Babatunde Ojo: No. I’m asking you when you said it will be stable. What number would it be stable at for Q4, is it the average for 2022?
Humberto Nadal: Yes, I think we should be around the volumes of last year.
Babatunde Ojo: No, I’m not about volumes. I’m talking about the EBITDA margin. You said it will be stable until Q4 when — Yes. Can you hear me?
Humberto Nadal: 25% EBITDA margin for the whole year.
Babatunde Ojo: 25%, you said?
Humberto Nadal: Yes. 25%.
Babatunde Ojo: Okay. That’s very helpful. And in terms of pricing, are you putting in any additional pricing? What sort of price growth are you looking at for 2023?
Humberto Nadal: I think we’ve been a very aggressive in terms of market or vessel price last year. We remain like that at the beginning of this year. We’re going to — a lot depends on how inflation behaves in our region, specifically in the country. But we’ll always be sure that the price is going away that we retain our profitability levels.
Babatunde Ojo: Yes. So, you said you put in pricing earlier this year in January.
Humberto Nadal: Yes.
Babatunde Ojo: Like can you give a sense of what percentage you did on average in that period?
Humberto Nadal: Around 3%.
Babatunde Ojo: Around 3%. Okay. That’s very helpful. And last one for me is Pure kind of reach 100% clinker capacity utilization from your disclosure. And I’m just wondering what next after that? Are you looking at increasing clinker capacity prior? Or since Pacasmayo is coming up, you don’t need to do anything on Pure. I just wanted to understand what you’re doing in terms of capacity expansion or optimization going forward.
Humberto Nadal: That’s a very good question with. I think it’s a very stressful answer. Once the Gen number four, we will be able to produce around 3.5 million tons of cement with our own clinker capacity. which is what we will have with Clink number four. So, we will be at 100% capacity as soon as we turn on the . What goes on from there on, it depends on demand. We don’t foresee a post coming in the future because even if demand goes up 5%, 10% or 15% going to 3.7 million tons, it’s always much smarter to import a little bit of clinker than setting up a new plant to be used or only 20% capacity. So, I don’t foresee any projects.
Babatunde Ojo: Hello?
Babatunde Ojo: Yes. I lost you for you at the last. But I think I get it that you don’t foresee any expansion in the near term. I think that’s clear.
Humberto Nadal: No.
Babatunde Ojo: Yes. So, in terms of CapEx, so how much are you looking at this year? Because Pacasmayo is still ongoing. What kind of level are you looking at in aggregate for CapEx for 2023?
Humberto Nadal: We normally spend about $20 million.
Babatunde Ojo: Okay. Alright. Thank you.
Humberto Nadal: We’re talking sustaining CapEx…
Babatunde Ojo: Yes. But what is your total CapEx for 2023, including Pacasmayo continued expansion.
Humberto Nadal: Around $50 million, ’20 or ’22 will be of our sustaining CapEx and…
Babatunde Ojo: Okay. I mean, of course, it cos a little bit again, but I think I had the number of $50 million. Last one for me is on your balance sheet, on your debt, right? You mentioned that you were — that you sort of refinanced part of your debt, I didn’t get that part. If you don’t mind repeating what you did in terms of financing, it would at a higher cost. So, should we expect higher interest expense going forward?
