Japaul Gold and Ventures’ nine-month pre-tax profit rises 202% to N1.50 billion

Japaul Gold and Ventures Plc recorded a profit before tax of N1.50 billion for the nine months ended September 2026, representing an increase of 202.3% from N496.22 million in the corresponding period of 2025.

In the third quarter, pre-tax profit rose to N704.94 million from N75.95 million a year earlier.

The company’s unaudited financial statements, approved by its board on 28 October 2026, show that revenue growth and higher other income supported the improvement in profitability.

However, operating cash flow turned negative during the nine-month period, while capital expenditure and investment activities accounted for substantial cash outflows.

Key Highlights

• Revenue: N4.22 billion (Up 59.08% YoY from N2.66 billion).
• Gross profit: N2.30 billion (Up 38.85% YoY from N1.66 billion).
• Operating profit: N1.51 billion (Up 202.73% YoY from 499.45 million).
• Pre-tax profit: N1.50 billion (Up 202.30% YoY from N496.22 million).
• Profit after tax: N1.50 billion (Up 202.30% YoY from N496.22 million). The statement records no income tax expense for either period.

Driving the numbers

Japaul Gold and Ventures’ revenue increased to N4.22 billion in the first nine months of 2026 from N2.66 billion a year earlier. The company’s business-unit breakdown identifies dredging as the dominant revenue contributor.

Japaul Dredging generated N4.19 billion, accounting for approximately 99.1% of reported nine-month revenue. Japaul Offshore contributed N1.10 million, while Japaul Quarry generated N38.29 million. The concentration of revenue in dredging means that the group’s reported performance was overwhelmingly driven by this business unit during the period.

Gross profit increased by 38.85% to N2.30 billion, slower than the 59.08% growth in revenue.

• Cost of sales rose to N1.92 billion from N996.40 million, indicating that a larger share of revenue was absorbed by direct operating costs.
• Consequently, the gross profit margin declined to approximately 54.5% from 62.5% in the corresponding period of 2025.
• Despite this margin pressure, operating profit rose to N1.51 billion from N499.45 million. Other income increased to N445.26 million from N63.16 million, contributing to the improvement in reported earnings. Administrative costs also increased slightly, reaching N1.24 billion from N1.22 billion.
• Net finance costs rose to N11.82 million from N3.23 million. Although the increase was substantial in percentage terms, finance costs remained relatively small compared with the company’s reported operating profit.

Profit before tax consequently increased to N1.50 billion, while profit after tax was equal to pre-tax profit because no income tax expense was recorded.

The cash flow statement, however, presents a less favourable picture of cash generation. Net cash used in operating activities amounted to N612.63 million, compared with positive operating cash flow of N737.37 million in the corresponding period of 2025. Cash receipts from customers were N2.00 billion, while payments to suppliers and employees totalled N2.40 billion.

• Investing activities used N6.92 billion during the period. The statement records N2.41 billion spent on mining-related capital work in progress, N538.95 million on property, plant and equipment, and N5.00 billion placed in a call account. These outflows were partly offset by proceeds from asset disposals.

Financing activities generated net cash of N7.23 billion, supported by N7.51 billion in private-placement proceeds and N495.00 million in term-loan proceeds, alongside loan repayments and interest payments. Despite these financing inflows, cash and cash equivalents declined to N142.68 million at the end of September 2026 from N446.61 million at the beginning of the year.

Balance Sheet

On the balance sheet, current borrowings stood at N2.73 billion as of September 2026, compared with N2.23 billion in December 2025. Current lease liabilities remained at N1.00 billion, while the non-current lease facility stood at N3.57 billion.

• Total assets was N38.88 billion, calculated from reported non-current assets of N25.51 billion and current assets of N13.37 billion. The corresponding December 2025 figures totalled N38.05 billion.

Cash balance fell to N142.68 million at September 2026, Down from N427.44 million at December 2025.

Market reaction

Japaul Gold share price closed at N2.53 on October 28, 2026.

This represents about 1.2% year-to-date increase from N2.50 at the start of the year.