On Thursday, HeidelbergCement, the world's No. 2 cement maker, forecast a negative impact on its business in 2022 due to a significant increase in energy costs due to Russia's invasion of Ukraine.

Like steel and chemicals, cement generation is among the more energy-intense production processes, making power costs a critical factor in deciding whether firms can hit their profit targets.

On Thursday, HeidelbergCement told the media in its annual report that the costs for energy have grown drastically within a few days, and the further development cannot be foreseen presently.

Due to the present very volatile impacts on the energy markets, the Managing Board assumes a negative hit also on the key performance indicators. Shares in the company, which also revealed a 2021 dividend proposal of 2.40 euros per share, were 1.4% lower at the bottom of Germany's benchmark index.

The firm still confirmed its 2022 outlook, forecasting a substantial increase in sales and a slight rise in the result from current operations before consolidation and exchange rate effects. It cautioned that it was presently impossible to render a reliable forecast of their operating business activities, indicating the lack of clarity on how the Ukraine crisis will develop.

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