Dangote Cement Plc will shift to coal as a stable energy source, increase the group’s production capacities with the opening of new cement plants and enhance its domestic and international supply as part of a multi-prong approach to improve its performance in the period ahead.
At the presentation of the underlying facts on the operations of the cement group yesterday at the Nigerian Stock Exchange (NSE), chief executive officer, Dangote Cement Plc, Onne Van der Weijde, outlined the strategic initiatives being taken to improve the profitability of the cement group.
He spoke against the background of the half-year results of the group for the period ended June 30, 2016. Key extracts of the group results showed that turnover rose to N292.19 billion in first half 2016 as against N242.22 billion recorded in comparable period of 2015. Profit before tax however dropped to N124.89 billion in first half 2016 as against N128.73 billion recorded in comparable period of 2015. After taxes, net profit declined from N121.81 billion to N103.42 billion.
Van der Weijde said the cement group would start 100 per cent coal production in September 2016 in an attempt to overcome the shortage of gas supply and reduce the challenge of foreign exchange (forex).
According to him, the company had decided three years ago to diversify and de-risk fuel supplies by opting for coal mills as energy sources, with the coal mills now ready for operation by end of September 2016.
He said switching to coal would improve margins compared with Low Pour Fuel Oil, improve fuel security, eliminate shutdown as 100 per cent coal use will be possible across all lines and reduce forex need for imported fuel.
He added that the some of the company’s plant in Obajana in Kogi State and Ibese in Ogun State have already started using locally purchased coal blended with imported coal to assure optimal quality for their operations.
“We will begin mining our own coal at Ankpa in Kogi State in fourth quarter,” Van der Weijde said.
He noted that klin fuel is the major cost of cement production, pointing out that the group margins are affected by the inefficiencies in the fuel mix.
He assured that in the second half, the group expects strong volume growth with Ghana likely to import more cement from Nigeria while simultaneously focusing on protection of margins in Nigeria with more coal facilities in Nigeria coming on stream and increased exports to ECOWAS countries.
He said the groups’ Congo plant is set for operation in October 2016 while the Sierra Leone plant is expected to ready by October 2016.
Chief executive officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema commended Dangote Cement as a dominant player in the industrial goods sector, noting that the cement group has continued to solidify itself as an innovative brand in this sector. – The Nation.
DANGOTE FACTORY WISH TO INFORM THE GENERAL PUBLIC
OF NIGERIA SALES OF CEMENT AT A PROMOTIONAL FACTORY
PRICE OF #1,000 BAGS OF RICE #5,000 PER BAG GRONDNUT
OIL 30LITRE #3,200, BAG OF FLOWER #4,000, BAG OF SALT #
9,50, BAG OF SUGAR #4,000, AND LOTS MORE CONTACT. THE
SALES MANAGER ON 08153863900 OR 08106008278 WE DELIVER TO ANY PART
OF THE COUNTRY UPON THE CUSTOMER(S) ORDER,AND
DELIVERED TO YOUR DOOR STEP *PRODUCT: dangote CEMENT
(50KG) *ORIGIN: dangote pLC. *PRICE PER BAG:# 100 NAIRA
ONLY. *TRAILER LOAD QTY:HALF OR FULL TRAILER.
*DURATION OF DELIVERY AFTER ORDER:2DAYS.
*TRANSPORTATION COST: DEPENDS ON STANCE/ YOUR.
STATE. NOW TO PLACE YOUR ORDER. ALSO YOU CAN
REGISTER AS AN INDIVIDUAL OR CORPORATE BODY. NOTE: we
deliver our goods to every state. Customers may reside in
stocks, sites or construction company. Also workers are needed
eg driver and lot more……….thanks for you patronage.