Company News

BUA Cement Grows Profit by 41.4% N61 Billion in H1 2022

BUA Cement Plc, one Africa’s leading cement manufacturing companies, grew revenue to N188.562 billion in the first half (H1) of the year.

Published

1 year ago

July 25, 2022

Samed Olukoya

BUA Cement Plc, one Africa’s leading cement manufacturing companies, grew revenue to N188.562 billion in the first half (H1) of the year.

The company disclosed this in its unaudited financial statement obtained by Investors King.

This represents a 51.73% increase from N124.278 billion reported in the first half of 2021. Cost of sales rose by 47.38% to N97.504 billion from N66.158 billion announced in H1 2021.

As expected, gross profit increased from N58.120 billion to N91.058 billion, an increase of 56.67%. Other income more than double from N72.576 million filed in the corresponding period of 2021 to N200.138 million.

Surprisingly, selling and distribution costs rose more than 130% from N3.496 billion to N8.060 billion. Operating profit stood at N77.737 billion, a 53.86% increase from N50.524 billion achieved in H1 2021.

A 245% jump in net finance costs to N2.845 billion dragged slightly on profit before tax in the period under review.

Still, profit before tax rose 50.69% from N74.891 billion in H1 2021 to N49.700 billion.

For income and deferred taxes, BUA Cement paid N13.527 billion to record N61.364 billion profit after tax, a 41.4% growth from N43.396 billion recorded in the same period of 2021.

Earnings per share improved to 181 kobo from 128 kobo in H1 2021.

Meanwhile, earlier today BUA announced plans to borrow money from International Finance Corporation (IFC) to expand Sokoto’s production capacity from 2 million tons per annum (MTPA) to 8 MTPA and other projects.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Company News

Conoil Plc Declares N1.73 Billion Dividend

Published

1 day ago

September 25, 2023

Investors King

Conoil Plc announced its intention to pay N1.73 billion in divided to its shareholders for the 2022 financial year. This translates to N2.50 per share.

The major oil marketer revealed these impressive figures after its 53rd Annual General Meeting, held in Uyo, Akwa Ibom State.

Despite the challenging economic landscape in Nigeria, Conoil demonstrated remarkable growth with its Profit Before Tax surging by an astounding 60.1 percent to N6.13 billion in 2022, up from N3.83 billion in the preceding year.

This performance also translated to a 60 percent increase in Profit After Tax, soaring from N3.08 billion to N4.96 billion.

Conoil Plc’s gross earnings rose by 5.1 percent to N145.8 billion in the 2022 financial year, compared to N138.2 billion in 2021.

Shareholders unanimously approved the proposed dividend payout, reflecting their confidence in the company’s ability to navigate a challenging business environment.

Dr. Mike Adenuga, the Chairman of Conoil Plc, expressed the company’s commitment to creating value for shareholders and ensuring a growing share price.

He emphasized their consistent ability to improve operational margins and expand across all locations, focusing on delivering exceptional service to customers.

Looking ahead, Adenuga acknowledged potential challenges in the ever-changing geopolitical and socio-economic landscape but assured shareholders that Conoil would remain focused on strategies that yield dividends.

He highlighted the government’s reform initiatives, including the elimination of petrol subsidies and foreign exchange market reforms, as opportunities for growth.

Company News

Dangote Refinery Controversy: Safety, Quality, and Financial Woes Unveiled

Tension Between Aliko Dangote and NNPC Raises Concerns Over Nigeria’s Oil Industry

Published

4 days ago

September 22, 2023

Investors King

The Dangote Refinery, an ambitious project by Africa’s wealthiest man, Aliko Dangote, has found itself engulfed in a whirlwind of controversy, pitting Dangote against the Nigerian National Petroleum Corporation (NNPC).

This recent dispute, marked by safety concerns, incomplete construction, and financial woes, has left many questioning the ethics, quality, and viability of Africa’s largest refinery.

Sources close to the situation reveal that Aliko Dangote is seeking the elusive license to commence operations, the final crucial step before production can begin at the refinery.

However, the NNPC, Nigeria’s regulatory body, has balked at granting the license due to legitimate safety concerns, chiefly stemming from the incomplete status of the facility.

Also, Dangote’s bid to purchase crude oil from the NNPC was met with a firm denial, citing the refinery’s incomplete status as a deterrent. This has sparked allegations that Dangote may be considering unconventional methods, such as sourcing Nigeria’s crude through trading houses, which could be viewed as circumventing established procedures.

Even if Dangote manages to secure the necessary crude oil, concerns regarding safety and product quality persist. Workers within the Dangote Group, as well as contractors and some NNPC officials, have voiced apprehensions about commencing refinery operations prematurely.

The current state of the refinery only allows for the initial phase of crude distillation, a process akin to operations found in illegal refineries within the Niger Delta region. The unfinished catalytic cracking unit further amplifies worries about the quality of refined products.

Amid these concerns, it appears that Dangote’s motivations may be driven by financial pressures. Reports suggest that the Dangote Group is grappling with substantial debt, potentially jeopardizing the company’s stability if it fails to secure additional funds for loan repayments by December. This financial strain could be the driving force behind Dangote’s eagerness to obtain the operating license, even without the refinery being fully ready.

Recalling events from earlier this year, the uncompleted refinery was hastily commissioned by former President Buhari. This move aimed to grant Dangote access to additional equity funding from the Nigerian Government and secure a crude oil allocation of 300,000 barrels per day. This allocation was intended to be sold to raise funds for creditors and aid in completing the refinery.

However, when the new administration of President Tinubu took office, it was discovered that the refinery was far from completion, raising suspicions that it was falsely commissioned to secure the crude allocation for export.

The ongoing standoff between Aliko Dangote and the NNPC illuminates broader issues surrounding safety, quality, and financial stability plaguing the Dangote Refinery project.

Company News

Dangote Industries Limited Reaffirms Commitment to Bolstering Employment Opportunities for Nigerians

Dangote Industries Limited has underscored its unwavering dedication to fostering employment opportunities and advancing the cause of decent work for the Nigerian populace.

Published

1 week ago

September 19, 2023

Investors King

Dangote Industries Limited has reiterated its steadfast investment in critical sectors of the nation’s economy to facilitate job creation and stimulate the growth of meaningful employment.

Speaking during the induction ceremony of a new cohort of graduate trainees, Mr. Aliko Dangote, the President of Dangote Group, highlighted the company’s transformative journey from a commodity trading entity to a manufacturing powerhouse.

This evolution is a testament to their unwavering mission to contribute significantly to Nigeria’s industrial development, consequently positioning the nation prominently in the African industrial landscape.

“The core mission of our group is to improve the lives of the people by addressing their fundamental needs. This noble objective can only be achieved through the production of essential goods that cater to the needs of our people. This is why we have made massive investments across various sectors of the economy,” stated Mr. Dangote.

Mr. Dangote further emphasized the pivotal role that manufacturing plays in meeting the needs of the populace and its potent ability to combat poverty by creating job opportunities.

He commended the ongoing graduate trainee program as a tangible manifestation of their commitment to employment generation, recognizing its positive impact on the lives of countless individuals.

In a strategic move aimed at fulfilling their goal of job creation and addressing the basic needs of the Nigerian people, Mr. Dangote revealed that his Group has expanded its business portfolio with three significant investments valued at over $20 billion.

These investments encompass the refinery, petrochemical, and fertilizer sectors, with the potential to not only bolster the nation’s economy but also reinvigorate Nigeria’s foreign exchange reserves.

Also, these initiatives are anticipated to generate approximately $16 billion in foreign exchange earnings and offer an impressive aggregate of 250,000 jobs, thereby contributing to the reduction of youth unemployment in the country.

Dangote Industries Limited remains unwavering in its commitment to making substantial contributions to Nigeria’s industrial landscape, and its dedication to providing employment opportunities that uplift the lives of Nigerians is undeniably resolute.

The Group’s continuous investments in critical sectors reflect a steadfast commitment to shaping a brighter future for both the nation and its people.