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Tag: Julius Berger

  • Investors net worth drop by 0.66% on NSE

    Investors net worth drop by 0.66% on NSE

    Investors net worth on the Nigerian Stock Exchange ( NSE ) on Tuesday dipped by 0.66 per cent due to price depreciation.

    The All-Share Index lost 279.92 points or 0.66 per cent to close at 42,299.56 compared to 42,579.48 achieved on Monday.

    Also, the market capitalisation closed lower at N15.179 trillion as against N15.280 trillion posted on Monday, representing a loss of N101 billion or 0.66 per cent.

    An analysis of the price movement table showed that Seplat for the second consecutive day topped the losers’ table, dropping by N13.50 to close at N657.90 per share.

    International Breweries trailed with a loss of N2.85 to close at N57, while Dangote Cement recorded a drop of N2 to close at N257 per share.

    Lafarge Africa shed N1.30 to close at N50, while Julius Berger was down by N1.10 to close at N24.85 per share.

    Conversely, Nestle led the gainers’ table, gaining N22 to close at N14 per share.

    Total followed with a gain of N15 to close at N232, while Mobil Oil recorded a gain of N3.40 to close at N183.90 per share.

    Conoil improved by N3.15 to close at N35.25, while Cement Company of Northern Nigeria appreciated by N1.35 to close at N18.20 per share.

    In spite of the drop in the market indices, the volume of shares traded closed higher with an exchange of 438.65 million shares worth N8.79 billion transacted in 5,433 deals.

    This was against the 384.26 million shares valued at N5.47 billion traded in 4,774 deals on Monday.

    Transcorp dominated trading activities emerging as the most active stock during the day, exchanging 45.09 million shares worth N93.04 million.

    Diamond Bank followed with an account of 43.35 million shares valued at N105.73 million, while FBN Holdings traded 42.35 million shares worth N490.91 million.

    Fidelity Bank exchanged 40.02 million shares valued at N119.99 million and Access Bank sold 27.39 million shares worth N355.31 million.

    NAN

  • Fed Govt, NLNG, Julius Berger sign $120m pact on Bonny Bodo road

    The Federal Government has signed N120 billion tripartite agreement with the Nigeria Liquified Natural Gas (NLNG) Limited and Julius Berger Nigeria Plc to construct Bonny Bodo road in the Niger Delta.

    The contractual agreement will ensure the project is completed and delivered in four years.

    The Federal Government, through the Federal Ministry of Power, Works and Housing made a commitment of N60 million for the project while NLNG will provide the remaining  N60 million to ensure successful completion of the project.

    Speaking at the agreement signing yesterday in Abuja, Minister of Power, Works and Housing, Babatunde Fashola described the meeting as concluding part of the procurement process for the project execution.

    He said the gesture was in compliance with the Economic Recovery Growth Plan (ERGP) of the federal government, commitment to develop the Niger Delta as well as the partnership with the private sector as major contributor to national growth.

     Fashola said: “Essentially we will formally sign the agreement today. It concluded the procurement process for starting the constructing process of the Bonny bridge.

    “This is a major statement in partnership with private sector to deliver public use.

    NLNG Managing Director, Tony Attah said the project would open the Niger Delta to new frontiers of development and secure better opportunities for the rural communities.

    “This is a 40 kilometres road that connects Bonny kingdom to Port Harcourt and open up the community to the rest of the world. If you live in Port Harcourt and  you want to visit Bonny, you can only do that through boat but now it will open it for greater opportunities,” he said.

    The Managing Director, Julius Berger Nigeria Plc, Wolfgang Goetsch, said  the project would  create jobs for the rural communities.

  • Analysts pick Forte Oil, Julius Berger for high returns

    Investors looking for high returns on investment over the next one year should include Forte Oil and Julius Berger Nigeria Plc in their portfolios, investment analysts at GTI Securities have said.

    An investment advisory report by GTI Securities stated that Nigerian equities will remain on the upswing in spite of intermittent profit-taking, with the release of second quarter earnings expected to further tickle the bulls.

    The report noted that pressure on the South African economy and the uncertainties in the United Kingdom (UK) economy as well as stable domestic foreign exchange management, will play to the advantage of the Nigerian equities market and sustain inflow of foreign portfolio investments.

    In the advisory report signed by Head of Research and Strategy, GTI Securities, Mr. Chuks Anyanwu, the securities firm indicated that Forte Oil and Julius Berger Nigeria are two of the best stocks for investors looking for high returns within a 12-month period.

    According to the report, Forte Oil has the potential to generate capital appreciation of about 207 per cent with an expected target price of N170.41 by the end of the period as against its current price of about N55.58 per share.

    The report also indicated that Julius Berger Nigeria could post a return of about 77 per cent within the period as the share price of the construction firm is expected to rise from its current level of N39.55 to close the period at about N70.

    Analysts noted that the 414 megawatts Geregu Power Plant of Forte Oil has started to contribute significantly to the group’s top-line as power generation contribution to revenue increased by 118.61 per cent year-on-year and accounted for 19.79 per cent of total revenue in first quarter of 2017 compared to 8.39 per cent of total revenue in comparable period of 2016.

    Forte Oil has 51 per cent stake in a 414 megawatts gas-fired independent power plant, which is selling power to the Nigerian power grid on a guaranteed basis.

    “This trend is expected to continue with the power generation business further boosting revenue growth, especially with the present drive by the government to ensure that power generation in the country increases. Forte Oil also has the capacity to push higher fuel and lubricants volume sales through its recent retail outlet expansion financed through its issued bonds,” GTI Securities stated.

    The report noted that Julius Berger Nigeria has a huge public sector portfolio, which includes several high-profile projects such as permanent site of the National Institute for Legislative Studies, Abuja, new residences for presiding officers of the National Assembly, Abuja; rehabilitation and extension of Airport Expressway, Abuja; rehabilitation of Badia Roads, Lagos;  Lagos–Badagry Expressway, Lagos and Lagos–Ibadan Dual Carriageway, Section 1, Lagos–Shagamu, among others.

    “We expect that with the focus of the government on infrastructure development a lot of the allotted N1.8 trillion, 30 per cent of the total budget for 2016, will go to ongoing projects across the country. This will boost Julius Berger’s revenue base and profitability for the 2016 fiscal year. In addition to the on-going projects, the company has also won new projects: Asokoro Conference Centre, Abuja; Dangote Jetty Apapa, Lagos; Uyo–Etinan Road, Akwa Ibom; Upgrade of NLNG MOF Jetty, Bonny Island; Dualisation Oil Mill Elelenwo Akpajo Road, Port Harcourt and No Potholes Programme, Port Harcourt. These in addition to the company’s other business arms will ensure sustainability in revenue base going forward,” GTI Securities stated.

    The management of Forte Oil recently said the group plans to acquire upstream assets and related downstream businesses to grow its portfolio and enhance future returns.

    Group Executive Director, Finance and Risk Management, Forte Oil Plc, Mr. Julius Omodayo-Owotuga, outlined a five-point strategic growth plan that will strengthen the indigenous energy group’s existing downstream, power generation and oil-servicing businesses and expand the group portfolio to lucrative oil-mining upstream business.

    Omodayo-Owotuga said the company will explore inorganic option of mergers and acquisitions to consolidate its growing market share in the oil and gas business, while strengthening its balance sheet to support long-term growth objective.

    “We have five pillars of strategies going forward. We want to concentrate on high-margin products. We want to focus on lubricants.  We have been working on our LPG as we improve our facility in Abuja, Kano and Apapa. We want to strengthen our balance sheet. We want long term capital so that interest expenses will come down.  Diversification is part of our strategy to boost out revenue base. We want to buy upstream assets; we will focus on mergers and acquisition within the space available. We have been growing our market share organically. We are looking at opportunity to grow the retail outlet through inorganic strategy,” Omodayo-Owotuga said.

    Already, Forte Oil has started the process to raise N20 billion in new equity funds after it successfully raised N9 billion in debt issue. Besides, it has approval to raise up to N71 billion under a N100 billion capital raising programme approved by the shareholders of the company.

    Omodayo-Owotuga said the latest capital raising will further boost working capital and operations as it will provide the company with the necessary liquidity to actualise its growth strategies.

    He pointed out that existing businesses in the group’s portfolio have shown strong performance, noting that Forte Oil maintained 14 per cent market share among the major marketers in the white products segment of the downstream sector as a result of ongoing strategic retail network expansion and growth of its commercial and lubricant customer base.

    Omodayo-Owotuga said the company plans to raise funds from its shelf programme in tranches, on the basis of emerging opportunities, in order to ensure that investors receive optimal value for their investments.

  • Abuja Airport repairs, 40% completed, work on schedule – FAAN, Contractor

    The Federal Airport Authority of Nigeria (FAAN) and Julius Berger, the contractor handling the repair of Nnamdi Azikiwe International Airport, Abuja runway, have said that the work is 40 per cent completed.

    The duo gave made this known in Abuja on Monday when members of the House of Representatives Committee on Aviation led by its Chairman, Mrs. Nkeiruka Onyejeocha, inspected the project.

    Mr. Yemi Ayelesan, Resident Engineer, FAAN, told the committee that the hardest part of the work, which is mailing of the 3.6 kilometres runway, had been completed.

    He explained that the laying of “fibre glide rubber” which prevents water from going deep underground and also prevent runway from cracking has also been completed.

    He told the committee that the contractors are working to specifications and would deliver on schedule, expressing confidence that the six weeks period for reopening of the airport was feasible.

    According to him, the contractors are working round the clock to ensure that they meet the deadline.

    Ayelesan said the repair work was a total reconstruction and not partial rehabilitation, explaining that the entire runway had been excavated for laying of asphalt.

    He said there were isolated areas that were so bad that required digging deeper beyond mailing and laying of asphalt, stating that the entire surface were mailed to a certain depth.

    According to him, there is nothing like partial rehabilitation, even the taxi way is being repaired.

    “Laying asphalt does not take time; it is the easiest part of the work.

    “The lighting system is the next step, and the cable can be fixed within two days, as things are now, we will start fixing the light cable on March 29,’’ he said.

    Dr Lai’s Richter, Project Manager, Julius Berger, said the work was being done in line with the programme of work.

    Richter said the fixing of the lighting cable would commence on Wednesday, restating that the runway repairs would be completed before April 19 deadlines.

    The Chairman of the House Committee, Onyejeocha, said their visit was to seek explanation on the level of work so far in line with the project agreement.

    She also raised concern as to whether the repair work was a total reconstruction or partial repair, urging the contractor to ensure the completion of the project as scheduled.

    “We want them to know that Nigerians are concerned and that there should be no extension of the completion date based on the agreement that we have put in place,” she said.

    The News Agency of Nigeria (NAN) reports that the contractors have recorded progress within 19 days since the commencement of work.

    The runway was shut on March 8 for six weeks for its total repair and Abuja flights diverted to Kaduna pending the completion of the repair work.

     

  • Julius Berger steps up work on Lagos-Ibadan Expressway

    Julius Berger steps up work on Lagos-Ibadan Expressway

    Julius Berger Nigeria Plc, the contractor handling Section One of the reconstruction of the Lagos/Ibadan Expressway project, has begun the installation of expansion joints on the popular “Long Bridge”.

    News Agency of Nigeria (NAN) correspondents, who took a trip on Section One yesterday, observed that work was ongoing on the Lagos bound carriageway of the Long Bridge.

    Section One spans from Ojota in Lagos to the Sagamu Interchange and handled by Julius Berger.

    Section Two, which spans the Sagamu Interchange to Ibadan, is being handled by Reynolds Construction Company (RCC).

    Workmen were working on the bridge, with other repairs going on simultaneously on various portions of the highway.

    The highway has been completed to the final layers on both carriageways between the Redeemed Christian Church of God (RCCG) Redemption Camp and the Sagamu Interchange.

    The Federal Ministry of Power, Works and Housing engineer supervising the contract, Kayode Ibrahim, told NAN that expansion joints on the Long Bridge were being fitted.

    Ibrahim explained that special construction materials were being used in the reserved spaces called “Thorma Joints,” which are where the expansion joints are being installed.

    He, however, declined comments on when the installation would be completed, insisting that Julius Berger would complete the work “very soon”.

    The engineer explained that Julius Berger was working on the road’s shoulders (edges) between Wawa and Ibafo, to move traffic to the Ibadan-bound carriageway.

    He said this was to enable total and effective reconstruction of the Lagos-bound carriageway.

  • Long Bridge safe, says Julius Berger

    Long Bridge safe, says Julius Berger

    AN engineer with the construction giant, Julius Berger, yesterday said there were no threats or pot holes on the “Long Bridge” on the Lagos-Ibadan Expressway.

    The engineer, who spoke to News Agency of Nigeria (NAN), said some “Thorma Joints” on the bridge were being misunderstood as potholes by the media.

    He gave a graphical illustration of the technical procedure mistaken for potholes.

    He explained that Thorma Joints were part of installations needed for replacement of expansion joints on the bridge.

    “This bridge is safe and would not cause discomfort to motorists.

    “What you are seeing here is not a crack or pot hole but they are slots left for installation of expansion joints,  which by our work programme,  will begin next month.

    “What we have done so far is to cut off the old expansion joints, replacing them with plates.

    “We welded the plates (Thorma Joints) to cover the spaces pending replacement of the expansion joints based on normal technical procedures.

    “They are mistaking the small slots we left for expansion joints for pot holes,” he said.

    The Section One of the Lagos-Ibadan Expressway Rehabilitation and Reconstruction Project is 40 per cent completed.

    The Project Supervisor, Kayode Ibrahim, of the Federal Ministry of Power, Works and Housing, made the confirmation yesterday.

    The section, which extends from Ojota in Lagos to the Sagamu Interchange in Ogun, was awarded to Julius Berger.

    Work is going on simultaneously on the various sections from Ojodu Berger to the Sagamu Interchange.

    Workers were removing stock piles of asphalt from some portions of the highway between Kara and Wawa.

    Ibrahim said Julius Berger did not stop work on the site in December.

    “Some people did not leave site at all; some only observed the public holiday and returned on January 3; work is progressing and is about 40 per cent completed.

    “We are digging the road deep around RCCG because the road is bad, and we have to remove all the bad materials so that we can carry out long lasting repairs.

    “We are also using 40cm stone base, 15cm macadam, then 10cm of asphalt to make the road strong. This construction is expected to last for 50 years.

    “There is no road in Nigeria that is using this standard for construction, but we have introduced this macadam base here because of the high axle load on this highway,” he said.

  • Lagos-Ibadan road: Julius Berger commended for repairs, opens road

    Lagos-Ibadan road: Julius Berger commended for repairs, opens road

    A commendation has gone out to Julius Berger for completing the rehabilitation of the  `long bridge’ on the Lagos/Ibadan Expressway, ahead of schedule.This commendation was made by the Minister of Power, Works and Housing, Mr Babatunde Fashola (SAN),

    Fashola gave the commendation while inspecting Section One of the project which spans from Lagos to the Sagamu Interchange, which is being handled by Julius Berger.

    Fashola lauded the company’s efforts in completing the repairs ahead of the initial completion date of Dec. 31 and immediately opening the road to traffic.

    He thanked road users for their understanding during the period of construction, as the diversions and partial restrictions on the construction zones had caused them some hardship.

    “I also want to thank commuters who endured stress during the repairs and want to appeal that as the bridge is open to traffic, you will see that your sacrifice was worth it;  you will have better motoring experience even as work continues,” he said.

    The Minister explained that Julius Berger could not close the road because of its importance and so, had to manage the heavy traffic, while it went on with the repairs.
    He said that the firm had to deploy about 50 trailers to and from the site daily, moving materials in and out, adding that, over 3,600 trips were made to ensure a speedy completion.

    “We had a completion timeline of Dec. 31 to finish this work but our contractor had doubled their efforts and they have now finished the first phase of the work on the long bridge.

    “The bridge has been asphalted but the work is not finished. It is a 4,500-metre bridge on both sides and they still have to install some joints.

    “About 44 on one side and 44 on the other side.

    “Their contract also extends to kilometre 46 to Sagamu; they are asphalting between kilometre 30 to 33.

    “The reason for my coming is to thank the contractor because they said they are going to open this place to traffic today.

    “This is well ahead of the Dec. 31 date and they did this, being sensitive to the heavy movement that takes place on this road during Christmas,” he said.

    He thanked the governments of Lagos and Ogun for their support in repair and providing logistics to ease congestion on the highway during the construction.

    The Minister also thanked the Federal Road Safety Corps, the Police and other law enforcement and traffic management agencies, as well as ministry officials for their efforts which both eased gridlock and improved security.

    He, however, appealed to road users to avoid reckless driving, to stem accidents throughout the yuletide season.

    The minister said that the rainy season slowed down the project but urged road users to expect more repairs with the improvement in weather on both section one of the projects being handled by Julius Berger and section two, which spans from the Sagamu Interchange to Ibadan, being handled by the Reynolds Construction Company.

    He also disclosed that more repairs would go on across all roads in the country.

    Earlier, the Julius Berger Project Manager, Mr Wolfgang Panzer, while presenting a brief on the project, explained that asphalt layers were increased on some portions, to ensure stability and durability.

  • BIPC to retain equity in Julius Berger

    Benue State Investment and Property Company (BIPC) has purchased 27 million units of Julius Berger shares as part of moves to retain its equity.

    Its Managing Director and Chief Executive Officer, Mr.Jack Mulya disclosed this during an interview with The Nation  in Makurdi, Benue State capital.

    Mr. Mulya said the investment company lost its shares in Julius Berger due to high level of irregularities perpetrated by the previous government thereby robbing the state of the opportunity to invest its shares in the construction giant.

    He said on his assumption of office, he obtained permission from Governor Samuel Ortom to commence the process of returning the company to its shares at Julius Berger and the approval was granted.

    He said one of the conditions the company is expected to meet for reconsideration is to build its investment with Julius Berger up to five per cent of the total equity for which 27 million units has so far been paid with 9.4 million left as balance.

    Mr. Mulya promised that the company would continue to buy the units as the financial resources of government improved till it was completed to achieve the strategic seat.

    On the Dangote shares, he pointed out that the company had concluded arrangements to domicile management of its potfolio,equities and debt instruments to be more effective in terms of capital appreciation.

    He added that management had disengaged ELIXEL, BIPC’s potfolio and equity management company due to its abysmal performance after reconciling with its officials who had also agreed to compensate them for the loss they incurred as a result of the development.

  • Ogun, Julius Berger and Lagos/Ibadan Expressway

    By all accounts, the Ogun State government’s directive to Julius Berger Plc not to work on Lagos-Ibadan Expressway during the rush hours is a welcome development.

    According to the Secretary to the State Government, Barr Taiwo Adeoluwa, “The objective of this directive is to mitigate the man-hour losses as well as socio-economic disruptions occasioned by the ongoing reconstruction work.”

    That Lagos-Ibadan Expressway has been a source of agony to thousands of commuters on a daily basis is a well-known fact. The highway is a huge drain on the economy of Nigeria, especially residents of Ogun State, as the most productive hours of the day are lost on the road due to traffic gridlock.

    Therefore, it is not surprising that Nigerians have commended the Ogun State government for ordering the construction company to work on the road between 10am and 4pm and from 10pm to 6am. Nigerians, who will benefit from the reconstruction, should not die due to stress on the road before the work is completed!

    The practice in developed climes is for such work to be undertaken in the night and during such hours that would impose the most minimal inconveniences on commuters.

    I travelled to Lagos recently. Between the Redemption Camp at Mowe and Berger in Lagos, I spent five hours. Initially, I thought there was an accident or an articulated vehicle had broken down. But to my chagrin, I discovered that it was the road contractor that had blocked the long bridge before Berger leaving only one lane for thousands of vehicles on the road.

    To make matters worse, the construction company was not on the highway on that day and no work was actually going on the largely blocked bridge.

    We seem to have this notorious backward mentality in this country, which is that the people must suffer unnecessarily for services they should enjoy. You go to a public or private institution, and you are told, remorselessly, to “come back tomorrow”, most often, for services that could be delivered there and then, forgetting that that “come back tomorrow” will cost money, time and energy and the productive hours that should otherwise be contributed to the Gross Domestic Product (GDP). There are countless instances where hundreds of applicants will arrive by 7am for job interview as demanded by a (recruiting) company only to be told by 7pm to “come back tomorrow!”

    Time is money. Indeed, time is life. And I dare say that the good news emanating from Ogun State in recent years is a product of the value the state government has placed on time. No economy develops by wasting time. Economic development is a function of time management. No investor or business man wants his or her time wasted. To underscore the importance placed on time, at the recently concluded Investors’ Forum, Ogun State governor, Senator Ibikunle Amosun, declared: “We have expanded the Bureau of Urban and Physical Planning into a full-fledged Ministry and have adopted reforms that fast track the process for obtaining development permits from six weeks to two and land clearance permits to one week… To make it easier for investors to take full advantage of the vast opportunities in Ogun State, we are further expanding the services offered by the One-Stop-Shop that was launched in 2012. The One-Stop-Shop will enable potential and existing investors to go to only one office in order to process Urban and Physical Planning permits; to access the Bureau of Lands to conduct transactions such as land title searches, to purchase land and obtain certificates of occupancy/Governor’s consent; to access the Internal Revenue Service; to acquire land for agriculture; and finally to access the Legal Advisory Desk – all under one roof.”

    This obviously is the mindset of a government consumed with passion for economic development.

    From day one in office, Amosun has been concerned about the state of Lagos-Ibadan road. It’s a federal road but it impacts more on the economy of the state. This is what has led to the state government’s constant intervention on the highway in repairs, maintenance of security and traffic sanity. The media are suffused with stories of Amosun alighting from his car to personally direct traffic or bring a chaotic situation under control.

    Adeoluwa was therefore on spot when he opined that, “The public will recall that we confronted these challenges headlong. We set up a taskforce to checkmate the excesses of the trailer drivers so much so that the governor personally led regular enforcement teams on the expressway. We also invested heavily on redesigning the security architecture of the state by deploying Armoured Personnel Carriers, elite Quick Response Squad, QRS; Operation MESA and the state Traffic Enforcement and Compliance Agency, TRACE, etc. We have also repeatedly intervened by undertaking major repair works on bad stretches of the road, not minding the fact that it is a Federal government highway.

    “Additionally, we took responsibility for clearing traffic, maintaining security and cleaning after the departure of our monthly religious visitors. These efforts ultimately restored relative sanity on the road and greatly reduced robbery incidents. But that was until this recent intervention by Julius Berger. The objective of this directive is therefore to mitigate the man-hour losses as well as socio-economic disruptions occasioned by the ongoing reconstruction work.”

    We hope the construction company will take maximum advantage of night time when the highway is virtually free of vehicles and work at the speed of light to meet the expectations of President Muhammadu Buhari, who has made the reconstruction of the economically-strategic highway a priority.

     

    • Soyombo writes from Abeokuta via densityshow@yahoo.com
  • Traffic gridlock: Ogun directs Julius Berger to work at night

    Traffic gridlock: Ogun directs Julius Berger to work at night

    The Ogun State government has expressed deep concern about the hardship being faced by Nigerians who regularly commute on the ever-busy Lagos-Ibadan expressway on account of the ongoing reconstruction work being undertaken by Julius Berger Plc.

    It has accordingly directed that with effect from Monday, August 8, 2016, the contractor shall not work on the Lagos Ibadan expressway during the peak traffic hours, namely from 6am to 10am and between 4pm and 10pm. We encourage the contractor to work full blast between 10am and 4pm and also during the night after 10pm.

    This measure has become necessary because we observed that the already bad traffic situation on the expressway has been further compounded by the increasing spate of armed robberies reported along the road.

    The Ogun State government welcomes the ongoing reconstruction works in the full realization of the fact that this will ultimately bring greater relief to our people. We however note that the effort has come with temporary pain, in the nature of perennial traffic congestion and security challenges.

    In the past few weeks, we took two steps. We increased police and security patrols on that axis and opened up discussions with the Federal Controller of Works, Ogun State and the contractor. We suggested that they should consider working late evenings and overnight in order to ameliorate the disruption to the lives of commuters on the ever-busy expressway and Ogun residents. It is a thing of regret that our suggestion was spurned.

    The state government made this request based on experience. We recall that before the advent of the Senator Ibikunle Amosun administration, armed robberies occasioned by bad portions of the road; traffic congestion caused by unruly drivers driving against the flow of traffic and tanker drivers parking indiscriminately on the median, were the order of the day.