Nigeria: Dangote Cement has reported a rise in net profit of 80.7% to US$340m in the first quarter of 2013 from US$188m in the same period in 2012. The Nigerian cement producer attributed the gain to an increased market demand of 15.7% (estimated 5.4Mt), improved gas supply and falling imports of cement into the Nigerian market.
Dangote's revenue rose by 39.5% to US$604m from US$433m. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 67.3% to US$398m from US$238m.
"Our 38% increase in volumes far outpaced the Nigerian market's strong growth of 16%," commented Devakumar Edwin, group managing director and chief executive of Dangote Cement. "Our gas supply has been better this year and that has driven margins upwards from the first quarter of 2012, when our new capacity at Ibese and Obajana was just coming on stream.
In its outlook Dangote reported that the strong demand had continued in April 2013. It noted that gas supply problems, which hindered its Obajan cement plant in particular, might continue in 2013. Cement exports are expected to make a modest contribution to 2013 sales.
