Sokoto Cement declares N879m dividend for 2014

SOKOTO Cement Company Plc has declared a dividend of 35 kobo per share out of a total dividend of N879.67 million in 2014 fiscal year.

Speaking at the yearly general meeting of the company in Abuja, the Chairman of the company, Abdulsamad Rabiu, stated that the firm also posted a turnover of N15.119 billion, compared to N15.311 billion in 2013.

According to him, the firm recorded a profit after tax of N1.918 billion compared to N1.559 billion in the year 2013. The Chairman disclosed that in the year under review, the company had a longer maintenance stop for a planned replacement of a new kiln shell segment.

The production stop together with a somewhat weaker demand for cement in the second half of the year caused a small reduction in the sales volume compared to the previous year.

On the other hand, the price level increased compared to 3013. Together with a strict cost control this ensured the improvement in the financial result” he said.

On the dividend payments,the chairman further said that the board resolved to recommend the payment of a gross dividend of 35 kobo per share compared to last year’s 70 kobo per share because of the cash flow situation.

He however, said that the plan to phase out paper-based dividend warrants is still on course. He called on shareholders who are yet to fill the e-dividend mandate and submit to the registrars to do so.

In previous reports, the benefits of e-dividend are prompt crediting of shareholders’ bank accounts with their dividends and their CSCS account with bonus shares.

The compliance can therefore not be over-emphasised” he noted. He described the company’s present challenges to, include the use of biomass as a supplementary kiln fuel saying that this type of energy source is now at the practical capacity limit and it contributes to better control of energy. “The heavy fuel oil supply situation was however, erratic for a substantial part of the year.

The electricity supply situation from the national grid is sufficient. This is hampering the production from time to time. Though, the increase in the capacity of the company’s power plant is expected to be completed in June 2015 and the company will then be self-sufficient with electricity power”, he said, adding that the project for increasing the production capacity and converting the existing production line to solid fuels like coal is on-going and is expected to reach completion by early 2017.