Dangote Cement projects a profit of $910 million in 2012

Aliko Dangote. PHOTO/File

(Reuters) – Nigeria’s biggest listed company, Dangote Cement revealed early this month that it expects pretax profit to hit 143 billion naira (US$910 million) in 2012 on strong local demand, compared to 118 billion naira (US$750 million) it achieved last year.

Dangote Cement shares closed up almost 1 percent at 121.25 naira (US$ 0.77).

The limestone mixer said it forecasts were based on selling 2.6 metric tons of cement in the last quarter of the year and on improved gas supply. The company will spend around 110 billion naira (US$700 million) in capital expenditure this year.

“Nigeria has a low per capita consumption … so we believe there is a huge pent up demand in Nigeria … which will drive growth,” Dangote Cement executive Devakumar Edwin said on a conference call with analysts, discussing its third quarter results.

Edwin said gross revenues at the cement producer hit US$1.3 billion during the first nine months, up 19.8 percent from the same period in 2011, while pretax profit grew 13.5 percent to US$670 million in the nine months through September.

The company said cement sales rose 19.7 percent to 7.7 million tons in the nine months to September, while it produced 7.5 million tons.