Cement companies listed on the Nigerian Stock Exchange (NSE), Cement Company of Northern Nigeria (CCNN), Lafarge Africa Plc and Ashaka Cement Plc, are under pressure to pay improved dividend for the 2015 financial year following the N181 billion dividend paid by Dangote Cement Plc for the year ended December 31, 2015.
After recording a profit after tax of N181 billion for 2015, directors of DCP Plc recommended a N136 billion dividend. The dividend, which translates into N8.00 per share, showed an increase of 33 per cent compared to the N6 paid the previous year.
According to analysts, considering the performance of DCP Plc, shareholders are expecting other cement firms to also end the year well and declare significant dividends.
But considering the nine months performance of the companies, the analysts contended that investors in these companies may expect lower dividend.
For example, CCNN had recorded a PAT of N1.647 billion for the nine months ended September 2015, which was lower than the N1.729 billion recorded in the corresponding period of 2014.
Similarly, Lafarge Africa Plc ended its nine months with a PAT of N29.5 billion, down from N31.2 billion in the corresponding period of 2014.
Ashaka Cement recorded a PAT of N3.698 billion for the nine months in 2015, which is lower than N4.365 billion.
CCNN paid a dividend of 35 kobo per share, Lafarge Africa paid N3.60 and Ashaka Cement 45 kobo. Confirming the pressure some of these companies are facing, Mr. Eric Akinduro of Ibadan Zonal Shareholders Association, said the companies will definitely do something but would not be able to match DCP’s dividend payment.
“The other companies will do something but they cannot march DCP. What I have come to understand about dividend payment is the policy of the board to always give something out to investors and make them happy which Dangote Group always kin about despite the none conducive macro environment,” Akinduro said.
Speaking in the same vein, Mr. Olufemi Timothy of Renaissance Shareholders Association said “Our expectations could not be less. Other cement companies will equally post good dividend. DCP is the market leader. We are optimistic about the others too.”