Wapco

[Catweasel]

Thanks for the confirmation Hispy, I thought I had perhaps soiled my bedsheet.

At the current price WAPCO is very attractive and becoming more so every day.

I also believe that their 4th quarter result will start to see a positive impact of their leverage in terms of importing finished product.

Thus far my warm and fuzzy feelings are not being reflected in the market though. If WAPCO drops again today by less than 5% I will be getting my cheque book out tomorrow and average down my existing holding, which has endured somewhat of a blood-letting.

[billions]

Originally Posted by hispy99

We must be using the same brand of bedsheet; we have the same PE

So u still get bedsheet!!!

The bears came to me 4 dream...they slept on my stock bedsheet and after dey woke up,they tore d bedsheet and told me to learn from what dey have done in all d markets around d world.

Pls i need a Joseph dat can interprete this dream for me.

[migiets]

Originally Posted by billions

So u still get bedsheet!!!

The bears came to me 4 dream...they slept on my stock bedsheet and after dey woke up,they tore d bedsheet and told me to learn from what dey have done in all d markets around d world.

Pls i need a Joseph dat can interprete this dream for me.

A Joseph has just arrived to interpret your dreams. The interpretation is that the number of bears in your dream is the number of years it will take the market to recover.

[ayemco]

Originally Posted by migiets

A Joseph has just arrived to interpret your dreams. The interpretation is that the number of bears in your dream is the number of years it will take the market to recover.

Migiets, Haaa this your interpretation bad oooooo. You wan kill Billions!!!! $ years to recover. Billions I hope you reject this prediction for your own good. I no fit laugh...

[billions]

Originally Posted by migiets

A Joseph has just arrived to interpret your dreams. The interpretation is that the number of bears in your dream is the number of years it will take the market to recover.

I reject d interpretaion.

I will go back and sleep...i must have another dream.

[ayemco]

Originally Posted by billions

I reject d interpretaion.

I will go back and sleep...i must have another dream.

I beg this time wey you dream, make you dream for not only Bull but Bullion van!!! Make the Bullion van dem no pass 1 otherwise na im be say the money no go come untill after 1 year.

[hispy99]

Lafarge WAPCO turnover hit N29.3bn in September
By Rasheed Bisiriyu
Published: Wednesday, 5 Nov 2008

Cement manufacturing giant, Lafarge/West African Cement Company Plc, has recorded a turnover of N29.3bn for September 2008, indicating a nine per cent increase over N31.9bn recorded in the corresponding period of 2007.

The Managing Director/Chief Executive Officer, Mr. George Lourandos, also said that there was no going back on the plans by the company to take a 100 per cent loan to execute its expansion project.

The company is to spend about 360 euros on the expansion project, which will be completed by 2010.

According to the details of the firm’s financial results, presented on Monday by its General Manager, Finance, Mr. Emmanuel Oloruntoki, an operating profit of N8.67bn, was recorded in September 2008.

The figure, he explained, showed a marginal profit of 0.4 per cent over N8.64bn recorded in the same month last year.

He gave the profit after tax as N9.02bn, a 2.8 per cent increase over N8.78bn in September 2007.

Lourandos said, “Like many other companies, we experienced a rough terrain as a result of the energy crisis in the country, but we have proactively risen to this challenge by exploring other sources of power.

“We know that the future of our company is quite promising and with continued support from all stakeholders, we will continue to improve upon our performance in the years ahead.”

He also said, notwithstanding the global financial crisis, the company was still pressing ahead with the plan to obtain loan for the entire expansion project.

The project is expected to increase the firm’s annual cement production in the country to 2.2 million metric tonnes.

According to him, “Steady progress is being recorded on Lafarge WAPCO’s ongoing expansion project. By the end of 2010, a new 2.2 million metric tonnes line, which will increase the aggregate Lafarge WAPCO capacity to 4.2 million metric tonnes, will be installed.”

[billions]

Originally Posted by Catweasel

Thanks for the confirmation Hispy, I thought I had perhaps soiled my bedsheet.

At the current price WAPCO is very attractive and becoming more so every day.

I also believe that their 4th quarter result will start to see a positive impact of their leverage in terms of importing finished product.

Thus far my warm and fuzzy feelings are not being reflected in the market though. If WAPCO drops again today by less than 5% I will be getting my cheque book out tomorrow and average down my existing holding, which has endured somewhat of a blood-letting.

Catweasel,Wapco gained today.I know u r d majority shareholder...you control more dan 50% of d outstanding shares.

[Catweasel]

They don't call me Catweasel Lafarge for nothing!!


In fact they don't call me Catweasel Lafarge .... 50% .... I wish!!!

I wouldn't still be sitting in the office, I would be on the splendid Golf Course at Ewekoro.

Nice to see positive movement all the same.

[citizen]

Lafarge WAPCO Enhances Fundamentals
By Emele Onu, Finance Editor

Third quarter earnings per share (eps) of N2.64 on a share price of about N26, which Lafarge WAPCO Nigeria is trading at present is not a bad one.

For the nine months to September 2008, the company reported a turnover of N31.9 billion against N29.3 billion in the comparable period of the previous year, which represents 9 percent positive variance.

Profit after tax rose from N7.7 billion to N7.9 billion. However, operating profit margin dropped by 7.9 percent from 29.5 percent the previous nine months to 27.2 percent in September 2008. Net income margin also declined, shedding 5.7 percent to 28.3 percent from 30 percent. The drop of the efficiency ratios was due to increased cost, one of them being energy.

Nevertheless, analysts agree to the enhanced fundamentals of the company, citing the strength of its strategic expansion and continuous build up in efficiency.

Lafarge WAPCO's Managing Director and Chief Executive, Mr. George Lourandos said recently that Steady progress is being recorded on the organisation's ongoing expansion projects.

"By the end of 2010, a new 2.2 million metric tones line, which will increase the aggregate Lafarge WAPCO capacity to 4.2 million metric tones, will be installed" said Lourandos.

Lafarge WAPCO currently has a capacity of 2 million metric tones through its two plants at Ewekoro and Shagamu.

Analysts see the expansion as a big boost to the business, describing it as one that will enhance returns to shareholders considering the fact that the cement industry has a huge supply gap.

Lafarge WAPCO had some months ago announced the commencement of negotiations for $560 million (about N60 billion) credit facility to finance expansion.

Mr. Lourandos said the organization is currently exploring other sources of power for both the existing and new Ewekoro lines, a project that is geared towards reducing the negative impact of epileptic power and gas supply on the business.

It is expected that at the end of the power project, the company will be in a better position to cushion cost and by that expand the bottomline.

Inspired by its foreign technical partner and majority shareholder, the Lafarge Group, Lafarge WAPCO Nigeria launched the New Dawn project in February 2005 with the terminal date of 2008. That has been a major boost to the business.

Conceived at a time the company's performance was in deficit, the authors of New Dawn outlined the programme to reposition the plant for great value to all stakeholders. The cement company promised to maximize volume, reduce cost and widen margin. That was with the intent to build a consistent upward performance culture that would guarantee lasting and superior returns on investment. As the programme gradually comes to a close, the management can be said to have achieved targets and fast meeting stakeholder expectations.

Management's positive responses to the challenges facing the company have gingered the turnaround. Roughly three years ago, the management made a promise to turnaround the then ailing plant. The problem then was how to deal with the devastating impact of debt on the financials. WAPCO had borrowed heavily to finance expansion to the extent that the interest debacle exposed the bottom line to consistent deficits and losses.

The business incurred a net loss of N1.4 billion in 2002, N3.2 billion in 2003 and N3.4 billion in 2004 before the management commenced the turnaround. Support from local shareholders and the majority investor, Lafarge SA was instrumental to the level of financial success recorded. Through proceeds form rights issue, which was largely taken up by shareholders, the management cleared significant amount of the outstanding debt that impaired the bottomline.

The phased restructuring of the company's debt which was finalized under the New Dawn project in 2005 has resulted in tremendous cost reduction, which in turn has enhanced the profitability of the plant.

Lafarge WAPCO's debt portfolio as at the close of business in 2006 was N10.5 billion. The management hopes to retire the remaining indebtedness by the end of the running year.

Lafarge WAPCO was incorporated in 1959 and listed on the Nigerian Stock Exchange in 1979.

[Catweasel]

@Citizen

Thanks, as Billions knows, I have a soft spot for WAPCO and will now continue my holding-pattern with re-newed confidence.

[knightofdelta]

In late February Wapco hit the N62 mark and reversed until it got to N68, making a N6 gain within a week.

In first week of May, the stock hit the N52 mark and reversed until it got to N60, making an N8 gain within two weeks.

The downward trend continued...

In late August, the stock hit the N34 mark and reversed until it got to N42, making an N8 gain within a week.

Technical analysis says the next bottom will be at N17 - N19 and then show another upward trend between N5 - N8 within a week. Anyone wants to try it with me? If it gets to N18, I will buy some to test the theory and maybe make some quick bucks for Christmas/New Year.

I have attached the chart, which was adapted from NigerianSecurities.

Caveat Emptor: Please use only disposable funds for this experiment

[BLUEMONEY]

Originally Posted by knightofdelta

In late February Wapco hit the N62 mark and reversed until it got to N68, making a N6 gain within a week.

In first week of May, the stock hit the N52 mark and reversed until it got to N60, making an N8 gain within two weeks.

The downward trend continued...

In late August, the stock hit the N34 mark and reversed until it got to N42, making an N8 gain within a week.

Technical analysis says the next bottom will be at N17 - N19 and then show another upward trend between N5 - N8 within a week. Anyone wants to try it with me? If it gets to N18, I will buy some to test the theory and maybe make some quick bucks for Christmas/New Year.

I have attached the chart, which was adapted from NigerianSecurities.

Caveat Emptor: Please use only disposable funds for this experiment

My Broker was not able to get the Exact Quantity I Needed this week but hopefully next week he will get it but with this your chart it looks like this stock would hit N10 by first quater 2009 if this trend persist. it doesnt look like N17 is the last bottom.

Though I am investing for the Long Term.

[hispy99]

How Lafarge WAPCO plots to achieve 4.2 million mt output
Wednesday, 31 December 2008 00:02 SIMON NJOKU


By the end of 2010, a new 2.2 million metric tons line will have been added to Lafarge Cement WAPCO Plc’s current capacity of 2.0 metric tons. This will bring the company’s aggregate capacity to 4.2 million metric tonnes.

The 2.2 million metric tons line is part of its ongoing expansion project and it is expected to cost about $225 million. Funding is to be sourced locally. Certainly, keen followers of events in the cement industry may wonder how the cement manufacturer, which is yet to liquidate loans for its turnaround project, would be able to accomplish such an ambitious plan. Not to worry, by now, the balance of the loan will have been offset. Going by assurances by the company’s general manager, finance, Emmanuel Osuntoki, the syndicated loan must have come to an end since November this year.

Funding

With that concluded, the company has now entered a new era of project finance arrangement to propel its expansion plan. To successfully undertake the new line that will increase capacity by more than two million tons, chairman, board of directors of the company, Bayo Akinola, at the recent AGM, sought and obtained the approval of shareholders for the directors to raise, at a price to be determined by the board of directors, additional funds up to N75 billion.

This is to be realised through the raising of debt and /or issuance of equity “not exceeding the number of un-issued shares in the company’s authorised share capital”.

Importantly, the company’s expansion plan is more or less in response to shareholders’ demand. Two years ago, during its AGM, not a few shareholders expressed concern about the future of the company against the back drop of expansion projects being embarked upon by its competitors.

Some of those projects, when fully completed, will ensure such competitors command over 10 million metric tonnes capacity. Shareholders therefore mandated the company management to come out with an appropriate response. The planned 2.2 million metric tonnes additional capacity could be seen as the first phase of the management’s response strategy.

Plant upgrading

What is not immediately certain is whether the new capacity will come from one or both of its production facilities at Ewekoro and Shagamu.

Expressing strong optimism, hinged on statistical data, that the demand for cement would continue to rise, Akinola had informed shareholders at the AGM that, in order to benefit from the forecast increase in demand, the company had been able to restore the capacity utilisation of its older plant at Sagamu to approximately 95 per cent by the end of 2007 from less than 70 per cent in 2004.

“The refurbishment of the Shagamu Plant entered its final phase in 2008 and l am delighted to announce to our shareholders that the investment has been worthwhile,” he said.

Energy

But expectations are that by the time Chinese Construction Company, the firm handling the expansion project, delivers the job in 2010, the company would have found solution to its energy supply problem in order to ensure steady production.

The deterioration in energy supply negatively affected the production of cement from the company’s two plants at Ewekoro and Shagamu in 2007. The plants were adversely affected by the shortage of electric power, and the disruptions in the supply of natural gas, both of which are key inputs in the production of cement.

As a result, the company witnessed 82 days of lost production which when converted to cement production amounted to 360,000 metric tons of cement or N2 billion in lost profit contribution.

Company managing director, George Lourandos, assures on this. “Like many other companies, we experienced a rough terrain as a result of the energy crisis in the country but we have proactively risen to this challenge by exploring other sources of power.”

The power challenge also affected the company’s performance no less in the first nine months of 2008.

Financials

The financial results as at September 30th 2008, made available to journalists recently by Oloruntoki, showed that WAPCO achieved a turnover of N31.9 billion in 2008 compared with N29.3bn in the corresponding period of 2007.

Operating profit rose by 0.4 per cent to N8.675 bn from N8.643 in the preceding year. It recorded a financial income of N352 million as against N140 million in the period under review. The company’s profit before tax increased by 2.8 per cent to N9.027 bn from N8.783 bn while profit after taxation stood at N7.924bn as against N7.729bn in the previous year.

Unlike in 2007 when net income was flat, management is however optimistic that despite the current operating profit margin of N27.2 million as against N29.5 million as well as the net income margin of N28.3 million compared with N30 million in the period under review, the current year might still end better than 2007.

In other words, financing the expansion project with internally generated revenue or profit is therefore not considered the best option. Hence the manufacturer is considering public offer, rights issue or bank loan. Public offer appears to be the company’s best option because even at prevailing market price of its stock, many investors, especially existing shareholders, are ready to snap up whatever number of shares is offered for subscription.

Employment

Apart from shareholders and other stakeholders who stand to reap bountiful dividend from the company’s new production line, many job seekers will not be left out. According to Lourandos, many jobs are likely to be created.

“As an organisation, we also remain committed to improving on the quality and quantity of the workforce of this country. We recently concluded recruitments for our annual graduate trainee scheme with the employment of 31 graduates from all over the country.”

In addition, the construction company, CCC, is sure to engage civil, electrical, building and construction engineers as well as other kinds of skilled and unskilled labour, including suppliers etc in the execution of the project.
Future

“We know that the future of our company is quite promising and with continued support from all stakeholders we will continue to improve upon its performance in the years ahead,” says Lourandos.