Banking & Finance Economy

Dangote Cement to earn $700m forex from terminals

Written by Maritime First

…As IFC, AMC set to sell 14.1% stake in Ecobank Transnational***

The Dangote Cement Plc on Monday said its cement terminals undergoing  construction in Lagos State and Onne in Rivers terminals, would annually rake in about $700 million in foreign exchange through cement exportation to sub-Saharan African countries when concluded.

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Alhaji Aliko Dangote, the company’s Chairman, who noted that the constructions were delayed by equipment suppliers, highlighted this while addressing shareholders at the 10th Annual General Meeting (AGM) of the company in Lagos.

He said that 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, ” Dangote said

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

Dangote said  that 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.

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

On the dividend, he said that 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 againat total dividend of N178.9 billion or N10.50 per share paid by the company for 2017 financial year.

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

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

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

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

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

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

The company, during the the financial year ended Dec. 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.

In another development, the International Finance Corporation (IFC) and its Asset Management Company have reached advanced discussions to sell equity holding in Ecobank Transnational Incorporated (ETI).

The company said that IFC and the Asset Management Company (AMC) had entered into a share purchase agreement with Dutch investment firm, Arise BV for the sale of their circa 14.1 per cent stake in ETI.

The ETI Lome-based parent company of the Ecobank Group, announced a material information relating to its ownership structure in a statement to the Nigerian Stock Exchange.

According  to the statement, completion of the transaction is expected in the coming months, subject to due diligence, internal and regulatory approvals.

It said that IFC and ETI had worked together since 1993 to broaden access to finance, enhance trade liquidity and strengthen Ecobank.

“Since 2009, IFC and the funds managed by the IFC Asset Management Company, through their investments, have been supporting Ecobank’s growth strategy across Africa in building a pre-eminent banking franchise,” it said.

Arise BV is a leading equity investor in financial institutions in Sub-Saharan Africa, with a combined asset value in excess of 700 million dollars.

Its mandate is to capitalise and stimulate growth across all financial services sub-sectors  within sub-Saharan Africa.

 

 

 

 

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Maritime First