By: Amadi Vincent Uzoma
At the 15th Annual General Meeting (AGM) of Dangote Cement Plc in Lagos, Chairman Aliko Dangote announced that the company is preparing to run thousands of its delivery trucks on compressed natural gas (CNG), thus consistent with the federal government initiative to adopt alternative solutions fuel for agency vehicles.
Dangote emphasized that this transition supports the government’s efforts to reduce dependence on fossil fuels, enhance Nigeria’s energy independence, and contribute to securing its energy future.
We will now start using CNG vehicles, especially with the new policy of the Federal Government, initiated by His Excellency President Bola Tinubu. “By the end of next year, all trucks running in our company will run on CNG and that is a huge amount of money that we will invest. “But we are up to the task and we will continue to push forward and ensure that we continue to keep our shareholders happy,” Dangote said.
Additionally, Dangote announced an increase in the dividend to shareholders, from ₦ 20.00 per share in FY22 to ₦ 30.00 per share in FY23, an increase of 50%.
He assured shareholders of the company’s commitment to improving return on investment (ROI) despite economic challenges. Dangote highlighted the company’s efforts to ramp up production with a new plant at Itori, Ewekoro Local Government Area of Ogun State, expected to have a capacity of 6 million tonnes per annum.
Despite logistical challenges at Apapa Port in Lagos, the plant is expected to be completed on schedule. Celebrating the company’s strong performance, Dangote recorded a 36.4% increase in group revenue to N2,208.1 billion and a 19.2% increase in profit after tax (PAT) to N455.6 billion. Earnings per share increased 18.8% to ₦26.47.
He attributed this success to strong cost control measures and the diversity of operations across Africa, which currently contributes 41.2% of the Group’s total volumes.
“This exceptional EBITDA performance was supported by strong cost controls and our diversified operations across Africa. “The latter acted as a cushion, providing resilience to country-specific risks, while the former improved our overall profitability. Our pan-African operations currently contribute 41.2% to the Group’s total volumes,” Dangote explains.
Group CEO Arvind Pathak echoed Dangote’s views, emphasizing the company’s diversification strategy. “Our various operations act as a cushion, ensuring resilience to country-specific risks. Volumes across Africa increased by 12.7% and now account for 41.2% of the Group’s volumes. “As a result, pan-African revenue grew a record 123.2% to ₦925.9 billion, while EBITDA more than quadrupled to ₦263.7 billion,” Pathak Pathak also mentioned the response The company’s response to inflationary pressures is by implementing an innovative business strategy, including optimizing its energy mix and converting from diesel to CNG trucks.
Shareholders praise the company’s performance and dividend payments. Ms. Bisi Bakare, President of the Pragmatic Shareholders Association, expressed optimism about the future dividends brought by the company’s management during the economic downturn.
Dr. Umar further recognized Aliko Dangote’s passion for Nigeria, praising him for his unwavering patriotism. He expressed his confidence in Dangote Refinery’s potential to lower the cost of Premium Motor Spirit (PMS) once the refinery’s production is fully operational.
