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Market Digest Nigeria

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Dangote Sugar Refinery targets 1.5m tonnes sugar production

Dangote Sugar Plc says it is has set a target to produce 1.5 million tonnes of refined sugar from locally grown sugarcane in the next six years.

Mr Abdullahi Sule, the company’s acting Managing Director made this known at the company’s fact behind the figures at the Nigerian Stock Exchange (NSE) in Lagos on Tuesday.

Sule said that the company was also projecting to produce 130 million litres of ethanol across all its sites.

According to him, the company will also generate not less than 100,000 jobs under its master plan.

Sule explained that the company remained a zero debt entity since it started operations, adding that N106 billion was required to fund the expansion project.

“We are going to spend about N106 billion to expand its operation during the preview period of which 20 per cent of the fund will come from equity,’’ he said.

Sule noted that 20 per cent of the fund would be raised through equity, adding that the board of directors would decide the direction of the equity raising programme.

“Dangote Sugar remains a zero debt company. In the first three years of the project, we will spend about N106 billion and the board members have decided that 20 per cent would be raised through equity.

“By the end of this year, we will be able to fund the N20 billion but it is taking us time to decide whether it is through extra-ordinary meeting or through loan.

“The company is still in position to borrow and still pay dividends,’’ he said.

Sule, however, assured that the company would continue to pay dividends.

“We are confident that this ambitious goal is achievable and we will leave no stone unturned in seeing that it becomes a reality,” he said.

Sule added that about N101 billion had been committed toward actualisation of the company’s Backward Integration Project (BIP) targets.

“To date, about N101 billion has been committed toward the actualisation of these projects on equipment purchase, land studies and survey, and sensitisation campaign for the local communities,” he said.

The News Agency of Nigeria (NAN) reports that the company for the financial year ended Dec. 31, 2016 posted a turnover of N169.72 billion against N101.06 billion achieved in the comparative period of 2015.

Profit after tax stood at N14.39 billion against N11.14 billion in 2015, while profit before tax rose to N19.61 billion in contrast with N16.16 billion in the previous year.

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