The Managing Director of Julius Berger Nigeria Plc, Dr Lars Richter, has said the company’s diversification into cashew processing and exports, amongst other options, was a strategy meant to mitigate the effects of the forex challenge to the company’s operations.

Richter said this at the company’s 2022 investor relations forum.

“In fact, we have shown by our diversification into cashew processing and exports that we (Julius Berger) can do another business besides our core construction business. Our diversification policy and initiative has contributed to the company’s revenues, even as a start-up venture,” he stated.

Richter noted that the company has the largest market share, limited competition of similar scale, and quality and financial capacity to execute several projects in the country.

According to a statement issued by the company on Thursday, the managing director said the purpose of the company’s investor relations forum was to highlight Julius Berger’s “business, operations, financial highlights and key investment considerations to investors, as a compelling investment opportunity in the construction industry.”

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He stated: “The company, today, is endowed with the largest market share, limited competition of similar scale, quality and financial capacity. We have a strong brand equity, a seasoned management, an experienced and diverse Board of Directors, and a well-defined Diversification Strategy; all projecting for a strongly-rooted and positive business outlook further strengthened by a favourable operating environment…”

Richter said Julius Berger “is synonymous with the best quality infrastructure in Nigeria, and the company is assigned a National Scale Rating of A- with a Stable Outlook assigned a National Scale rating of A.”

He noted that Julius Berger “completed 600 building projects, over 20 industrial facilities, and 130 infrastructure projects nationwide” over the company’s past 50 years presence in Nigeria’s construction industry.

The company, he added, was structured along three key segments – Civil works, Building Works, and Services and with seven subsidiaries, specialising in executing complex works that require the highest level of technical expertise and Nigeria-specific know-how.

Richter said the core competencies of Julius Berger “cover all project phases, including planning, design, engineering, construction, maintenance, and operation, for infrastructure, industry and building projects.”

Speaking on the company’s business outlook, the managing director said: “Nigeria’s construction sector is set to expand, and this will support growth in civil works, building works, and ancillary service.

“We expect the construction industry to be one of the key drivers of GDP growth in the near term and as such, outpace the GDP growth rate.”

He, however, thanked the investors and participants for attending the company’s forum, assuring  them that with the statistical positive outlook for Julius Berger’s core business, the company “is not only well prepared for the future, but Julius Berger is indeed the new real time attraction for investors in the market.”

On his part, the Financial Director, of Julius Berger Nigeria Plc, Christian Hausemann, said the company’s “…cash balances exceed total borrowings for most of the review period implying a negative net debt position.”

Hausemann added that “…sustained and improving interest coverage ratios providing adequate buffer for interest expenses.”

The Star