Dangote Sugar projects N20bn dividend

Dangote Sugar projects N20bn dividend

 

 

 

 

 

August 29, 2007/ Punch

 

 

The Chairman of Dangote, Sugar Refinery Plc, Alhaji Aliko Dangote on Tuesday said that the company would pay a dividend of N20bn for the year ending December 31, 2007.

 

DSR, which was listed in March 2007, had paid a dividend of N11.5bn for the year ended December 31, 2006 and promised a quarterly dividend.

 

 

The company paid the first interim dividend of N4bn for the first quarter ended March 31, 2007.

 

 

Speaking at the facts-behind-the-figures presentation at the Nigerian Stock Exchange, Dangote said that the second interim dividend of N4bn for the second quarter ended June 30, 2007, would be paid on Monday.

 

 

According to him, another N12bn would be paid for remaining half of the year, bringing the total dividend to N20bn. He expressed optimism that the company would record higher profitability for 2007, given the improved production capacity.

 

 

Explaining further, the Managing Director of DSR, Mr. Abdulahi Sule, said that already the company had surpassed the profit forecast made for the half year ended June 30, 2007.

 

 

Sule said that the company projected a profit after tax of N8.9bn but recorded N11.5bn, adding that earnings per share was N2.30 compared with projection of N1.77 made.

 

 

The managing director said but for some disruptions in operations due to numerous public holidays during the general elections, and cut in gas supply, the company would have recorded better results.

 

 

“However, everything is working well now. The elections are over and the gas supply is steady. We are expecting a better performance in the remaining half of the year,†he said.

 

 

Sule disclosed that the company was expanding its production capacity from the current 4,000 metric tonnes per day by an additional 4,000 metric tonnes. According to him, the expansion would be completed by the first quarter of 2008.

 

 

On the export of the company’s product, he said that about 250 containers of the sugar would be exported to Ghana by next month.

 

Meanwhile, the Nigerian Stock Exchange has approved the application of the Dangote Flour Mills Plc for an initial public offering and eventual listing.

 

 

The Director-General of the NSE, Prof. Ndi Okereke-Onyiuke, disclosed this on Tuesday, urging investors to get prepared for another good investment opportunity from the Dangote Group.

 

 

 

 

DMF had applied to offer 25 per cent of its shares or 1.25billion to investors at N15 per share.


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