Tuesday, November 3, 2020 / 05:39 PM / Press
Release by BUA Cement / Header Image Credit: BUA Cement
BUA Cement, one of Africa's largest cement producers, has declared revenues of N156.6billion in its 2020 third quarter (Q3) financial results for the 9-months ended, September 2020 - an increase of 21% from N129.4billion in the corresponding period of 2019. This was announced in a filing to the Nigerian Stock Exchange (NSE). According to the filing, BUA Cement's Profit After Tax (PAT) also grew by 24% to N53.57billion from the corresponding period in 2019, due to a growing appreciation of BUA Cement's product offerings.
Speaking on the result, alongside other activities undertaken during the quarter, Engr. Yusuf Binji, Managing Director/CEO of BUA Cement, acknowledged the positive impact of a less than anticipated COVID-19 pandemic shock on the populace and economy; the expected resilience of the private sector and a short rainy season. According to him, "this has been a very heartwarming and resilient performance, underpinned by the continued quality that characterizes the BUA Cement product offerings as we see more end-users able to differentiate the attendant benefits of using our products. Expectedly, we witnessed a resurging demand from a resilient private sector - within and outside Nigeria, as the lockdown was eased, coupled with a short rainy season: despite flooding in some parts of Nigeria and Niger".
"During the period, we fulfilled our commitment to build sustainable communities by successfully relocating community members from Gidam Bailu and Gidam Datti to Girabshi, a close-by settlement purchased and developed by BUA Cement in Sokoto State. Subsequently, we have been involved in the electrification of the settlement, provision of clean water and the construction and equipping of a school, a healthcare centre etc. Bags of cement alongside cash donations were made to each of the 387 households, as we pursue an inclusive, safe, resilient and sustainable environment. Apart from this, electricity transformers were donated to the Okpella community in Edo State, including patrol vehicles to reinforce existing security measures".
"In view of our ongoing expansion activities alongside working capital requirements, we have concluded on plans to approach the bond market. This decision to approach the market form part of the considerations put before shareholders at our last Annual General Meeting (AGM) in October; thus, enabling us take advantage of the low interest rate environment, in addition to the discontinuance of funding sources through related-parties transactions".
"Despite 2020 being a challenging year, we have been buoyed by a growing customer base aided by our deliberate decision to focus on quality. Understandably, the year ahead is fraught with challenges, as global and domestic economies, individuals and businesses make adjustment to disruptions from the pandemic, yet, we are excited because of the continued resilience from the private sector, particularly with the increased appreciation of our product offerings; upgrades and development of the infrastructure stock by governments; the possible commencement of the African Continental Free Trade Agreement (ACFTA); the commissioning of our third line at Kalambaina, alongside the first phase of the energy diversification project, which would see the introduction of Liquefied Natural Gas to our operations".
BUA Cement Plc is Nigeria's second largest cement company and the largest producer in its North-West, South-South and South-East regions; with a combined installed capacity of 8million metric tonnes per annum and with plans underway to increase existing capacity to 11million mtpa, through the commissioning of a new 3million mtpa plant by the first half of 2021 in Sokoto State, Nigeria. With its Headquarters in Lagos, Nigeria, BUA Cement operates strategically from Okpella, Edo State and Kalambaina, Sokoto State.