Ndubuisi Francis in Abuja
Cement Company of Northern Nigeria (CCNN), has posted a profit four per cent profit, growing from N1.2 billion in 2015 to N1.25 billion in 2016, despite the harsh operating environment.
The Chairman, Dr. Abdulsamad Rabiu who disclosed this at the companyâ€™s 38th annual general meeting in Abuja, stated that even though the economic challenges impacted negatively on the average price of cement, CCNN was able to continue on the path of profitability.
This development, he stated, was attributable to the strict cost-efficiency regime which the management of the company was able to maintain during the period, adding that this was done to promote strong value for the shareholders of the company.
He said: “Performance of the company during the year 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,” Rabiu said.
On why the board did not recommend the payment of any dividend to the 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 terms survival of the company.”
Rabiu added that the board was 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.