Dangote Cement restarts clinker exports alongside strong first half to 2021

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Nigeria: Dangote Cement says it has resumed exporting clinker from its Onne and Apapa terminals to Cameroon. Two ships delivered 57,000t of clinker and 0.34Mt of clinker was exported by road in the first half of 2021. The cement producer started exports in 2021 but was forced to suspend them in April 2021 following high demand for cement domestically.

The group’s revenue grew by 44.8% to US$1.68bn in the first half of 2021 from US$1.16bn in the same period in 2020. Cement sales volumes rose by 26.1% to 15.3Mt from 12.1Mt. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 61% to US$853m from US$530m. In Nigeria cement demand was attributed to increasing housing infrastructure, commercial construction and government projects including roads and railways. Outside of Nigeria, strong performance was noted in the Republic of the Congo, Cameroon, Ethiopia, Senegal and Tanzania.

“This strong intrinsic performance is magnified by the lower second quarter results in 2020 due to the effect of Covid-19. The growth trend continues and we are focused on meeting the strong market demand across all our countries of operation,” said chief executive officer Michel Puchercos. He added that the group restarted clinker exports from Nigeria in the second quarter of 2021 following a ‘strategic decision’ to pause them in response to high demand domestically. The cement producer intends to commission its new 3Mt/yr Okpella plant in the third quarter of 2021. He also said that the company’s ongoing alternative fuels project is at an ‘advanced stage’ with procurement and installation of equipment occurring at all plants.

Last modified on 04 August 2021

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