Cement Company of Northern Nigeria (CCNN) Plc. has recorded a turnover of N13.04 billion in 2015 operations.
Major highlights of the audited report and accounts of CCNN for the year ended December 31, 2015 showed that the company recorded pre and post tax profits of N1.55 billion and N1.20 billion respectively on a turnover of N13.04 billion during the year. Gross profit stood at N3.96 billion.
The company improved its intrinsic value during the year with net assets per share rising by seven per cent from N7.52 in 2014 to N8.07 in 2015. Total assets also rose by nine per cent from N15.78 billion to N17.15 billion. Non-current assets had grown by 21 per cent from N8.37 billion to N10.12 billion. Shareholders’ funds also improved by seven per cent from N9.45 billion in 2014 to N10.14 billion in 2015.
The Board of Directors has recommended a total of N125.7 million to shareholders as cash dividends for the 2015 business year, representing a dividend per share of 10 kobo.
The dividend recommendation implies that the board of directors took a long-term and prudent view of dividend pay out by retaining higher net earnings to support the company. The board decided to reduce the pay out ratio from about 23 per cent of net profit in 2014 to 10.5 per cent of net profit in 2015, flowing back larger profit into the company”‘ s operations.
Commenting on the results, Managing Director, Cement Company of Northern Nigeria (CCNN) Plc, Malam Ibrahim Aminu, said the company’s performance in 2015 showed steadiness and resilience when viewed against the background of macroeconomic challenges especially in the areas of energy supply and foreign exchange.
Without access to gas because of its location in Sokoto, Sokoto State, CCNN depends on Low Pour Fuel Oil (LPFO), which it sources from Nigeria National Petroleum Company (NNPC), Kaduna Refinery. CCNN is therefore exposed to twin risks of the high cost of LPFO and the fluctuation in supply. LPFO price accounts for 65 per cent of the company’s cost of production.
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