From Uche Usim, Abuja
Cement Company of Northern Nigeria (CCNN) has declared a profit of N1.2 billion for the 2016 fiscal year, despite recession.
The Chairman of the company, Dr. Abdulsamad Rabiu, who made the disclosure recently in Abuja at the company’s 38th Annual General Meeting (AGM), said the profit grew by 4 per cent from N1.2 billion in 2015 to N1.25 billion in 2016.
“Despite the fact that average cement price was impacted negatively by economic challenges, the company was able to continue on the path of profitability,” he said.
According to him, the success recorded sprang from plugging various loopholes and running a very efficient company.
“We did that in order to promote strong value for shareholders of the company. Performance of the company in 2016 was a reflection of the board’s concerted efforts to ensure that CCNN continued to strive with better performance and enhanced shareholder value, despite the massive challenges in the operating environment.
“CCNN is still dominant in its home market in Sokoto, Kebbi and Zamfara due to the quality of its cement and customer loyalty. This has contributed to the continued survival of the company in the market despite the numerous challenges.”
On why the board did not recommend the payment of any dividend to shareholders despite its profitable result, Rabiu said this was done to enable management carry out critical investments.
He said: “The board resolved not to recommend the payment of any dividend this year, in view of the challenges being faced by the company on worn out generators, cooler tubes and kiln shell, which requires critical investments in replacements and repairs. This is meant to ensure the long term survival of the company.”
He said the board is optimistic that the cement industry in Nigeria has an excellent long term outlook owing to the huge infrastructure requirements in the country as well as the neighbouring countries in the West African sub-region.