Shares of construction giant, Julius Berger, surged 9.93 percent to N22.15 after the company announced it recorded N10.3 billion as profit for the full-year ended 31st December 2019 on the back of an improved public sector spending.
Shares of the company have gained 10.55 percent since the beginning of trading this year, while it gained in three days of trading. Its prices have remained largely unchanged for the rest of the trading days.
After a recession-induced loss in 2016 when the company reported a loss of N2.39bn, Julius Berger has since found the path of profitability, thanks to capital expenditure spending from the government. In 2017, the company recorded a bottomline of N2.51bn, while in 2018, it ballooned to N6.1bn.
In 2019 result, revenue increased to N264.55bn from N194.61bn. Breakdown of the revenue segments shows that civil works segment recorded N150.79bn from N110.15bn in 2018, building works segment recorded N89.94bn from N65.70bn in 2018, and facility management services recorded N23.81bn from N17.39bn in 2018.
Another high point from the result is the fact that revenue from Asia & Europe markets increased marginally to N4.55bn from N4.26bn.
Following its vision for diversification, the construction giant in August announced that it would be participating in the bidding process for the Camalaniugan (Cagayan) Bridge in a consortium with Frey-Fil Corporation in the Philippines. It also announced the acquisition of 20 percent equity share capital in Petralon 54 Limited.
There are signs the company might do far better in coming years considering Nigeria’s huge infrastructure deficit and Julius Berger’s dominance in the market with Federal Government’s plan to borrow N2trn from N10trn pension assets for infrastructural investment.
Notable road constructions currently being handled by the construction company include the Lagos end of the Lagos-Ibadan Expressway.
Julius Berger Nigeria plc is a Nigerian construction company headquartered in Abuja, with additional permanent locations in Lagos and Uyo. The company is represented across Nigeria in structural engineering and infrastructure works, and in southern Nigeria through domestic and international oil and gas industry projects.
OLUFIKAYO OWOEYE
