Dangote Cement to Raise Additional N50 Billion to Boost Operations
Dangote Cement Plc (DCP) has announced the issuance of N50 billion Series 3 and 4 under its N150 billion CP programme announced in June 2017. The leading cement manufacturing had announced the CP programme, saying it would be either as a standalone transaction or by a way of programme to be executed in tranches, series or proportions.
The company opted for series and had already raised N50 billion through Series 1 and 2. The company in a notification to Nigerian Stock Exchange (NSE) yesterday, said it would issue the N50 billion Series 3 and 4.
The Managing Director of DCP, Mr. Joseph Makoju had said:“The CP that will be issued under the programme will be deployed towards capital expenditure, working capital and general corporate purpose.”
Market operators had said capital injection would further boost the performance of the company. Shareholders of DCP had at the last annual general meeting commended the board and management of the company for its improved profit and dividend payment performance for the 2017 financial year.
The company recorded a profit after tax of N204.2 billion in 2017, up by 43 per cent from N142.9 billion in 2016. Based on that improved bottom-line, the board recommended a dividend of N178.9 billion, which translated to N10.50 per share, up from N8.70 the previous year.
The shareholders of the company at the 7th annual general meeting (AGM) expressed excitement at the dividend, saying DCP had continued to create value for them, urging the board and management to maintain that impressive performance.
Chairman of DCP, Alhaji Aliko Dangote said the board believed that the recommended dividend was at an appropriate level and was consistent with the company’s aim of delivering superior returns to shareholders, while at the same time balancing the company’s need to invest in growth.
According to him, as a company, DCP was accorded international credit ratings that were actually higher on a standalone basis than the sovereign country of Nigeria.
“This recognition should assure you, our shareholders, that our long-term view and prudent management are serving us well at a time when others in our industry are facing difficulties that challenge their independence and only serve to erode shareholder value,” he said.
Makoju said he was pleased with the way the company adapted to marketing efforts to the challenges in the Nigerian economy in 2017.
Looking ahead, Makoju said the company would return to volume growth, particularly in Nigeria as the economy recovers and the higher oil price brings more cash into the country.
“We will continue to focus on improving sales and logistic so we are well prepared for when the market picks up, which we are confident it will in 2018 as infrastructure investment begins to accelerate,” Makoju said.