Julius Berger Plc records drop in profit after tax

Related stories

Natasha vs Akpabio: Court Orders Senate President To Recall Senator Natasha

Warns Natasha Against inappropriate Conduct By Abiola Olawale The Federal...

Hadi Sirika Denies Defection to ADC Coalition Rumors, Reaffirms Loyalty to Buhari, APC

By Abiola Olawale Former Minister of Aviation, Hadi Sirika, has...

China Snubs U.S. Crude for Third Month, Even as Ethane Trade Restarts

China has avoided buying U.S. crude oil for three...

Super Eagles Icon Peter Rufai Passes Away at 61

By Abiola Olawale The Nigerian football community has been thrown...

Dakuku Peterside’s Beneath the Surface Book Out in October

By Abiola Olawale Masobe Books, a renowned publisher has announced...

Julius Berger Plc, has recorded a 70.4 per cent drop in profit after tax, posting a N2.440 billion profit for the year ended December 31, 2015, compared to N8.239 billion recorded in previous reporting year 2014.
The total revenue of the group also declined to N133.807 billion, compared to N196.808 billion recorded in 2014.

In the same reporting year, the company also announced the mass retrenchment of ‘’approximately 33, 000 workers’’ only on public projects, consequently leading to ‘’indirect retrenchment of approximately 130,000 people’’ in 2015.

These were contained in the company’s Annual Report 2015 and Financial Statement presented to the shareholders at its Annual General Meeting (AGM) held in Abuja yesterday. The Chairman of Julius Berger Plc, AVM Mohammed Nurudeen, was however attributed the low performance of the company to the persistent economic challenges that enveloped the nation in the reporting year: low crude oil prices, higher interest rates, devaluation of the naira and stringent fiscal policies.

“More specifically, in the public sector, lower crude oil prices had a detrimental effect on the ability of government, at all tiers, to meet its contractual obligations and fund capital expenditures,” Nurudeen stated.
“In the private sector, the macro-economic slowdown and foreign exchange scarcity also triggered a downward review of capital expenditures.’’

To alleviate the effect of the economic downturn and mitigate potential adverse consequences on the group, the chairman revealed that strategic reduction of overheads and adjustment of performance planning and resources were carried, which included what he described as “the very unfortunate and painful requirement’’ to retrench a significant number of its well-trained and capable staff.
He added: “Due to the lingering unfavourable economic climate thus far detailed, the entire construction industry remains in crisis mode until today.

“Moreover, the additional issue of foreign exchange scarcity and depreciation of the naira have further exaggerated difficulties. The sourcing of foreign currency at a bearable rate of exchange has become of paramount importance.’’
The chairman said that such tough realities negatively affected the group’s projected planning target in 2015, resulting in a ‘’considerable decline’’ compared with the previous reporting year.

Nurudeen assured the shareholders that the company would continue to work steadily to ensure that it carry on value for its clients and shareholders.
Expectedly, faced with the poor outing, the company said it could not maintain the same dividends level as in 2014, proposing a dividend of N1.50 per ordinary share in the reporting year — resulting in a total gross dividend pay-out of N1.98 billion.

Hamilton Nwosa
Hamilton Nwosa
Hamilton Nwosa is an experienced, and committed communication, business, administrative, data and research specialist . His deep knowledge of the intersection between communication, business, data, and journalism are quite profound. His passion for professional excellence remains the guiding principle of his work, and in the course of his career spanning sectors such as administration, tourism, business management, communication and journalism, Hamilton has won key awards. He is a delightful writer, researcher and data analyst. He loves team-work, problem-solving, organizational management, communication strategy, and enjoys travelling. He can be reached at: hamilton_68@yahoo.com

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
Natasha vs Akpabio: Court Orders Senate President To Recall Senator NatashaHadi Sirika Denies Defection to ADC Coalition Rumors, Reaffirms Loyalty to Buhari, APCChina Snubs U.S. Crude for Third Month, Even as Ethane Trade RestartsSuper Eagles Icon Peter Rufai Passes Away at 61Dakuku Peterside’s Beneath the Surface Book Out in OctoberOil Prices Dip on Confirmation of Inventory BuildBuhari In Stable Condition - Ex-Aide ConfirmsBREAKING: Ex-President Buhari sick, hospitalised abroad2027: Abure, Usman Clash Over Peter Obi’s Rising Profile in ADC CoalitionMTN’s Dabengwa Tier III Cloud Data Centre: A New Era for West African Tech and AIGanduje: Why are they resigning?OPEC Reports a Global Oil Production Decline in 2024IMF Warns FG to Overhaul 2025 Budget to Prevent Economic Meltdown2027: Peter Obi Vows, Says ADC Coalition 'll prioritize Nigerians’ WelfareTragedy! Liverpool Star Diogo Jota Dies in Car Crash in Spain
X whatsapp