Dangote Cement Plc has posted a profit after tax of N200.521bn for the financial year ended December 31, 2019 as against a profit of N390.325bn posted in 2018, representing a drop of 48.63 per cent.
Profit before tax stood at N250.479bn from N300.806bn posted in 2018, accounting for a drop of 16.73 per cent. Revenue was N891.674bn as against N901.213bn in 2018.
The board proposed a final dividend of N16 per share subject to ratification by the shareholders at the coming Annual General Meeting.
Speaking on the result, the Group Chief Executive Officer, Dangote Cement, Joe Makoju, said, “Dangote Cement maintained strong financial performance despite a low growth environment, pricing pressure and increasing competition in key markets.
The Nigerian operations maintained volume and revenue performance in a challenging environment.
Export sales were affected by the border closure in the second half of 2019. Looking ahead, I expect an increase in volumes in 2020 as we commence clinker exports via shipping from Nigeria. “Pan-Africa volumes were slightly up notably supported by Tanzania and Senegal.
I am glad to report that Tanzania contributed positively at EBITDA level. In 2020, I believe Dangote Cement will see an increase in profitability in Pan-Africa driven by higher volumes and further efficiency improvements. “As I retire from Dangote Cement, I am proud to have watched it grow from a local producer back in 2007 to a major force in global cement production.
Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement, serving neighbouring countries.
“I wish Mr Michel Puchercos all the best as the new Group Chief Executive Officer of Dangote Cement.”
Dangote Cement is Africa’s leading cement producer with nearly 46Mta capacity across Africa. It is a fully integrated quarry-to-customer producer, with a production capacity of 29.25Mta in its home market, Nigeria.
Obajana plant in Kogi state, Nigeria, is the largest in Africa with 13.25Mta of capacity across four lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta and Gboko plant in Benue state has 4Mta.
Dangote cement in a report obtained from Reuters on Wednesday said that its export volumes in 2019 had been affected by border closure in its home country of Nigeria, as the government tries to combat smuggling.
Nigeria closed its land border in August to curb smuggling of rice and arms, which it says threatens efforts to boost local production and security and also to generate state revenues through import duties, the customs service has said.
Nigerian stock market opens with N119 billion loss
Nigerian equities market resumed trading on Monday with a loss of 0.91 per cent as a result of profit taking in some blue chips.
Speficially, the All-Share Index which opened the week at 25,182.67 lost 228.35 points or 0.91 per cent to close at 24,954.32.
Accordingly, Month-to-Date and Year-to-Date losses increased to -1.2 per cent and -7.0 per cent, respectively.
Also, the market capitalisation shed N119 billion or 0.91 per cent to close at N13.017 trillion against N13.136 trillion posted on Thursday.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; MTN Nigeria Communications (MTNN), BUA Cement, Zenith Bank, Ecobank Transnational Incorporated and Guaranty Trust Bank.
Analysts at United Capital Plc said: “Looking ahead, we expect the market to remain volatile, as investors lock funds in cheap and fundamentally sound stocks, while taking profit on some stocks that gained last week.”
Consequently, market breadth closed negative with 16 stocks compared with 25 decliners.
Prestige Assurance led the losers’ chart in percentage terms, dropping by 10 per cent, to close at 63k, per share.
Neimeth International Pharmaceuticals followed with 9.73 per cent to close at N2.32, while AIICO Insurance shed 9.32 per cent to close at N1.07, per share.
ETI dropped 7.34 per cent to close at N5.05, while UACN Property Development dipped 6.73 per cent to close at 97k, per share.
Conversely, Fidson Healthcare and Red Star Express led the gainers’ chart in percentage terms, appreciating by 10 per cent each to close at N3.30 and N3.63 per share, respectively.
Cornerstone Insurance followed with a gain 9.80 per cent to close at 56k, per share.
Honeywell Flour Mills rose by 9.78 per cent to close at N1.01, while Unity Bank appreciated by 8.77 per cent to close at 62k, per share.
In the same vein, the total volume traded declined by 29.51 per cent with an exchange of 237.65 million shares, worth N1.61 billion, and traded in 4,808 deals.
This was in contrast with a total of 337.13 million shares valued at N3.41 billion achieved in 3,880 deals on Thursday.
Transactions in the shares of FBN Holdings topped the activity chart with 24.35 million shares worth N128.76 million.
Zenith Bank followed with 24.14 million shares valued at N392.36 million, while FCMB Group accounted for 19.47 million shares valued at N33.48 million.
Caverton Offshore traded 17.37 million shares worth N39.02 million, while United Bank for Africa transacted 14.64 million shares valued at N95.74 million.
NIMASA tasked on discrimination against Nigerian seafarers’ certificate
A Marine Engineer, Daniel Ikueyemi, on Saturday urged the Nigerian Maritime Administration and Safety Agency (NIMASA) to address the issue of discrimination against the Nigerian Seafarers’ Certificate of Competence (COC).
He made the appeal on an Instagram live programme organised by Mrs Ezinne Azunnah of the MaritimeTvNews, entitled, ”Seafarers’ Certificate of Competence: Quality and Opportunities”.
The Certificate of Competency (COC) is a form of licence every mariner is granted to work on ships.
The certificate ensures that the concerned person has the sufficient knowledge and skills to sail on ocean-going vessels.
According to him, our COC is not strong enough and the issue of discrimination of the COC is a common thing for us.
He added that to ensure that the discrimination stopped, there was the need for NIMASA as the regulator to strengthen the security of the COC to standardise it and prevent it from being forged.
“Other ways to tackle the issue is to have a Memorandum of Understanding (MoU) with some African countries to ensure seafarers utilise their COC.
“There is a notion that 60 per cent of what is taught does not correlate.
“There is need to check this notion and also look into the curriculum that are being used in the country’s maritime academies,’’ he said.
Ikueyemi also pointed out that the feedback mechanism that existed did not capture seafarers’ experience at sea.
He urged NIMASA to have a plan from point of training to point at which seafarers were employed so that their trade would be harnessed.
Also Capt. Ola Alufa, a Marine Captain and Consultant said that the restriction of the country’s COC had not given seafarers the opportunity to be utilised globally.
According to him, Nigerian seafarers are faced with limitations as regards categorisation and that should be expunged.
Alufa suggested that Nigerian seafarers should be well-employed everywhere and be able to work in vessels.
“The limitation is the categorisation. We do not have trading vessels and we need them now.
“NIMASA has tried as regards the curriculum, experience and examination which is very tough. It is of international standard, we need to encourage our own certificate,” he said
He recommended that the Ministry of Transportation must work hand in hand with NIMASA to write to the International Maritime Organisation (IMO) to expunge the clause affecting seafarers.
“A lot of seafarers have not yet gone on board a ship before. They just got the certificate from schools but there is no opportunity and this still bounces back to government on the need for training vessels.
“The vessels will give seafarers the experience and certificate to be recognised worldwide,” he said. (NAN)
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