Dangote Cement ramps- up production at Okpella plant

AFRICA’S biggest cement manufacturer, Dangote Cement Plc, has ramped up production at its newest plant in Okpella, an industrial community in Edo State, even as its earnings per share rose by 16.8 per cent to N6.18 in the first quarter ( Q1).

The Okpella plant is part of the company’s efforts to increase supply in Nigeria as well as ensure timely supply of products to customers in the Southsouth and Southeast regions.

Analysis of the cement giant’s three months results indicated that Dangote Cement sold a total volume of 7.2 metric tonnes ( MTS) of cement across the group with Nigerian operations accounting for 4.8Mts while the rest of Africa did the balance of 2.4MTS.

Chief Executive Officer, Dangote Cement, Michel Puchercos, said that the company started the first quarter on a positive note despite the new uncertainties brought by a volatile global environment.

He said increases were recorded in revenue and profitability that drove strong cash generation across the Group.

Profit after tax ( PAT) rose to 105.9 billion, up 18 per cent, compared to last year, while the Group’s earnings before interest, taxes, depreciation, and amortization ( EBITDA) rose to 211 billion, by 18.6 per cent with an EBITDA margin of 51.1 per cent.

“On the operational side, we are ramping up production at our Okpella plant and are progressing well to deploy grinding plants in Ghana and Cote d’ivoire. Demand remained strong across all markets and we remain confident that Dangote Cement is positioned to meet customers’ expectations despite these temporary challenges.

“Continuing our efforts to deliver shareholder value, Dangote Cement completed the second tranche of its buyback programme. Following the completion of both tranches, Dangote Cement has now bought back 0.98 per cent of its shares outstanding. This share buy- back programme reflects the company’s commitment to finding opportunities beyond dividends to return cash to shareholders,” Puchercos said

He continued: “The volatile international context is strengthening our efforts to ramp up the usage of alternative fuels and execution of our export- to- import strategy. Reducing our dependence on imported inputs and making our markets self- sufficient has never been more relevant from a regional perspective.

“Our continuous focus on efficiency, meeting strong market demand and maintaining our cost leadership drives our ability to consistently deliver superior profitability and value to all shareholders.”