Dangote Cement shareholders’ equity drops by 0.78%

Dangote Cement Plc has reported a 0.78 per cent negative drop in its shareholders’ equity for the year ended 2020.

The company’s 2020 audited financial statement released on Tuesday showed that the firm’s total shareholders’ equity dropped by N6.97bn to N890.97bn in the year under review from N897.94bn in 2019.

The company also recorded a drop in its net financial costs, which fell to N14.17bn from N50.06bn, representing 71.69 per cent decline.

Further analysis on the company’s financial statement, however, showed that it reported a rise in its Profit Before Tax by 49.04 per cent to N373.31bn from N250.48bn in 2019.

Profit After Tax also increased by 37.68 per cent to N276.07bn from N200.52bn in the review year.

The company’s basic earnings per share also increased by 36.90 per cent to N16.14 in 2020 relative to N11.79 in 2019. Its revenue increased by 15.98 per cent to N1.034tn from N891.67bn in 2019.

Meanwhile, having declared N16 final dividend, Dangote Cement is begging its shareholders to lay claims on the company’s unclaimed dividend, which rose to N4bn by the end of 2020.

Nigeria’s most capitalised company made the call in its 2020 financial report.

Dangote on Tuesday declared a dividend of N16 ordinary 50 kobo share, a development that triggered a N4 jump of its share price to N224 per share in less than 24 hours.

Nigerian government has a new policy of borrowing dividend, which has remained unclaimed for six years.

With the Finance Act 2020, any unutilised amount in a dormant bank account maintained in or by a Deposit Money Bank would also be borrowed.

The funds would be managed by the Debt Management Office through the Unclaimed Dividend Trust Fund, the government said.

In 2020 alone, the cement manufacturer said its unclaimed dividend grew by N500m to N4bn, an increase from the N3.5bn unclaimed dividend held in 2019.

Ehime Alex
Ehime Alex
Ehime Alex reports the Capital Market, Energy, and ICT. He is a skilled webmaster and digital media enthusiast.

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