Dangote Cement Plc, one of the major Cement manufacturers listed on the Nigerian Exchange (NGX), recorded a gain of about N332 billion on Wednesday, November 3rd, 2022. This helped to push the NGX All Share index to close on a positive note.
Market watchers believe investors are showing positive sentiment on the stock following news that the company increased its sales volume in nine months.
Checks by Nairametrics showed that the cement stock grew by 8.84% to close at N240 per share from N220.50 the previous day.
Dangote’s share price and market cap: Further checks showed that Dangote Cement closed Wednesday’s trading session at N240.00 per share and N4.089 trillion in market capitalization. This was against N220.50 per share and N3.757 trillion worth of market capitalization the previous day. Hence, the stock gained N332 billion or 8.84%.
The company’s latest earnings report: Dangote Cement on Sunday said it grew its overall volume of cement sales by 6.2% to 20.8metric tons amid growing inflation and a volatile global environment in the first nine months of 2022.
The company explained in its financial report that it embraced alternative fuel to cut costs.
It said it also commissioned its power plant at Okpella and was progressing well to deploy grinding plants in Ghana and Cote d’Ivoire. This would help to increase the supply of cement across its operational base, the company said in the statement.
The Chief Executive Officer, of Dangote Cement, Michel Puchercos, while presenting the third quarter results to the Nigerian Stock Exchange, said:
“To mitigate the impact of the significant increase in energy and AGO costs, we are strengthening our efforts to ramp up the usage of alternative fuels.
“So far this year, we have co-processed 101,553 tonnes of waste representing a 77% increase over 9M 2021. We are on track to commission our alternative fuel feed system at Obajana lines I and V, and Ibese line II in November. In addition, we are ramping up our investment in compressed natural gas, to reduce our AGO usage.
“Consequently, he explained that the company recorded an increase in revenue of N1,177.3bn, up 15.2% compared to last year, and Group EBITDA of N515.9bn, up 0.2% with an EBITDA margin of 43.8%.”
He recalled that Dangote Cement is Africa’s leading cement producer with nearly 51.6Mta capacity across Africa. A fully integrated quarry-to-customer producer, it has a production capacity of 35.25Mta in its home market, Nigeria.
The statement described the Obajana plant in Kogi State, Nigeria, as the largest in Africa with 16.25Mta of capacity across five lines while the Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta.