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Dangote Cement pledges higher returns, value to shareholders, stakeholders

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Chairman of Dangote Cement Plc, Aliko Dangote has guaranteed shareholders and other stakeholders of the company’s management’s resolve to keep the company profitable by leveraging on strategic innovations for the continuous growth of their investments.

Speaking at the 14th Annual General Meeting (AGM), of the company in Lagos, Dangote said the prospects for the cement company remain bright as the management will continue to innovate on quality products delivery to millions of its customers across Africa while touching the lives of its host communities.

He stated: “We will continue to make sure that we keep our shareholders happy, not only the shareholders but all our other stakeholders… Our strategy remains steadfast, focused on organic growth in Nigeria and Pan-Africa while ensuring that Africa’s regional integration becomes a reality. We will continue to contribute to improving regional trade within Africa by building plants across West and Central Africa, guided by our vision of making the region cement and clinker self-sufficient. In addition, we aim to deliver higher returns and value to our shareholders.”

The Chairman pointed out that despite the challenging macroeconomic environment in 2022, the company still made great strides, performed admirably, and remains Africa’s largest and leading cement producer.

Dangote explained that in the face of the unexpected challenges in 2022, the company implemented robust cost reduction strategies to manage the inflationary environment, and thus enhanced its competitiveness while maintaining high levels of product quality and customer service delivery.

According to him: “In addition, we achieved giant strides in transitioning to cleaner energy, with our cost containment initiative propelling the use of Alternative Fuel (AF) to replace more expensive fossil fuels, such as coal and gas. We also increased the use of Compressed Natural Gas (CNG) for our trucks due to the rising diesel cost environment.

These efforts have helped us reduce our cost base and enhanced our flexibility, enabling the Company to respond more effectively to changes in the market. As a result, we recorded revenue and EBITDA growth of 17.0 per cent and 3.5 per cent from the prior year respectively, albeit under unprecedented inflationary pressure. We also achieved a profit after tax of ₦382.3 billion, up 4.9 per cent compared to 2021.”

Analysing the 2022 year-end result, Dangote explained that the company achieved its highest revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) in history at ₦1,618.3 billion and ₦708.2 billion, respectively. The exceptional EBITDA, according to him, was supported by its numerous cost containment measures, substituting higher-cost fuel for cheaper alternative fuel products.

The Company Chairman explained that: “Over the last twelve years, volumes have grown by a double-digit compound annual growth rate of 11.2 per cent. Similarly, EBITDA has grown at a compound annual growth rate of 16.3 per cent, over the same period, implying a five-fold increase and revealing a true growth story.

“Accordingly, we closed the year with a profit after tax of ₦382.3 billion and an Earning per Share (EPS) of ₦22.27. Despite these accomplishments, we are not resting on our laurels. We recognise that the business environment remains volatile, so we will continue to evolve with the changing times while embracing technological advancement,” he added.

Speaking on the Company’s Annual Reports, Mrs. Bisi Bakare, Chairman of the Pragmatic Shareholders Association, commended the management of Dangote Cement for its doggedness during the year under review for still being able to exceed the shareholders’ expectation in view of the inclement economic weather under which companies operated in the country.

She explained that the shareholders were happy for the returns, pointing out that it only means that the company was living up to its billing as the largest in Sub-Saharan Africa, adding that if not for the resilience of the management, the company would not be able to post such an impressive performance in 2022.

Mrs. Bakare alluded to the successful listing of the N300 billion series bond by the Company, saying the company succeeded largely due to the confidence reposed in the company and its management by the investing public. “It is not all companies that could record such a feat given the huge amount involved and the biting economic situation”, she stated.

 

 

 

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Speak now! Catholic priests want Kaduna gov’s reaction to El-Rufai’s Islamisation comments

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Uba Sani, must either officially distance himself or affirm the declaration of his predecessor Nasir El-Rufai that Muslim-Muslim executive branch leadership, have come to stay or stand up to denounce it immediately.

These were the demands from Catholic priests in parts of the North, who as they expressed disgust at the statement, which showed the former governor captured in a video, which went viral last week, practically celebrating the continuation of an arrangement, which he first introduced in 2019, and which has now been sustained with the new governor having a Muslim deputy.

Clerics from Kaduna, Kafanchan and Zaria chapters of the Nigerian Catholic Diocesan Priests Association (NCDPA), in a public letter to Sani, urged him to declare his position on what they described as political supremacism in Kaduna state and Nigeria, as part of their reactions to the video, which has raised a lot of dust.

El-Rufai, who in his speech to Muslim clerics in the state, had recounted how after instituting an all-Muslim executive in the state himself and made it permanent in the state, the arrangement was pushed through at the national level with the election of Bola Ahmed Tinubu and Kashim Shettima, as President and Vice President, respectively on the platform of the All Progressives Congress (APC).

Informing that while Nigerians were actually believed that religion was not the issue in pushing through with the ticket, when it was in fact the case, the former Governor, who spoke in Hausa, declared that the arrangement had come to stay and would last for the next 20 years at the initial stage after Tinubu, adding that the Christian Association of Nigeria (CAN), had been defeated by the outcome.

But an apparently thoroughly upset Catholic priests, in an open letter on Thursday, said: “Having soberly considered the contents and implications of such communication by a former state governor who is known to be your close ally, we feel compelled to write you, to know where you stand with regard to the commotions Mallam El-Rufai intends to propagate and perpetuate in our state,” the letter reads.

“We write you today because we are responsible stakeholders in the affairs of our beloved state with our own congregations and followers. Mr governor, we do not intend to conclude that you are in agreement with all the content of the former governor’s utterances, as you have given no explicit reason to suggest so (yet), even though you were present at the occasion! We therefore earnestly expect your direct official reaction to the utterances of your predecessor in office.”

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Buhari spent more than $19billion on revamping four refineries without result – Nasarawa gov

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Barely two weeks after his exit, the records of former President Muhammadu Buhari, have come to to the fore with one of them indicating a damning verdict, as he was said to have sunk a whopping $19billion in trying to rehabilitate the nation’s four refineries, without anything to show for it.

Abdullahi Sule, Governor of Nassarawa State, who used the former President abysmal failure to make a case for supporting the removal on petroleum products, compared the huge wastage to the amount Dangote refinery, cost to give Nigeria a facility with the single chain production in the world.

None of Nigeria’s four refineries, located in Kaduna, Port Harcourt, and Warri is currently operational despite the huge amount sunk to resuscitate them, most of the funds borrowed from foreign lending agencies, the latest being the securing of $1.5million loan for that of Port Harcourt.

Bemoaning the situation, the governor, said: “Look at how much the President Buhari administration spent on fixing the refineries. In the eight years, he spent more money than the $19 billion that Dangote spent in building a refinery. That is one and a half times the size of our three refineries combined.”

A guest on Sunrise Daily, a breakfast programm of Channels Television on Thursday, Sule, pinned the payments of subsidy on Nigeria’s non-functional refineries, adding: “From the government side, I think we didn’t do a good job. When the (former) President (Buhari) came in in 2015, prices of crude oil dropped by less than 30 dollars. At that time, there was zero subsidy.

“Our three refineries in Nigeria today have a total of 450,000 barrels per day, Dangote is 650,000. He spent $19 billion on building it. We spent, not building a new one, but in maintaining these refineries; more than $19 billion in eight years, yet they have not been maintained.”

The Dangote Refinery, Africa’s biggest oil refinery, which took off in 2017, drew Nigerians and global personalities in different fields of life, including four African Presidents at its commissioning on May 22, 2023 by Buhari.

Sule, who also lamented the complexity of maintaining the refineries due to their diverse components, added: “The refinery is actually a component for water, crude, and diesel, about five or six different components that constitute a refinery. The moment the government says we are going to spend $2 billion this year on the refinery. The $2 billion is spent and as far as the President is concerned, they have given $2 billion.

“Now when it goes to the three refineries that we have in Port Harcourt, Warri, and Kaduna. Then they say, you now take $700 million, you now take $800 million – by the time they take that, it goes to fix maybe only one component out of the four components that are all bad. The ideal resolve would have been to allocate the major funds to one of the refining states to fix it totally before allocating the remainder to the other states.

“So, zero work is done. These are the true realities of what is happening, and that is why none of the refineries is working. These are truly the problem, we have not really managed this thing well.”

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Japan goes tough on asylum seekers, enacts new law to check abuse

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Despite desperate attempts to block it, including a ruckus, which broke out in parliament Japan went ahead on Friday to enact an immigration law that would see the government deporting failed asylum seekers, even with members of civil society, joining in the pushback.

The law gives refugees only three chances to try after which they would face deportation, unlike before when applicants could stay in Japan during the decision process, regardless of the number of attempts they made to secure refugee status, reports, say.

The revised law will “protect those who must be protected while strictly dealing with people who have violated rules. There are many people who misuse the application system to avoid deportation,” Justice Minister Ken Saito, was quoted as saying, adding that this had persisted even when such people were not fleeing danger or persecution.

Last year, Japan accepted just 202 refugees out of some 12,500 applicants, and separately allowed 1,760 people to remain in the country due to “humanitarian considerations,” including more than 2,400 evacuees from Ukraine under a different framework.

Activists staged rallies against the revised law, but a protest from the opposition bloc in parliament was voted down by the ruling coalition, which holds a commanding majority.

“It is intolerable to deport people, even if they have criminal records, to countries that may violate their human rights” and where “their life and freedom would be in danger”, the Tokyo Bar Association said this week.

The ruling Liberal Democratic Party says the revisions will bring better access to medical care and accommodation options for people whose asylum applications are pending.

Japan’s immigration detention conditions have been under scrutiny since the 2021 death of Wishma Sandamali, a 33-year-old Sri Lankan woman.

Sandamali was not an asylum seeker but had been held for overstaying her visa after seeking police protection, reportedly to escape an abusive relationship.

Her family are seeking compensation of more than $1 million from the government over her death.

Sandamali reportedly complained repeatedly of stomach pain and other symptoms, and campaigners allege she received inadequate medical care.

Controversy and political pressure over the incident led ruling lawmakers to drop a push to enact similar legal changes to immigration rules two years ago.

Shoichi Ibusuki, a lawyer for Sandamali’s family, told AFP on Thursday that the revised bill was “equivalent to having a button to execute those who seek refuge by deporting them”.

“Japan’s refugee recognition system is not working,” he said, with officials turning down applications quickly, sometimes without face-to-face interviews.

Amnesty International also said in March that Japan should scrap the proposed revision to immigration laws, calling the country’s detention policies “harsh” and “repressive.”

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