Julius Bergers’ earnings rise to N12bn in first half

The earnings of Julius Berger Nigeria Plc, a construction company, rose by 72 percent in the first half of 2024, a BusinessDay analysis shows.

The firm’s latest financial statement shows that its after-tax profit grew to N11.6 billion in the first six months from N6.75 billion in the same period of 2023.

Further analysis reveals that other gains surged to N19.08 billion from N3.07 billion and investment income grew to N9.22 billion from N1.43 billion.

However, finance costs dipped to N1.89 billion from N2.72 billion.

The Federal Government recently committed N20 billion monthly to Julius Berger for the completion of the dualisation of an 82-kilometer section, totaling 164 kilometers, of the Abuja-Kaduna-Zaria-Kano Highway, with a target completion timeline of 14 months.

This update was disclosed in a statement on the official website of the Ministry of Works, following a meeting between David Umahi, Minister of Works, and representatives from Julius Berger.

The discussion focused on delays in several road projects awarded to the contractor nationwide, which have been attributed to various challenges.

The Federal Ministry of Works met with the company representatives on all the inherited and new projects handled by the company to appraise their performance and took decisions on funding and completion of all such awarded projects.

The meeting chaired by the minister, Senator David Umahi, is in line with the Renewed Hope Agenda of the administration of President Bola Ahmed Tinubu.

Speaking on the resolutions reached during the meeting with the management of Julius Berger, Umahi reiterated the firmness of the ministry on issues of price control, commitment of contractors to project execution, value for money, and uniform pricing location by location.

He decried the unacceptable conditions of some of the inherited and new projects of all ongoing federal roads awarded to Julius Berger, which are within the economic corridor of the nation and which were being delayed due to issues of price differentials or lack of effective funding.

The minister listed the projects affected to include: the 82km by 2 dualisation of section of Abuja-Kaduna- Zaria- Kano Highway currently handled by Julius Berger; phase 2 of Lagos-Ibadan Expressway, whose pavement elements had been changed from asphalt to concrete; section 2A bypass at the 2nd Niger Bridge whose pavement element was changed to concrete; the Bodo-Bonny Road funded by NLNG Tax Credit; the under deck structural works at 3rd Mainland bridge, Iddo bridge and Carter Bridge.

Umahi urged the contractor to be open to a mutually agreed modality for milestone execution and funding of the projects at reviewed rates as may be agreed upon and approved by the Federal Executive Council.

Julius Berger is a Nigerian construction company, headquartered in Abuja with additional permanent locations in Lagos and Uyo. It is a Nigerian company offering holistic services covering the planning, design, engineering, construction, operation, and maintenance of buildings, infrastructure, and industry projects in Nigeria.