High energy costs affecting Dangote cement production – CEO

THE Chief Executive Officer, Dangote Cement, Michel Puchercos, says a significant increase in energy and diesel costs is impacting negatively on the production and supply of cement products.

Puchercos, in a statement titled, ‘Dangote Cement Deploys Grinding Plants in Ghana and Cote D’Ivoire’, issued yesterday by the corporate communications department of the group, said the firm was, however, strengthening efforts to ramp up the usage of alternative fuels and execution of export-to-import strategy.

The firm stressed that it was working on reducing dependence on imported inputs and boosting local production.

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

The Dangote Cement boss disclosed that the firm was seeking support to drive demand ahead of the rainy season through the introduction of the third season of its National Consumer Promotion ‘Bag of Goodies 3.’

On the operational side, the cement firm is ramping up production at its Okpella plant, in Nigeria, and progressing well to deploy grinding plants in Ghana and Cote d’Ivoire.

According to a statement by the firm, Ghana and Cote d’Ivoire will join the list of some other African countries when the cement grinding plants finally go into operation.

Other countries where the Dangote Group is producing cement are Cameroon (1.5mta clinker grinding), Congo (1.5mta), Ghana (1.5mta import), Ethiopia (2.5mta), Senegal (1.5mta), Sierra Leone (0.5mta import), South Africa (2.8mta), Tanzania (3.0mta), and Zambia (1.5mta).

In a related development, the cement firm has announced a group revenue of N808 billion for the half-year ended June 31, 2022. It also added that winners have started to emerge from the ongoing Bag of Goodies Season 3 promo.






     

     

    According to the cement company’s results made available on the website of the Nigerian Exchange (NGX), revenue rose by 17 per cent, compared to N690.55bn recorded in 2021.

    The company also reported a group sales volume of 14.2mt, consisting of 9.3mt done by Nigerian operations, while the balance was contributed by operations in other African countries.

    Puchercos, speaking on the results, said, “Despite the elevated inflation due to a very volatile global environment, the first half of 2022 has been positive.

    “We recorded increases in revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) that drove strong cash generation across the Group. We recorded revenue of ₦808.0bn, up 17 per cent compared to last year, and Group EBITDA of ₦373.2bn, up 6.3 per cent, with an EBITDA margin of 46.2 per cent.”

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