Lafarge Cement WAPCO Nigeria Plc (WAPCO), the country’s second-biggest producer of the building material by market value, rose to the highest in more than four years on speculation it will sustain first-half profit growth.
The stock gained 1.8 percent to 57 naira by the close in Lagos, Nigeria’s commercial capital, the highest since May 2008.
Lafarge’s net income for the half-year through June surged to 8.8 billion naira ($56 million) from 3.2 billion naira a year earlier, the Lagos-based company, a unit of Lafarge SA (LG), the world’s biggest cement maker, said on Jul. 31. Revenue jumped 47 percent to 43.3 billion naira.
The stock is rising on its “excellent” half-year result,” David Adonri, Chief Executive Officer of Lambeth Trust and Investment Co. Limited said by phone. “The likelihood of the fundamentals, especially the profit after tax, being sustained is very high,” he said. Results for the third quarter are expected to be released from the second week of October, he said.
Lafarge WAPCO took 45 billion naira in loans to expand its plant at Ewekoro in southwestern Nigeria. The new production facility is now contributing to income, Adonri said.
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