BY Onome Amuge.
Shareholders of BUA Cement Plc, one of the most capitalised entities on the Nigerian Exchange (NGX), reaped a bumper dividend harvest at their recently held annual general meeting where they considered the company’s financial report for the year ended December 31, 2021.
A total of N88.047 billion out of a profit after tax of N90.1 billion, representing 97.72 percent, was approved for payment as dividends to shareholders following a proposal presented for consideration and approval at the meeting by the board.
The amount to be paid out against the shares held by investors in the cement producer will work out at a princely N2.60 kobo for every 50 kobo ordinary share held by shareholders.
Shareholders who met in Abuja for their sixth annual meeting approved the huge amount following an excellent financial performance for the year under review presented by the management and board of the cement giant.
Specifically, the company saw its revenue grow by 22.9 percent during the period to N257.3 billion from N209.4 billion in 2020. During the same period profits after tax rose by 24.5 percent to N90.1 billion.
Abdul Samad Rabiu, chairman of the board, speaking to shareholders during the meeting, said: “Our performance in 2021 gives credence to our sound business model, value proposition, and the excellent team who responded to the challenges and opportunities that were confronted in the year under review. In the meantime, the BUA Cement brand continues to grow stronger in the marketplace. Our aim is to invest more in the cement industry until Nigeria is self-sufficient, and cement is readily available, accessible, and affordable for all Nigerians. We expect to continue this excellent performance for the foreseeable future.”
BUA Cement is currently pursuing some projects that are expected to be completed next year and Rabiu said upon their completion they would raise the company’s installed capacity to 17 million metric tonnes per annum, solidifying its position in the Nigerian cement industry, as well as position the company to take advantage of export opportunities.
Yusuf Binji, an engineer and managing director, BUA Cement Plc, reaffirmed the company’s commitment to prioritising excellence across all areas of business, and product quality whilst ensuring sustainability in its operations.
Binji 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”.
He disclosed that as part of its sustainability initiatives, the cement giant continues to be operationally conscious, socially engaged, and economically involved.
The company achieved a few milestones in the 2021 financial year including significant progress made on cleaner energy mix when it transitioned from the use of heavy fuel oils to liquefied natural gas (LNG) in its Sokoto plants.
It also completed the installation of a 50 megawatts gas power plant together with the modification of its kilns to enable the use of LNG in the pyro process to reduce BUA Cement’s carbon footprints leading to the full substitution of foreign coal with LNG.
Nigeria’s second largest cement company, BUA Cement Plc is the largest producer in the country’s North-West, South-South, and South-East regions, with operations in the strategic locations of Okpella, Edo State and Kalambaina, Sokoto State with its headquarters in Lagos, Nigeria.
On the Nigerian stock exchange, BUA Cement is the second most capitalised manufacturing company, and it says it is committed to quality, an attribute that differentiates it, and driven by its people, innovation, and technology. It has also positioned itself to be able to solve West Africa’s cement under-capacity, while driving economic growth and development.