Julius Berger Nigeria Plc has ruled out any immediate plans to float a rights issue, citing the company’s solid financial position with shareholders’ equity rising to N35 billion. Speaking at the company’s 2019 investor forum in Lagos, the Managing Director, Engr. Dr. Lars Richter, represented by Finance Director Martin Brack, highlighted the significant growth and achievements made by the company over the past year.
Dr. Richter noted that 2018 was a pivotal year for Julius Berger, with revenue increasing by 37% to N194 billion, up from N141 billion in 2017. Profit before tax soared by 173%, reaching N10.1 billion in 2018, compared to N3.7 billion the previous year. Profit after tax also experienced a substantial rise, growing by 144% to N6.1 billion from N2.5 billion in 2017.
In the first quarter of 2019, Julius Berger continued to demonstrate progress, posting revenue of ₦35.32 billion, a 3% increase from the ₦34.15 billion reported in the same period in 2017. Profit before tax was ₦2.21 billion, a remarkable turnaround from a ₦17.1 million loss in the first quarter of 2017. Profit after tax stood at ₦1.49 billion compared to a ₦426.9 million loss in the same period.
Dr. Richter emphasized Julius Berger’s commitment to timely project delivery, showcasing the company’s impressive work at the Second Niger Bridge, as well as other infrastructure projects like the Abuja-Kaduna-Zaria-Kano Road and the Lagos-Shagamu Expressway. He also noted the progress in power sector projects such as the Azura and Okpai power plants.
Richter reiterated the company’s dedication to innovation and quality, noting the introduction of the Cold Recycling Methodology in road construction as a breakthrough in efficient and sustainable infrastructure development.
Looking ahead, Julius Berger remains focused on growing its core construction business and further developing its subsidiaries to increase market share and revenue. The company’s robust order backlog and its commitment to maintaining high standards of quality, reliability, and innovation were also highlighted as key strengths driving its continued success in the Nigerian market.
