Leading Nigerian construction firm, Julius Berger Nigeria Plc, has no plans to float any right issues in the meantime. The company is letting its shareholders and the investing public know of its resolve.
The Financial Director of Julius Berger, Martin Brack, who represented its Managing Director, Engr. Dr. Lars Richter, stated this during the company’s recent investor forum 2019, in Lagos.
The reason for this resolve: Brack explained that the decision came as a result of the increment of the company’s shareholders’ equity to N35 billion.
“In 2018, Julius Berger successfully overcame many of the tough challenges faced in the recent past and made marked progress across all aspects of its business, moving to greater profitability and success. We don’t think it is necessary to float a rights issue at this moment as our shareholders’ equity has risen by N35 billion.”
Brack also said that the 2018 business year was a good one with great progress and accomplishments.
The Lagos-Shagamu Expressway: He also commented on the construction of the Lagos-Shagamu Expressway, stating that the project had experienced delays in the past as a result of the unavailability of funds. However, now that it is financed by the Presidential Infrastructure Development Fund (PIDF), the company will be able to fast-track the completion of the construction process.
Understanding Shareholders’ equity: Shareholders equity is the difference between total assets and total liabilities. It is the amount that shows how the company has been financed with the help of common shares and preferred shares.
It represents the amount of money that would be returned to shareholders if all of the assets were liquidated and all of the company’s debts paid off. It is also called Share Capital, Stockholder’s Equity, or Net worth.
An Overview of the company: 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.
The company has been listed on the Nigerian Stock Exchange since 1991. Before this, its parent company was Bilfinger Berger.
With 18,000 employees from close to 40 nations and clients from both Nigeria and the global oil and gas industry, Julius Berger is a leading construction company and one of the largest private employers in Nigeria.