Home Business & Economy Dangote Cement terminals to generate $700m Forex

Dangote Cement terminals to generate $700m Forex

Dangote Cement terminals to generate $700m Forex

Ugo Amadi

Dangote Cement Plc is to generate $700million forex from the cement terminals being constructed in Lagos State and Onne, Rivers State.

Speaking at the 10th annual general meeting in Lagos, chairman of the company, Aliko Dangote, explained that the terminals, which were delayed by equipment suppliers, would be ready before the end of 2019.

Mr Dangote said the terminals would rake in about $700 million in foreign exchange through cement exportation to sub-Saharan Africa.

He said the company would be opening export facilities within the terminals to export clinker and cement to its existing facilities both in Cameroun and other African countries.

“Later in 2019, we will open export facilities in Lagos and Port Harcourt that will enable us export clinker initially to our grinding facility in Cameroun and then to new grinding plans we are building in West Africa.

“Not only will these generate useful foreign currency for Dangote Cement to support other expansion projects outside of Nigeria, they will also help to increase the output of our Nigerian plants,” Mr Dangote said.

He said the company would be exporting cements through the terminals to Ghana, Cameroun, Sierra Leone and Congo, among others.

Mr Dangote said the terminals would make Nigeria the biggest exporter of cement in sub-Saharan Africa.

According to him, the company’s capacity will increase on the completion of the terminals.

Mr Dangote said the project would help to improve job creation and increase prosperity of the country.

On the dividend, he said the dividend payment represented 52.4 per cent increase over the N10.50 per share paid in 2017.

Specifically, the company declared a total dividend of N272.6 billion, which translated to N16 per ordinary 50k share which was approved by shareholders at the meeting.

The dividend was higher by 52.4 per cent against total dividend of N178.9 billion or N10.50 per share paid by the company for 2017 financial year.

Earlier, the Founder of Independent Shareholders Association of Nigeria, Sunny Nwosu, lauded the company for impressive dividend declared in 2018.

Mr Nwosu said the company, made of quality board members, had good corporate governance record in all its operational areas, even outside the shores of Nigeria.

The Chairman of Association for Advancement of Rights of Nigerian Shareholders, Farouk Umar, commended the company for the impressive report in 2018 in spite of the economic situation.

Mr Umar said the shareholders were happy with the N16 dividend declared in 2018, adding that the trend should be sustained in future.

Another shareholder, Nona Awoh, urged the company to strengthen its capacity utilisation to increase its market share.

Mr Awoh advised that the company must map out new strategies to reduce its unclaimed dividend stock

The company, during the financial year ended December 31, 2018, reported total revenue of ₦901.2 billion against the ₦805.5 billion achieved in in 2017, an increase of 11.9 per cent.

Profit before tax stood at ₦300.8 billion, an increase of a 3.9 per cent over the ₦289.59 billion recorded in 2017.Profit for the year stood at N390.33 billion from the N204.25 billion achieved in 2017.

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