Dangote Cement Plc says it is committed to transitioning all its trucks to run on Compressed Natural Gas (CNG) by 2025, as a significant step toward cleaner energy adoption in Nigeria.
It said that the gesture is a strategic move that aligns with the Federal Government’s agenda on promoting alternative energy for vehicles across the country, as well as reducing the nation’s dependence on fossil fuels.
Alhaji Aliko Dangote, Chairman, Dangote Cement Plc, made the assertion during the company’s 15 Annual General Meeting (AGM) on Tuesday, May 28, 2024, in Lagos.
The President Bola Tinubu-led administration, just one year in office, had announced plans to launch 2,700 CNG buses and tricycles to cushion the impact of fuel subsidy removal on ordinary Nigerians.
Dangote stated that the company decided to support the Federal Government’s quest to reduce dependence on fossil fuel, thereby enhancing the nation’s energy independence and contributing to a more secure energy future.
“We are now going to start using CNG vehicles, especially with the new policy of the Federal Government, launched by the Renewed Hope Agenda by His Excellency, President Bola Tinubu.
“By the end of next year, all our trucks that are operating in the company will be running on CNG, and that is a whole lot of money that we are going to invest.
“But we are equal to the task, and we will continue to push and make sure that we continue to make our shareholders happy,” Dangote said.
He also declared an increase of 50 per cent on dividend payout to shareholders, from N20.00 per share paid in the 2022 financial year to N30.00 for the last financial year ended Dec. 31, 2023.
Dangote said that the company achieved double-digit growth in revenue of N2,208.1 billion, while group Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) reached a record high of N886.1 billion, increasing by 25.1 per cent.
He said the 2023 results showed that Africa’s largest cement manufacturer recorded improvement in all performance measurement indicators with group revenue rising by 36.4 per cent to N2,208.1 billion.
He added that the company’s Profit After Tax (PAT) was up by 19.2 per cent to N455.6 billion while earnings per share went up by 18.8 per cent at N26.47.
Dangote noted that the company’s impressive performance was in fulfilment of the promise and enhanced Return on Investments (RoI) to its shareholders and other stakeholders, assuring them that next year would even be better.
The business mogul revealed that efforts were ongoing to ramp up production with the construction of a new plant of 6 million metric tonnes per annum at Itori, Ogun State.
“This outstanding EBITDA performance was underpinned by our robust cost control measures and our diverse pan-Africa operations.
“The latter acted as a cushion, providing resilience to country-specific risks, while the former enhanced our overall profitability.
“Our pan-Africa operations now contribute 41.2 per cent to the group’s overall volumes and we made significant strides in our expansion initiatives, with the successful launch of operations at our 0.45Mta grinding plant in Ghana, increasing our total installed capacity to 52.0Mta.
“Furthermore, our 1.5Mta grinding plant in Côte d’Ivoire is making substantial progress and is nearing completion and lastly, we have commenced construction on our 6Mta Itori plant in Ogun State, a crucial step in supporting our ambitious export goals,” he said.
Group Managing Director, Dangote Cement Plc, Mr Arvind Pathak, said that 2023 was yet another testament to the effectiveness of the company’s management’s diversification strategy, in spite of the challenging macroeconomic conditions.
Pathak said that in response to the heightened inflationary environment, the company implemented new and innovative business strategies that helped to drive up revenues, contain costs, and protect margins.
These initiatives, he stated, included fuel mix optimisation, propelling the use of alternative fuels to replace more expensive fossil fuels.
“We also began the phased transition from diesel power trucks to full Compressed Natural Gas (CNG) trucks,” he said.
Mrs Bisi Bakare, Chairperson, Pragmatic Shareholders Association, lauded the company for what she described as a huge dividend payout even when many other companies could not pay their shareholders a dime because they declared losses.
She stated that the shareholders were happy, and expressed optimism that with the way the management has steered the company in the face of the current economic downturn, the 2024 dividend will be higher.
Also, President of the Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, appreciated the company’s board and management for a job well done.
He commended Dangote for his patriotism and dedication to the cause of Nigeria and her people with his decision to reduce the prices of his petroleum products.
He expressed hope that the price of Premium Motor Spirit popularly called petrol would come down once the Dangote Refinery rolls out the product soon.
By Rukayat Moisemhe
