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Dangote Cement’s Offshore Plants Boost Revenue by 74%

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  • Dangote Cement’s Offshore Plants Boost Revenue by 74%

Sales recorded by Dangote Cement Plc plants across Africa significantly impacted on the revenue of the company for the first quarter ended March 31, 2017 by 74 per cent to N208.2bn.

The Chief Executive Officer, Dangote Cement, Onne van der Weijde, who stated this on Friday while presenting the company’s first quarter results to the Nigerian Stock Exchange, also said that the earnings per share for the quarter increased by 36.2 per cent to N4.25.

He said, “Dangote Cement produced record financial results in the first three months of 2017. Despite lower group volumes, we delivered significantly higher revenues and EBITDA after realigning prices late in 2016. Our new pricing strategy meant every tonne worked harder for us in Nigeria, delivering 78.4 per cent more EBITDA per tonne than the same quarter last year.

“We have now begun sourcing a significant amount of coal from Nigerian mines owned by our parent, Dangote Industries, and this has not only helped us to improve margins, but also reduced our need for imported coal and the foreign currencies needed to buy it.

“Our pan-African operations performed strongly, increasing sales volumes by 21 per cent and revenues by 74.2 per cent. Pan-African operations now contribute nearly 28 per cent of group revenues and we are pleased to report a good start for our new import facility in Sierra Leone. We will begin operations in Congo in the coming weeks, further consolidating our position as sub-Saharan Africa’s leading supplier of cement.”

The Federal Government recently lauded Dangote Cement for its efforts in making the country to be self-sufficient in cement production.

The government confirmed that Nigeria had attained self-sufficiency in the production of cement and was now an exporter of the commodity, ascribing the feat to Dangote Cement, which spearheaded the backward integration policy introduced by the government.

The Minister for Solid Minerals Development, Dr. Kayode Fayemi, who led a government team to the Dangote Cement plant in Ibese, Ogun State, said the government was happy with the leadership role played by Dangote Cement in executing the backward integration policy in the cement industry.

The minister said it was a success story that Nigeria, which a few years ago imported over 60 per cent of her cement needs, now could produce enough to meet local demands and still export to other nations.

Fayemi had said, “As you all know, as the Federal Government moves to diversify the economy away from oil; two areas the government is focusing on are agriculture and solid minerals, this is why we are embarking on a tour of mining operations across the country to know the challenges they face and what can be done to tackle those challenges.

“What Dangote is doing is marvellous. We need to commend them. The way they led the backward integration policy to turn around our fortunes in the cement industry. I am delighted to see the development here bigger than what I saw the last time. And we are looking at how we can replicate the success in the cement industry in other non-oil sectors of our economy.”

Dangote Cement is Africa’s leading cement producer with nearly 46 million metric tonnes per annum capacity across the continent, a fully integrated quarry-to-customer producer with production capacity of 29.25 million metric tonnes per annum in Nigeria.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd

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The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins

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Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

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Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020

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Revenue of OPEC Members to Drop to 18 Year Low in 2020

The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.

EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.

If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.

The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.

It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.

It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.

“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”

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