Dipo Olowookere
By Dipo Olowookere
One of the leading cement makers in Africa, Dangote Cement Plc, has resumed clinker exports to neighbouring nations on the continent.
Over three months ago, the company said it suspended the export of clinker as the rising demand for cement in Nigeria was pushing the price and it needed to ramp up production to stabilise the situation.
“We took the strategic decision to pause our clinker exports to ensure we meet the rapid volume growth in the Nigerian domestic market.
“We are improving the output of our existing and new assets and aim to recommence clinker exports in the second quarter,” the GMD/Chief Executive Officer of Dangote Cement, Mr Michel Puchercos, had said.
A few days ago, the cement maker released its half-year results and Mr Puchercos confirmed that in the second quarter of this year, the exportation of the commodity was restarted, with two shipments, one each from Apapa and Onne terminals.
“We recommenced clinker exports in the second quarter after taking the strategic decision to pause our clinker exports. This was to ensure we met the historic volume growth in the Nigerian domestic market since mid-2020,” the company’s chief said in a statement made available to Business Post.
In the first six months of 2021, Dangote Cement grew sales volumes to 15.3Mt, with its local market accounting for 9.87 Mt and pan-African markets contributing 5.5Mt.
This increase was attributed to rising activities in the housing infrastructure and commercial construction and it boosted the post-tax profit to N191.6 billion
For Mr Puchercos, “Our performance reflects the strong demand across the group, with increases in revenue and profitability, compared to the same period last year.
“This strong intrinsic performance is magnified by the lower Q2 2020 results because of COVID-19. The growth trend continues, and we are focused on meeting the strong market demand across all our countries of operation.”
He further said, “We are improving the output of our existing and new assets and I am happy to announce that our 3 Mt Okpella Plant, Edo State, is on track to come on stream in the next quarter.”
Mr Puchercos also stated that the company’s alternative fuel project which focuses on leveraging waste management solutions, reducing CO2 emissions and sourcing material locally was at an advanced stage while procurement and installation of the necessary equipment across all plants was ongoing.
On the steps taken to protect the stakeholders, he said, “We also continue to maintain a strong focus on health and safety measures in all our engagements with stakeholders.
“We have learned a lot over the past year on how to mitigate risks associated with COVID-19. We remain committed to protecting our team members and communities by being fully compliant with local laws and regulations.”
On sound governance, he disclosed that, “We are leading the way with our commitment to sustainability and best practices. We are driven by the goal of achieving the highest level of governance and building a sustainable brand for all stakeholders. Transparency and consistency are at the core of every part of our business culture.”
Dangote Cement became the first Nigerian listed company to report its financial results using XBRL format with the IFRS taxonomy.
Adopting the XBRL reporting format will strongly benefit Dangote Cement’s existing and potential investors. It represents another step in continuing efforts to modernize and enhance the transparency of, and access to, companies’ disclosures.
Dangote Cement Plc is Sub-Saharan Africa’s largest cement producer with an installed capacity of 45.6Mta capacity across 10 African countries and operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales, and distribution of cement.
It has a production capacity of 32.3Mta in its home market, Nigeria. It has three cement plants in Nigeria, the Obajana plant in Kogi state, with 16.3Mta of capacity across four lines; the Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta and Gboko plant in Benue state has 4Mta.
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.
In addition, Dangote Cement has operations in 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).
Dangote Cement has a long-term credit rating of AAA(NG+) by GCR and Aa2.ng by Moody’s due to its market-leading position, significant operational scale and strong financial profile evidenced by the company’s robust operating and net profit margins relative to regional and global peers, adequate working capital, satisfactory cash flow and low leverage.
Dangote Cement is a subsidiary of Dangote Industries Limited, a diversified and fully integrated conglomerate as well as a leading brand across Africa in businesses such as cement, sugar, salt, pasta, beverages, and real estate, with new multi-billion-dollar projects underway in the oil and gas, petrochemical, fertilizer and agricultural sectors.
