In one trading day, Dangote Cement makes N332 billion
On November 3, 2022, Dangote Cement Plc, one of the main cement producers listed on the NigerianExchange (NGX), reported a gain of around N332 billion. The NGX All Share index was able to close on a positive note thanks to this.
Following the announcement that the company boosted its sales volume in the previous nine months, market observers feel that investors are displaying a positive mood toward the stock.
According to Nairametrics' checks, the cement stock increased from N220.50 the day before to N240 at the closing, an increase of 8.84%.
Share price and market value of Dangote Further investigation revealed that Dangote Cement ended trading on Wednesday with a market value of N4.089 trillion and a share price of N240.00. The market capitalisation the day before was N3.757 trillion, or N220.50 per share. The stock increased by N332 billion or 8.84% as a result.
According to Dangote Cement's most recent earnings report, in the first nine months of 2022, cement sales increased overall by 6.2% to 20.8 metric tons despite rising inflation and an uncertain global economy.
In its financial report, the company stated that it adopted alternative fuel to reduce costs.
It said that it had also opened its power plant in Okpella and was making good progress toward opening grinding facilities in Ghana and Cote d'Ivoire. According to the company's statement, this would contribute to a greater supply of cement throughout its operational base.
While presenting the third quarter results to the Nigerian Stock Exchange, Dangote Cement's Chief Executive Officer, Michel Puchercos, said:
We are stepping up our efforts to increase the use of alternative fuels in order to lessen the effects of the sharp rise in energy and AGO expenses.
We have co-processed 101,553 tonnes of garbage so far this year, which is a 77% increase over 9M 2021. We plan to start operating the alternate fuel feed system at the Obajana lines I, V, and II in November. In order to decrease our reliance on AGO, we are also increasing our investment in compressed natural gas.
He went on to say that as a result, the company saw an increase in sales of N1,177.3 billion, up 15.2% from previous year, and Group EBITDA of N515.9 billion, up 0.2%, with an EBITDA margin of 43.8%.
He recalled that Dangote Cement, with a capacity of about 51.6Mta throughout Africa, is the continent's top cement manufacturer. It is a fully integrated quarry-to-customer producer with a 35.25Mta production capacity in Nigeria, where it operates.
According to the claim, the Ibese factory in Ogun State has four cement lines with a combined installed capacity of 12Mta, while the Obajana plant in Nigeria's Kogi State has five lines with a total capacity of 16.25Mta, making it the largest plant in Africa.