fbpx
Connect with us

Business

Shareholders hail Dangote over Cement’s N272.6bn dividend

Published

on

DSC7174: L-R: Group Managing Director/CEO, Dangote Cement Plc, Michel Puchercos; Dr. Faruk Umar, Shareholder and Chairman, Dangote Cement Plc, Aliko Dangote during the 12th Annual General Meeting (AGM) of Dangote Cement Plc, held in Lagos on Wednesday, May 26, 2021

Shareholders of Dangote Cement Plc on Wednesday commended the Management of the company for an impressive performance despite the economic challenges in the year under review.

Unanimously, the shareholders approved N272.6 billion as dividend, translating to N16 per share for the year ended December 31, 2020. The 16 per cent increase in the company’s revenue led to a 36 per cent increase in its earnings per share of N16.14 as against N11.29 in 2019.
The shareholders at the virtual 12th Annual General Meeting (AGM) held in Lagos commended the management for the full disclosure provided for the year, share buyback process and the various donations made at COVID-19 pandemic.
Speaking on behalf of shareholders, the founder, Independent Shareholders Association of Nigeria, Sir Sunny Nwosu commended the company for attaining a trillion-naira revenue growth, saying that the Company is moving in the best way of corporate governance.

 

He appealed to the Company to prevail on its numerous distributors who arbitrarily sell cement at very high costs as against the real factory price, thereby making so much profit for themselves.

 

Also, a shareholder, Non Awoh applauded the board for the consistency in dividend payout, urging the board to consider payment of dividend twice a year.

 

Speaking to shareholders, Chairman of Dangote Cement Plc, Aliko Dangote assured the shareholders of better returns always, noting that the company is doing everything possible to create wealth for its shareholders and other stakeholders. He further said despite the challenging year surrounding by COVID-19 pandemic, 2020 was a record year for us across board.

 

“Dangote Cement hit the N1 trillion mark in term of revenue. Group revenues were up 16 per cent compared to 2019. We record Group cement sales of 25.7 million tonnes (Mt) and revenues of N1.034 trillion. Most notably was our record high EBITDA of N478.1 billion, up 20.9 per cent compared to 2019…”

 

Dangote said that the board maintains the 2019 dividend of N16 per share, reinforcing its commitment to maximising shareholder value.

Also, the chairman said, “In 2020, we commissioned our Apapa and Onne export terminals in Nigeria and commenced clinker exports to West and Central Africa. The vision for our exporter strategy is to make West and Central Africa cement and clinker self-sufficient, with Nigeria as the main supplier and exporter. We also remain focused on meeting the demand in Nigeria and as such, we increased our capacity by three metric tonnes (MT) on Obajana and we commissioned our gas-fired power plant in Tanzania.

 

“Our Nigerian domestic operations sold 15.6Mt, up 14.3 per cent year-on-year, growing ahead the market. This strong volume growth was enhanced by our successful innovative national consumer promotion ‘Bag of Goodies- Season 2’, lower rains in the Q3 compared to the previous year and the low interest rate environment driving strong demand for real estate assets and supporting the construction sector.

APC Crises : Gov. Ganduje backs Danzago as battle for governorship gathers Momentum

“Pan-Africa volumes were up by 4.4 per cent to 10.0Mt despite the various lock-downs and restrictions in 2020. The Pan-African region achieved a record high EBITDA of N71.3 billion, up 49.0 per cent, notably supported by strong performance in Ethiopia and Senegal.”

 

On outlook for 2021, Dangote said the Company remains optimistic about the future, saying that the board is considering all strategic and financial options for the company. “We will continue to improve our efforts in sustainability by applying ‘The Dangote Way’ to the seven Sustainability Pillars of our business culture and operations. We are also focused on increasing capacity in the Nigerian market and building grinding plants across West and Central Africa to be fed clinker from Nigeria.”

 

He noted further that, “We welcome the Africa Free Trade Agreement which supports our export strategy and long-term growth in Africa. Dangote Cement is well positioned to capture demand driven by the economic recovery in 2021, as the region recovers from the impact of the pandemic and all our countries of operation return to growth.”

 

Also, the Group Managing Director/CEO of Dangote Cement Plc, Michel Puchercos said that despite the impact of the COVID-19 pandemic, 2020 was a record year for Dangote Cement across board.

 

On share buyback, he stated that Dangote Cement is constantly exploring ways of creating value for its shareholders, in addition to its consistent dividend and capital appreciation. He said: “The company has also been pursuing several options such as the share buyback programme to return cash to its shareholders.”

He added that, “Our strategy is to make the company more attractive to investors in the near term and for future long-term growth.”

Puchercos said that, “The outlook for the company is very positive as we are focused on meeting the demand locally and across Africa. We look forward to the African Continental Free Trade Agreement supporting our export strategy to West and Central Africa.”

 

#

Business

Lubricants and Nigeria’s economy

Published

on

 

By Cosmas Chukwunonso Nwobi

Every engine depends on oil, which serves as the heat transfer medium and lubricant for moving parts. It stops wears and damages from happening because the moving parts won’t be rubbing against one another.

The primary consumers of engine oil in Nigeria are those who own cars, generators, enterprises, tricycles, and motorcycles. Diesel and gasoline engines both utilize various grades of engine oil. Diesel engine oil is used to maintain heavy vehicles (diesel vehicles), small and large generators, as well as passenger vehicles (light vehicles). Petrol engine oil is used to maintain passenger vehicles (light vehicles).

The overall annual requirement for lubricating oils across the globe is projected to be 50 billion liters, or 60 percent automotive and 40percent industrial. However, industrial lubricants account for more than 70% of total global gross revenues and profit margins.

According to projections, Nigeria, with a gross domestic product of N150 billion in 2013 and more than N450.37 billion by the end of Q1 2021, is the third-largest user of lubricating oils in Africa, consuming 700 million liters of the substance per year (or 1 percent of the global demand).

The aggregate profit margins of the blending plants were N45 billion in 2013 and N120 billion in the first quarter of 2021. Their total assets are projected to be worth N20 billion. This indicates that domestic production of lubricating oils meets 75 percent of the country’s total demand, with imports from specialist marketing companies providing the remaining 25percent.

You might also be interested to know that, over the projected period (2021-2026), the market for lubricants in Nigeria is anticipated to develop at a compound annual growth rate (CAGR) of 1.54%, reaching 300,399.52 kilo tons by 2026. which demonstrates that the market for automotive lubricants in Nigeria is anticipated to grow to $683 million by 2023.

This demonstrates that the significance of engine oil cannot be overemphasized and that lubricant production would be a very profitable business endeavor that would considerably boost Nigeria’s economy.

However, this industry was adversely affected by Nigeria’s slowing economic growth. The 2016 recession brought on by the sharp decline in global oil prices was the root cause of the downturn. Oil prices started the year at $36.76 a barrel and reached a high of $54.06 for the year. The lack of foreign exchange had a serious negative impact on the ability of various lubricants manufacturing companies to conduct business and imposed severe costs on key sectors of the country, which further cascaded into all areas of the economy. Given that many players in the industry imported large volumes of base oil and other raw materials needed to blend lubricants at the time, this meant that the shortage of foreign exchange affected all sectors of the economy.

However, the investment landscape is currently changing and Nigeria’s lubricant industry, if properly managed, will surely triple it’s current position in a few years to come. This is due to large oil marketers taking advantage of the lubricants market’s deregulation and lack of significant government intervention.

I commend the effort of the Nigerian Government so far in reducing import charges for Lubricant Blending plants firmly advocate for the need of a driving and I strongly advocate that more can be done in this area since Nigeria’s lubricant business has great prospects for investors. Should we succeed, early investors will also benefit from pioneer status and a five-year tax break.

I firmly believe that better consumer education, cooperation with transportation companies, increased consumer knowledge, and the provision of higher-quality lubricants at lower prices would help Nigeria’s lubricant manufacturers expand and make more money.

#
Continue Reading

Business

Best choice Specialist Hospital Launches First Intensive Infant Phototherapy Machine In Kano

Published

on

 

_”A Beacon of Progress in Northern Nigeria!”_

In a groundbreaking move, Best Choice Hospital has taken a significant leap forward in pediatric care with the introduction of the Infant Phototherapy Unit, a groundbreaking technology designed to treat jaundice and prevent brain damage in newborns.

In a statement signed by Auwal Muhammad Lawal Group Managing Director of the Hospital noted that pioneering technology enables medical professionals to transfuse blood with unparalleled precision, safety significantly enhancing treatment outcomes for children.

…. Noted that the innovative machine boasts a remarkable 70% radiance output and features a standard phototherapeutic unit, eliminating the need for blood transfusions.

#

Auwal reiterated that introduction of this advanced state-of-art machine marks a significant milestone in Best Choice Hospital’s ongoing commitment to pediatric excellence.

With its advanced capabilities, the Infant Phototherapy Unit can effectively treat jaundice in a targeted manner, providing a beacon of hope for families.

“We understand the distress and hardship that comes with pediatric medical conditions”

“That’s why we’ve invested on this to ease the burden on families and provide children with the best possible chance at a healthy life”. Said Lawal

As the first of its kind in Northern Nigeria, this cutting-edge technology offers a comprehensive treatment solution for infants, covering the entire body with its optimal wavelength.

Dr. Abdulmalik Saminu, a leading medical expert expresses optimism that the development reinforces Best Choice Hospital’s position as a leader in pediatric care, providing families with renewed hope and confidence in the treatment of their loved ones.

Saminu further conveyed heartfelt gratitude to the hospital’s proprietor for his tireless efforts in making this life-changing technology available.

With the Infant Phototherapy Unit, families no longer need to travel abroad for medical treatment, as Best Choice Hospital now offers world-class care right in their own backyard.

Continue Reading

Business

Naira depreciates to N1,635 in parallel market

Published

on

 

The Naira yesterday depreciated to N1,635 per dollar in the parallel market from N1,625 per dollar last weekend.

However, the Naira yesterday appreciated to N1,585.77 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM.

#

Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N1,585.77 per dollar from N1,598.56 per dollar last weekend, indicating N12.79 appreciation for the naira. The volume of dollars traded (turnover) in the market declined by 58.8 percent to $71.18 million from $172.8 million traded last week Friday.

Consequently, the margin between the parallel market and NAFEM rate widened to N49.23 per dollar from N26.44 per dollar last weekend.

Continue Reading

Trending