capital market
Q2: Dangote Cement deploys grinding plants in Ghana, Cote d’Ivoire
…Revenue grows by 17% to N808 billion
By Philemon Adedeji
In a bid to ensure that Cement becomes available in all African countries, Chief Executive Officer of Dangote Cement, Michel Puchercos, has revealed that his company is ramping up production in its Okpella plant, Nigeria and progressing well to deploy grinding plants in Ghana and Cote d’Ivoire.
Ghana and Cote d’Ivoire will join the lists of the following African countries when the grinding plants finally becomes operation. Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).
In the same vein, the Cement Plant on Monday announced, for the second quarter of 2022 a group revenue of N808 billion for the half year ended June 31, 2022, even as winners have started to emerge from the ongoing bag of goodies season 3 promo. According to the cement company’s results made available on the website of the Nigerian Exchange (NGX), revenue rose by 17 per cent, compared to N690.55 billion recorded in 2021. Dangote Cement reported group sales volume of 14.2Mt, consisting of 9.3 Mt done by Nigerian operations while the balance was contributed by operations in other African countries.
Chief Executive Officer, Dangote Cement, Michel Puchercos, speaking on the result said, “Despite the elevated inflation due to a very volatile global environment, the first half of 2022 has been positive. We recorded increases in revenue and EBITDA that drove strong cash generation across the Group. We recorded revenue of N808.0 billion up 17 per cent compared to last year and Group EBITDA of ¦ N373.2Billion, up 6.3 per cent with an EBITDA margin of 46.2 percent.”
Puchercos explained that significant increase in energy and AGO costs are impacting negatively on production and supply of cement products.
He added, “To drive consumer engagement and support demand ahead of the rainy season; we have commenced the 3rd season of our National Consumer Promotion – ‘Bag of Goodies 3.’ On the operational side, we are ramping up production at our Okpella plant and are progressing well to deploy grinding plants in Ghana and Cote d’Ivoire.”
He stated that the volatile international context is strengthening efforts to ramp up the usage of alternative fuels and execution of export-to-import strategy. The company, according to him, is reducing dependence on imported inputs and making the local markets self-sufficient.
“Our continuous focus on efficiency, meeting market demand and maintaining our costs leadership drives our ability to consistently deliver superior profitability and value to all shareholders,” he added.
In a related development, there are confirmed reports that the first batch of winners have emerged from the ongoing National Consumer Promotion – “Bag of Goodies 3.” The winners will be receiving their prizes in a series of events lined up in the coming weeks.
Dangote Cement is Africa’s leading cement producer with nearly 51.6Mta capacity across Africa. A fully integrated quarry-to-customer producer, it has a production capacity of 35.25Mta in its home market, Nigeria. Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.25Mta of capacity across five lines while Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta. The Gboko plant in Benue state has 4Mta while Okpella plant in Edo state has 3Mta. Through recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries.
capital market
NGX: Sell-offs in banking stocks drop value of transactions down 2.60%
Bearish sentiment persisted on banking stocks at the equity market on Friday, making the value of transactions traded on the floor of the Nigerian Exchange Ltd.(NGX) down by 2.60 per cent.
capital market
Financial expert seeks alignment of FG’s fiscal policy with CBN’s monetary policy
A financial expert, Mr Eddie Osarenkhoe, has advised the Federal Government to align its fiscal policy with the Central Bank of Nigeria’s monetary policy to achieve economic stability.
Osarenkhoe, the immediate past President of Finance Houses Association of Nigeria (FHAN), gave the advice while speaking with newsmen on Wednesday in Ota, Ogun.
He attributed the current steady appreciation of the naira to CBN’s reforms and the country’s ability to pay some of its debts.
Osarenkhoe applauded the CBN reforms which, he said, had helped to sustain the steady appreciation of the naira against the dollar.
The financial expert stated that CBN was able to check speculators in the foreign exchange, thus resulting in continuous appreciation of the nation’s currency.
“If the federal government is able to come up with fiscal policy in alignment with that of CBN, it will help the nation’s economy a great deal,” he said.
According to him, the economy needs to improve through exports to enable the country to earn more foreign exchange.
The naira has shown a remarkable strength against the US dollar, trading below N1,000 at the official market.
This development has been attributed to the strategic financial policies being implemented by the President Bola Tinubu-led administration and CBN.
capital market
Investors lose N457bn as bearish sentiment continues
Investors in the Nigerian equities market lost N457 billion at the end of trading on Wednesday.
This followed the dip in the share value of Livestock Feeds, Computer Warehouse Group, International Energy Insurance, and FTN Cocoa Processors on the trading floor today.
After five hours of trading at the capital market, the equity capitalisation crashed to N56.5 trillion from N56.9 trillion posted by the bourse on Tuesday.
Similarly, the All-Share Index (ASI) fell below the 100,000-mark to 99,908.89 from 100,717.21 achieved by the bourse the previous day.
The market breadth was negative as 17 stocks advanced, 26 declined, while 78 others remained unchanged in 9, 074 deals.
Ikeja Hotel topped the gainers’ list with +10.00 percent to close at N7.26 from its previous N6.60 per share.
Fidelity Bank, Academy, Morison, and Prestige also increased their share prices by 9.88 percent, 9.77 percent, 9.71 percent, and 9.26 percent respectively.
On the flip side, Livestock Feeds, Computer Warehouse Group, International Energy Insurance, and FTN Cocoa Processors led other price decliners as they shed 10.00 percent, 9.79 percent, 9.79 percent and 9.72 percent each off their share prices.
UBA recorded the highest volume by trading 55.013 million shares valued at N1.28 billion in 1,092 deals followed by Zenith Bank with 47.029 million shares worth N1.69 billion traded by investors in 907 deals.
Access Corp traded 44.986 million shares valued at N789 million in 845 deals.
On the value index, Zenith Bank recorded the highest value for the day trading stocks worth N1.69 billion in 907 deals followed by UBA which traded equities worth N1.284bn in 1,092 deals.
Access Corp traded stocks worth N789 million in 845 deals.
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