would be structured to take into consideration CEMEX's climate action priority. Fernando A Gonzalez, the CEMEX CEO, told the media the company is reaching its long-awaited goal of an investment-grade capital structure by the end-month. Moreover, he said we are beginning a period of sustainable growth and have the best market outlook in years. Image Source Also read: Adani Enterprises enters cement market, forms Adani Cement Also read: JSW cement forays into ready mix concrete business