Nigeria: Ashaka trebles profit in 1H14

Nigeria: Ashaka trebles profit in 1H14

Nigerian Lafarge subsidiary Ashaka Cement has reported a 1H14 profit after tax of NGN3.51bn (US$21.5m), a 201 per cent increase than its 1H13 figure of NGN1.15bn. Pretax profits at the company surged 166 per cent YoY from NGN1.65bn to NGN4.39bn in 1H14.

The stellar rise in profit figures has been attributed partly to Ashaka's switch to coal from the Maiganga Coal Mine in Gombe State, a significantly cheaper alternative in its power generation. This resulted in a reduction of production costs.

Ashaka has also secured a NGN50bn credit facility to fund its aggressive expansion across the country. NGN100bn is also earmarked for capacity upgrades and the construction of coal-fired captive power plants – projects which are expected to be completed in two years' time.