- Shareholders hail N88bn dividend pay-out
BUA Cement Company has disclosed that the company will increase its cement export to neighbouring Niger republic and Burkina Faso to improve its Foreign exchange earnings.
Chairman of the Board of Directors of BUA Cement Plc, Abdul Samad Rabiu made the disclosure yesterday while addressing the concerns of shareholders at the Annual General Meeting of BUA Cement held in Abuja.
Rabiu said: “We are in a unique position bordering the Niger Republic and what we currently earn from export will boost our foreign exchange base.
“We are looking at increasing our exports to Burkina Faso once we commission our new 3 million metric tons line in Sokoto. We are going to dedicate 1.5million metric tons to export and we hope to earn around $180 million ( N112 Billion ), enough to take care of our foreign exchange needs.”
He said Burkina faso do not have a fully integrated cement plants with an annual import of 4 million Metric tons.
He lamented the increasing cost of diesel and the likely impact on the cost of cement per bag.
He said; “ we are currently buying Diesel at 3 times the price last year, from N250 per litre to over N700 p/ liter. The implication is that a truck of cement from Ogun state to Kano which use to cost around N450,000 now cost about N1.2million just on transport
“We want to continue to improve without raising the current price of cement.”
Speaking on the 3mmtpa greenfield plant in Adamawa, the Chairman said they are surveying raw materials availability for now.
“The contract has been signed and we have made some payment towards commencing the project.
“There is the consideration to commence construction activities or move to another site elsewhere with proven limestone reserves in commercial quantity”
Rabiu disclosed that the company’s ongoing projects will be completed in 2023 to increase the cement company’s installed capacity to 17 million metric tonnes per annum which will solidify BUA’s position in the Nigerian Cement industry as well as position the company to take advantage of export opportunities.
On his part, Engr Yusuf Binji, Managing Director, BUA Cement Plc, reaffirmed the company’s commitment to prioritizing excellence across all areas of business, and product quality whilst ensuring sustainability in its operations. Binji further added that when the installed capacity of the company increases by 2023, BUA Cement “will be better positioned to increase existing export volumes and, in the process, take advantage of some of the benefits of the African Continental Free trade Area”.
The shareholders who hailed the performance of the company in the face of the difficult operating environment unanimously approved the management proposal of N2.60k per share amounting to N88bilion in dividend pay-out.
This approval was given on the back of a strong financial performance in the year under review that recorded revenue growth of 22.9% from N209.4 billion in 2020 to N257.3 billion in 2021. Profits after Tax also rose by 24.5% to N90.1billion in the year under review
BUA Cement, reported a profit of N33.14 billion during the Q1 2022, representing 48.18% increase Y-o-Y.
Further analysis of the result shows that the company’s product categories improved, driving revenue growth in the period. Revenue growth for the period was at 58.50% year on year, recorded as N96.99 billion.