. Embraces alternative fuel to cut cost
Dangote Cement Plc announced a 6.2% to 20.8 metric tons (MT) increase in overall sales volume for the third quarter (Q3) of 2022. This was achieved despite the elevated inflation amid a very volatile global environment.
To further increase the supply of cement across its operational base, the company has also inaugurated its power plant at Okpella and is progressing well to deploy grinding plants in Ghana and Cote d’Ivoire.
Chief Executive Officer, Dangote Cement, Michel Puchercos, disclosed this while presenting the Q3’22 results to the Nigerian Exchange Ltd. (NGX), over the weekend, according to a statement.
Puchercos was quoted as saying that “To mitigate the impact of the significant increase in energy and AGO costs, we are strengthening our efforts to ramp up the usage of alternative fuels.
“So far this year, we have co-processed 101,553 tonnes of waste representing a 77% increase over 9M 2021. We are on track to commission our Alternative Fuel feed system at Obajana lines I and V, and Ibese line II in November. In addition, we are ramping up our investment in Compressed Natural Gas (CNG), to reduce our AGO usage”
Regarding the financials, he said Dangote Cement recorded an increase in revenue of ₦1.18trillion, up 15.2% compared to last year, and Group Earnings before interest, taxes, depreciation, and amortization (EBITDA) of ₦515.9billion or 0.2% increase with an EBITDA margin of 43.8%.
Dangote Cement is Africa’s leading cement producer with nearly 51.6Mta capacity across Africa. As a fully integrated quarry-to-customer producer, it has a production capacity of 35.25Mta in its home market, Nigeria.
Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.25Mta of capacity across five lines while the Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta.
The Gboko plant in Benue State has 4Mta while the Okpella plant in Edo has 3Mta. Through recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries.
To mitigate the impact of the significant increase in energy and AGO costs, we are strengthening our efforts to ramp up the usage of alternative fuels.
