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Julius Berger, a leading construction company, recorded a 5 percent increase in revenue to N125.7 billion in 2017 from N119.8 billion, the previous year, amid increased engineering and construction activities in Nigeria.
In the same vein, profit before income tax was recorded from a loss of (N1.2bn) in 2016 to N1.2 billion in the year under review. Dividend of subscription of rights to buy additional securities in the company may be made available to the company’s existing shareholders in the coming months, as they are also expected to pay dividend to shareholders.
According to a statement released Tuesday, Wolfgang Goetsch, managing director, Julius Berger Nigeria (JBN), celebrating the ability of the company to operationally achieve seemingly impossible project delivery schedules, pointed at the critical emergency rehabilitation of the runway and main taxiways at the Nnamdi Azikiwe International Airport, Abuja, which was accomplished against all odds in only six weeks.
The same feat, he pointed out, was recorded at the Azura-Edo Independent Power Plant – a 450mw open cycle gas power plant in Edo State and Nigeria’s first Independent Power Plant.
From ongoing projects such as the Dangote Jetty in Apapa Lagos, the Port Harcourt town roads rehabilitation, the central area of Abuja, including the B6/B12 Boulevard road system, to other projects across Nigeria, the technical capability to deliver on client’s requirements remains bold and definitive of the company’s strength.
For the Abuja-Kaduna-Kano Road project, according to the managing director, the firm had introduced an innovative methodology, whereby the milled pavement was recycled and improved for reuse, via a precisely metered process to produce a homogenous mix of bitumen-stabilised material used for paving the base layer of the road.
By introducing this new highly efficient and state-of-the-art methodology to Nigeria and implementing it for the rehabilitation of the Abuja-Kaduna-Zaria-Kano Road, shorter construction times are achieved, resources are conserved, cost efficiencies are realised, environmental impact is reduced, road safety is improved, roads lifespan is extended, and the roads’ capacity to bear heavy traffic is increased, Goetsch said, saying, “It is by all means a winning solution.”
While he looks forward to strengthening the JB Group to offer clients a full range of construction-related services under one roof, the company, he said remained optimistic regarding future developments in Nigeria.
According to Goetsch, “We are hopeful that the Federal Government’s strong focus on reform to ease the complexities of doing business will continue to find success, in order to further stimulate development opportunities.”
While Goetsch looks forward to strengthening the Julius Berger Group to offer clients a full range of construction-related services under one roof, the Company, he says, “We are hopeful that the Federal Government’s strong focus on reform to ease the complexities of doing business will continue to find success, in order to further stimulate development opportunities.”
Looking specifically at the construction industry, Goetsch said the sector still faces substantial challenges. Although the currency market, which was the primary driver of volatility in the past has stabilised, a desire by clients to more intently shift risk has led to more time-intense and intricate contract negotiations requiring more rigorous evaluation.
Goetsch, however, is hopeful that “…as the National Economic Recovery and Growth Plan has now been in place, we continue to eagerly anticipate sustainable growth, and we look forward to the tangible positive outcomes for the construction industry, and therefore for our company.”
Speaking in the same positive context at the event, the financial director of the Company, Martin Brack also said “today we are cautiously optimistic as we look to a brighter future. Supported by our strong positioning and project backlog as well as some major positive economic indicators, inflation rates are stabilizing, thus allowing the company to work in a more stable economic environment again.”
While acknowledging that there is still work to be done, he said the country’s economic data has pointed up healthily. He noted that “GDP is on the rise, inflation is lower, and the price per barrel of crude oil is above the 45-dollar budgetary benchmark and the Central Bank of Nigeria’s external reserves are recovering.” These factors amongst others, he said, “have led the IMF to elevate its 2018 Nigeria growth forecast, to 2.1%, in line with the World Bank’s projection of 2.5%.”
