At the close of trading activities last year, Dangote Cement Plc emerged the most capitalised company on the Nigerian Stock Exchange.

This was despite the downturn that saw the NSE’s All-Share Index closing with a decline of over 16 per cent. The company ended the year with a market capitalisation of N1.716tn.

This was followed closely by the shares of Nigerian Breweries Plc, which closed the year with capitalisation of N714bn.

A statement by the company on Friday cited market analysts as having predicted that going by this trend, the New Year would be a better year for Dangote Cement.

This, according to them, was informed by the prospects expected from the six-metric-tonne-Ibeshe new cement plant, which is expected to boost its earnings and ultimately increase return on shareholders’ investments.

The statement added that apart from benefitting the shareholders, the Ibeshe plant located near Ilaro, in Ogun State, is also expected to boost the labour market, as it is expected to create over 7,000 jobs.

The company had posted a turnover of N173bn, showing an increase of 18.6 per cent compared to N146.6bn in the corresponding period of 2010.

Its profit after tax rose by 22 per cent to hit N92.8bn, thus, the company paid out a dividend of N4.25 per share for 2010, comprising N2 interim dividend and N2.25 final dividend.

Analysts at Afrivest West Africa Limited said that the performance of the Cement Company was broadly in line with their expectations.

They said, “Profitability margins improved over the period as profit before tax and profit after tax margins stood at 54 per cent and 53.4 per cent from 52.5 per cent and 51.4 per cent in 2010.

“On a quarterly basis, the improvement shows that margins are more pronounced, with quarterly margins of 57.8 per cent and 57.5 per cent for the period from 52.7 per cent and 51.9 per cent for pre and post-tax margins, respectively.”

The President, Dangote Group, Alhaji Aliko Dangote, was quoted as saying that that with the new plant, means of livelihood for Nigerians would come through direct and indirect jobs.

He assured stakeholders that with his group’s massive investments in the cement production, not only will Nigerians enjoy reduced price stability, but also the nation would become exporter of the commodity to other countries.

Source: Punch/Udeme Ekwere