TANZANIA Portland Cement Company (TPCC) profit has gone up by three per cent to 56.2bn/- despite depreciation of the shilling that had an impact on fuel, spares and quarry services.
TPPC, trading on the Dar es Salaam Stock
Exchange (DSE) as Twiga cement, said the profit in 2015 was realised,
thanks to stable cement demand that is estimated to grow in the country
at about seven per cent.
According to the statement,
profitability was also attributed to the cement firm capacity increase
last year thus pushing up sales volume by 22 per cent.
“TPCC is well placed to meet this
growing demand after investing in expansion of its capacity, together
with rehabilitation of the old clinker line,” the statement said.
The cement demand in the country and in
the East Africa bloc has been growing steadily over the last years,
prompting Twiga cement to invest on expansion. The impact of shilling
depreciation that sunk by 23 per cent, according to Twiga cement, was
offset through efficient variable cost management and fixed cost
reduction.
Twiga announced a dividend of 306/- a
share, which represents an increase of 14.6 per cent compared to 267/-
per stock of 2014. The proposed dividend includes two interim of 95/-
and 111/- per share paid last October and this February respectively.
Despite increasing dividend amount the
firm stock since January trades under bearish mode. The share price
dropped 14.9 per cent to 2,700/- to yesterday. Last year the company
targeted to produce 1.5 million tonnes up from 1.4 million tonnes
produced in 2014.
The increased capacity follows last year’s commissioning of a new 700,000 tonne- production line.
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