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Business News

Julius Berger offered 20% stake in oil firm

Petralon Energy Limited (PEL) has announced its decision to offer 20% of its equity share capital in Petralon 54 Limited to Julius Berger Nigeria Plc.

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Julius Berger tells investors there're no plans for a rights issue at the moment

Petralon Energy Limited (PEL) has announced its decision to offer for subscription, 20% of its equity share capital in Petralon 54 Limited, its wholly-owned subsidiary to Julius Berger Investments Limited (JBIL), a wholly-owned subsidiary of Julius Berger Nigeria Plc.

This decision, however, is subject to regulations, consents and approvals.

This was disclosed in a notification sent by the Julius Berger to the Nigeria Stock Exchange through its company Secretary, C. E Madueke.

[READ MORE: Julius Berger announces close period ahead of Q3 2019 results]

The Details: Julius Berger Investments Limited said its Board of Directors agreed to the acquisition even though the process would require necessary engagements with stakeholders in the Oil and Gas Sector and receipt of regulatory approvals and consent.

It also added that the investment had been approved by the Ministry of Petroleum Resources but deliberations with key stakeholders were still on going.

The subsidiary also noted that it had sufficient share capital to make the investment operational as the development is in line with Julius Berger’s plans to diversify into the Oil and Gas Sector.

What you should know: PEL’s decision to offer Julius Berger 20% of its share capital in its subsidiary can be linked to a strategic partnership between the energy company and the construction giant far back in 2017. In 2017, Julius Berger aligned with Petralon Energy in a joint investment agreement to acquire and develop oil fields in Nigeria.

The alliance was to help Julius Berger diversify into the Oil and Gas Sector and diversify its revenue streams.

Julius Berger

What this means: This means that Julius Berger is looking to also invest in the Oil and Gas Sector. This is coming after the discovery of oil and Gas deposits in the North after eight months of drilling the Kolmani River region at the border community between Bauchi and Gombe States.

About Petralon Energy Limited 

Petralon Energy Limited is a Nigerian upstream energy company, established to acquire, develop, operate and finance hydrocarbon assets in the Nigerian oil and gas sector. The firm is concerned with sourcing oil and gas prospects in other African countries with rapidly evolving oil and gas sectors, such as Ghana, Kenya, Namibia, Uganda and Angola.

The company’s strategy is to build an upstream energy company with a focus on the mature, marginal and non-conventional sector of the Nigerian oil & gas industry, with immediate creation of increasing value. Partners include Eurafric, Tako E&P Solutions Limited, Xodus West Africa.

[READ ALSO: Camalaniugan Bridge: Julius Berger to partner Frey-Fil Corporation]

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About Julius Berger Nigeria Plc  

The company 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.

About Julius Berger Investments Limited

The company is one of the subsidiaries of Julius Berger Group. It serves as the planning and support activities of the Strategic Business Development.

Reincarnated as a lover of stocks, Angel investors, seed funds, and anything aligned to tech or startups raising money, Joseph's work at Nairametrics involves following the money to wherever it leads. Before joining Nairametrics, he won an investigative journalism fellowship with ICIR, appeared in several national dallies, with hard-hitting opinions, features and investigative pieces. He has also engaged in content marketing and copywriting for a top e-commerce firm in Nigeria.

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    Economy & Politics

    FG places high profile Nigerians under security watch for terrorism financing

    The FG has said that it is currently profiling a large number of high profile Nigerians who have been alleged to have reasonable links to terrorism financing.

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    FG to establish a new anti-corruption agency, P&ID, FG, malami, $9bn fine is a scam - Federal Government , UPDATED: P&ID operations shut down, assets forfeited by court order

    The Federal Government has said that it is currently profiling a large number of high profile Nigerians who have been alleged to have reasonable links to terrorism financing.

    This follows the arrest of an undisclosed number of suspects recently after the convictions of some Nigerians on terrorism financing in the United Arab Emirates (UAE).

    This disclosure was made by the Attorney General of the Federation and Minister of Justice, Abubakar Malami, during a chat with the press at the Presidential Villa, Abuja on Friday.

    What the Attorney General of the Federation is saying

    The Minister said that the convictions of Nigerians in the UAE has given rise to wider and far-reaching investigations in Nigeria.

    Malami in his statement said, “As you will actually know, sometimes back, there were certain convictions of Nigerians allegedly involved in terrorism financing in the United Arab Emirates (UAE).

    That gave rise to a wider and far-reaching investigation in Nigeria and I’m happy to report that arising from the wider coverage investigation that has been conducted in Nigeria, a number of people, both institutional and otherwise, were found to be culpable, I mean reasonable grounds for suspicion of terrorism financing have been established, or perhaps has been proven to be in existence in respect of the transactions of certain high-profile individuals and businessmen across the country.

    I’m happy to report that investigation has been ongoing for long and it has reached an advanced stage. Arriving from the investigation, there exists, certainly, reasonable grounds for suspicion that a lot of Nigerians, high-profile, institutional and otherwise, are involved in terrorism financing and they are being profiled for prosecution.

    In essence, it is indeed true that the government is prosecuting and it’s indeed initiating processes of prosecuting those high-profile individuals that are found to be financing terrorism. It is indeed true.

    Hotflex

    However, Malami did not give the number of such suspects as he maintained that investigation was still ongoing until a conclusion is arrived at.

    “As to the number, the investigation is ongoing and it has to be conclusive before one can arrive at a certain number, but one thing I can tell you is it is a large number and they are being profiled for prosecution.

    It is indeed a large number and I’m not in a position to give you the precise number as at now because the profiling and investigation are ongoing.”

    Malami warned that government will not hesitate to invoke the full wrath of the law on anyone found culpable in sponsoring terrorism in the country as nobody found culpable in terrorism financing will be spared.

    What you should know

    It can be recalled that in March 2021, the Association of Bureau De Change Operators of Nigeria (ABCON) confirmed the arrest of some of its members by security operatives over the investigation of some of their transactions which border on money laundering, terrorism financing and Know Your Customer status.

    ABCON in its statement said that it considers these as serious allegations especially given the security challenges facing the country. It appealed to the authorities to expedite action to ensure that innocent people who have been caught up in this investigation can be released and so that they can return to their anxious families and resume their lives.

    Jaiz bank
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    Macro-Economic News

    Nigeria’s VAT collection surges to N496.4 billion in Q1 2021

    Nigeria’s VAT collection surged by 52.93% (year-on-year) to stand at N496.4 billion in Q1 2021.

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    VAT

    Nigeria generated a sum of N496.39 billion revenue from Value Added Tax (VAT) in the first quarter of 2021, a surge of 52.93% year-on-year compared to N324.58 billion recorded in the corresponding period of 2020.

    This is contained in the sectoral distribution of value added tax report, recently released by the National Bureau of Statistics (NBS).

    According to the report, VAT collections in the period represents a 52.93% increase as against N324.58 billion recorded in Q1 2020; and a 9.17% increase compared to N454.7 billion recorded in the previous quarter.

    The increase in VAT collections could be attributed to increased economic activity in the country, compared to the previous year, where most economic activities were put on hold as a result of the covid-19 pandemic.

    Highlights

    • Highlights of the report showed that the manufacturing sector generated the highest amount of VAT with N49.41 billion generated, closely followed by Professional Services, having generated N42.50 billion, and State Ministries & Parastatals, which generated N26.96 billion.
    • Mining generated the least, closely followed by Pioneering, Textile & Garment Industry with N48.36 million, N77.01 million, and N289.41 million generated respectively.
    • Also, out of the total amount generated in Q1 2021, N224.85 billion was generated as Non-Import VAT locally while N171.66 billion was generated as Non-Import VAT for foreign.
    • The balance of N99.88 billion was generated as NCS-Import VAT.

    Manufacturing sector topples professional services

    The manufacturing sector toppled the professional services sector to lead the list of sectors with the highest VAT remittances in the first quarter of 2021. A total of N49.41 billion was collected as Value Added Tax from the manufacturing sector.

    • Professional services followed closely, having remitted N42.5 billion in VAT to the government, State ministries and parastatals stood in third position with N26.96 billion VAT.
    • Others on the list include; Commercial and trading sector with N22.8 billion, oil-producing (N15.8 billion), Transportation and haulage services (N14.9 billion), Breweries, bottling, and beverages (N11.9 billion).
    • Federal ministries and parastatals (N8.8 billion), banks and financial institutions (N3.3 billion), and oil-marketing (N3 billion).

    Why this matters

    • The increase in VAT collection is a development in the right direction, especially given the recent positive growth recorded in global crude oil prices, indicating an increase in government revenue.
    • However, the government needs to intensify its effort in creating innovative ways of increasing revenue given growing overheads and statutory spending, coupled with increasing debt profile.

    Continue Reading

      





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