Tanga Cement posts 16bn/- profit

Tanga Cement posts 16bn/- profit
Published: 12 February 2007

Tanzania’s Tanga Cement Company (Simba) has posted 15.99bn/- net profit for its operations for the year ended December 2006, up from 7.233bn/- recorded in the preceding year.

"The firm’s net profits more than doubled last year, because less was spend on operational costs," said Dave King, Chairman of Tanga Cement Board of Directors.

He said the year ended December 2006, was challenging but successful for the company because revenue increased by 10 per cent, while earnings per share rose by 121 per cent compared with 2005.

Mr King said increased fuel prices continued to have impact on transportation and operational costs, resulting in higher cement prices.

He, however, said the decision to switch to coal powered kilns from fuel, helped cut operational costs of the firm significantly.

The chairman said in view of the successful operations last year, the board had proposed a final dividend of 135/- per share, which brings total dividend for the year to 188/- an increased of 230 per cent compared to 2005.

Mr King expressed concern over continued delay in privatisation of the Tanzania Railways Corporation (TRC), saying due to lack of services it had lost the Lake Victoria region market to competitors from neighbouring Kenya and Uganda.

"The unreliable rail distribution is impacting on sales volumes in the Lake Region, where cement imports from Kenya and Uganda have replaced our product," he said.