Julius Berger Nigeria Posts N1.9bn Loss in Six Months

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Goddy Egene

Julius Berger Nigeria Plc has reported a loss of N1.931 billion for the six month ended June 30, 2020, compared with a profit of N2.835 billion in the corresponding period of 2019.

Details of the unaudited results made available at the Nigerian Stock Exchange (NSE) showed that the construction firm recorded a revenue of N102.055 billion in 2020, down from N131.783 billion in 2019. Gross profit fell from N29.849 billion to N18.633 billion in 2020.

The firm was able to reduce administrative expenses to N15.748 billion in 2020, compared with N22.446 billion in 2019. However, a foreign exchange loss of N3.102 billion in 2020 led to loss after tax of N1.931 billion as against a profit after tax of N2.835 billion in 2019.

But the N1.931 billion loss in six months is an improvement on the N2.344 billion loss posted in the first quarter of the year. Market analysts said given the performance, it would be difficult to say if the shareholders would receive a dividend at the end of the year.

Julius Berger Nigeria recorded a profit of N8.7 billion in 2029 and recommended a dividend of N3.6 billion, which translated to 275 kobo per share but later reduced it to 200 kobo per share.

The company had explained that these trying times for corporates globally, is expected to force a rethink of spending plans by corporate boards to protect liquidity and ensure long-term sustainability, while balancing the needs for return to shareholders.