Julius Berger Nigeria Plc

Julius Berger eyes 45% growth in revenue

Julius Berger Nigeria Plc, the country’s largest construction company by market value, forecast a 45 per cent jump in 2018 revenue as the economy recovers from a 2016 contraction and the foreign-exchange market stabilises.

The construction giant, which derives two-thirds of its earnings from government contracts, expects revenue to grow to N210 billion, spurred by contracts in the past year valued at N500 billion ($1.4 billion), Managing Director Wolfgang Goetsch said in a May 24 interview at the company’s office in Abuja.

“From 2014 to 2017 we had a decline in revenue,” Goetsch said. Combined with the weakening of the naira, the company registered a fall in earnings of almost 70 per cent in dollar terms, he added. “With five months already into the year, our forecast is we will have very significant growth, of about 45 per cent,” this year.

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Julius Berger, which has operated in Africa’s most-populous country since 1965, saw earnings slide as Nigeria suffered its worst economic contraction in 25 years in 2016 as a slump in the price of oil, its main export, caused foreign-currency shortages.




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