Dangote Cement pretax profit down 3.2%

Dangote Cement's pretax profit fell 3.2 per cent to NGN184.68bn (US$928m) last year due to a gas shortage and the impact of wet weather on construction activity, the company said on Thursday.

The company said sales volumes in its domestic market of Nigeria fell 3.2 per cent to 12.87Mt, weaker than the decline in the overall market of 0.8 per cent to 21Mt.

Full-year revenues for 2014 climbed to NGN391.63bn during the 12-month period to 31 December, up from NGN386.17bn the previous year, due to growth from Dangote's other African operations, the company said.

The cement company said unreliable gas supply at its Obajana plant in Nigeria, which accounts for around 35 per cent of the market, constrained production, while prolonged rainfall in the second half of last year led to a slowdown in construction.

"Revenue increased mostly due to South African operations," it said in a presentation, adding that long term growth in Nigerian market remains robust at more than 10 per cent.

Dangote Cement expects to ease capital expenditure this year to NGN191bn, down from NGN217.2bn last year, as expansion projects across the continent gather pace. It expects new cement plants in Cameroon, Zambia, Ethiopia and Tanzania to be commissioned this year.