Cemex Holdings Philippines (CHP) announced today that its consolidated net sales decreased by 17%, reaching PHP 15.1 billion during the first nine months of 2020, versus the comparable period in 2019. Sales decreased by 6% year-over-year in the third quarter, reaching about PHP 5.5 billion. The result showed the negative impact of the COVID-19 pandemic on its operations.
Free cash flow for the nine-month period ending September 30, 2020 for CHP was a negative 365 Million Pesos.
A substantial portion of the proceeds raised from CHP’s Stock Rights Offering in the first quarter were used to repay debts owed to CEMEX ASIA, B.V. Because of the proceeds of the Stock Rights Offering CHP was able to proudly announce that as of September 30, 2020, CHP’s total debt was at PHP 13,510 million, a decrease of around PHP 6.6 billion from December 31, 2019.
While the 9M20 results of CHP was exciting, what is more exciting is how CHP will replace the newly resigned member of the Board of Directors, Mr. Larry Jose Zea Betancourt. Mr. Larry Jose Zea Betancourt tendered his resignation as a member of the Board of Directors and member of the Audit Committee, which resignation was accepted by the CHP Board of Directors during its meeting on 26 October 2020. It was disclosed that Mr. Zea resigned because has been re-assigned to another position in the CEMEX organization.
Mr. Larry Jose Zea Betancourt was a replacement for Maria Virginia Ongkiko Eala who retired from CHP on April 2, 2019. When the Board of CHP accepted Ms. Eala’s resignation on April 2, 2019, CHP right there and then replaced her with Mr. Zea.
It is quite surprising that the CHP’s Board did not immediately replace Mr Zea upon their acceptance of his resignation.
Signs are emerging that a deal to sell CHP to SM heir Henry “Big Boy” Sy Jr. is in the making. How Mr. Zea will be replaced by the Board of CHP will shed light on the matter. How the resigned Director is replaced is more interesting than the financial results. It is exciting to follow the election and approval of the new Director in CHP.
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