Chairman of Dangote Cement Plc, Aliko Dangote, announced at the company’s 15th Annual General Meeting in Lagos that they are finalizing plans to convert thousands of their delivery trucks to run on Compressed Natural Gas.
This initiative aligns with the Federal Government’s push towards adopting alternative fuels for official vehicles, aiming to reduce reliance on fossil fuels.
Dangote emphasized that this move would not only contribute to Nigeria’s energy independence but also help build a more secure energy future for the nation.
“We are now going to start using CNG vehicles, especially with the new policy of the Federal Government, launched by the Renewed Hope Agenda by His Excellency, President Bola Tinubu. By the end of next year, all our trucks that are operating in the company will be running on CNG, and that is a whole lot of money that we are going to invest. But we are equal to the task, and we will continue to push and make sure that we continue to make our shareholders happy,” Dangote said.
At the 15th Annual General Meeting of Dangote Cement Plc, Dangote announced a significant 50% increase in dividend payout to shareholders. The dividend will rise from N20.00 per share in the 2022 financial year to N30.00 for the last financial year of 2023.
He highlighted the company’s ongoing efforts to boost production, including the construction of a new plant with a capacity of 6 million metric tons per annum at Itori, in Ewekoro Local Government Area of Ogun State.
Despite challenges at the Apapa Port in Lagos, he assured shareholders that the plant’s construction would be completed on schedule.
Dangote expressed satisfaction with Dangote Cement’s impressive performance, noting a double-digit revenue growth of N2,208.1 billion.
The Group’s Earnings before Interest, Taxes, Depreciation, and Amortization also reached a record high of ₦886.1 billion, marking a 25.1% increase.
Dangote assured shareholders of even better performance in the coming year, fulfilling the promise of enhanced Return on Investments to shareholders and stakeholders.
He noted, “This outstanding EBITDA performance was underpinned by our robust cost control measures and our diverse pan-Africa operations. The latter acted as a cushion, providing resilience to country-specific risks, while the former enhanced our overall profitability. Our pan-Africa operations now contribute 41.2per cent to the Group’s overall volumes.
“We made significant strides in our expansion initiatives, with the successful launch of operations at our 0.45Mta grinding plant in Ghana, increasing our total installed capacity to 52.0Mta. Furthermore, our 1.5Mta grinding plant in Côte d’Ivoire is making substantial progress and is nearing completion. Lastly, we have commenced construction on our 6Mta Itori plant in Ogun State, a crucial step in supporting our ambitious export goals.”
In 2023, Dangote Cement demonstrated significant improvement across all performance indicators. The company’s group revenue surged by 36.4% to ₦2,208.1 billion, while Profit after Tax (PAT) increased by 19.2% to ₦455.6 billion. Earnings per share also rose by 18.8% to ₦26.47. Dangote Cement expanded its market presence across the continent, with pan-Africa volumes increasing by 12.7% to 11.3 million metric tons.
The Group Managing Director of Dangote Cement Plc, Arvind Pathak, attributed the company’s success in 2023 to its effective diversification strategy, which proved resilient in the face of challenging macroeconomic conditions.
“Our diverse operations acted as a cushion, providing resilience to country-specific risks. Pan-African volumes were up 12.7 per cent and now account for 41.2 per cent of Group volume. Consequently, pan-African revenue increased by a record 123.2 per cent to ₦925.9 billion, while EBITDA surged by over four-fold to ₦263.7 billion,” he said.
Pathak mentioned that in light of the increased inflation, the company responded by implementing innovative strategies to boost revenues, control costs, and safeguard margins.
These strategies included optimizing fuel mix and accelerating the adoption of alternative fuels, such as Compressed Natural Gas (CNG), to replace more costly fossil fuels in their cement trucks.
“We implemented new and innovative business strategies that helped to drive up revenues, contain costs, and protect margins. These initiatives included fuel mix optimisation, propelling the use of alternative fuels to replace more expensive fossil fuels. We also began the phased transition from diesel power trucks to full Compressed Natural Gas (CNG) trucks,” he said.
Shareholders praised Dangote Cement’s board and management for their impressive performance in 2023, leading to a 50% increase in dividend payout to N30 per share despite the challenging economic environment.
Mrs. Bisi Bakare from the Pragmatic Shareholders Association commended the management for the substantial dividend, contrasting it with other companies experiencing losses.She expressed optimism for even higher dividends in 2024.
President of AARNS, Dr Farouk Umar, also applauded Dangote Cement’s management for their profitability amidst economic challenges, praising Dangote for his patriotism and efforts to reduce petroleum product prices through the Dangote Refinery.
