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Julius Berger reports N960 million profit for Q3 2022

Julius Berger reports N960 million profit for Q3 2022

Julius Berger Nigeria Plc has released its unaudited financial statement of comprehensive income for Q3 ended September 30th, 2022, which shows a profit of N960 million, an 18% dip from the amount in Q3 last year.  

The Q3 result is on the back of an inflationary year, where businesses and their consumers have had to deal with the rising cost of goods and services as well as continuously depreciating currency. 

A further dive into the result shows that the company realized profit, despite the company slowing down on revenue for the period from N108 billion in Q3 last year to N92 billion in Q3 this year. The company’s revenue comes from three core business segments, which offer construction, civil engineering, building, and facility management services to third parties across Nigeria.  Notably, this year, it operationally commenced cashew processing as disclosed in the report under diversification. 

Despite increasing inflation for the period, the company reported a dip in the cost of sales to N76 billion, compared to the N93 billion reported in the previous year’s Q3, while the gross profit stood at N15.6 billion, from N14.6 billion during the period. Meanwhile, the financial report did not detail the reason for incurring the lower costs of sales. 

Marketing and administrative expenses declined to N41milllion and N10.1 billion respectively during the period from N69.5 million and N10.6 billion in Q3 last year. 

Forex challenges

The company, however, saw a foreign exchange acquisition loss to the tune of N2.7 billion. Compared to last year when it saw a record N2.3 billion foreign exchange gains/losses typically arise from cross-border transactions that are denominated in foreign currencies as they include the import and export of goods and services, acquisition and disposal of assets as well as intercompany loans. 

Nairametrics reported that the exchange rate between the naira and the US dollar fell big at the black market on Friday, 28th October 2022, following the announcement of the CBN to design new naira notes for higher denominations during the week.  

Currency traders have expressed fear that the exchange rate between the naira and dollar on the black market may hit N1000/$1 by the end of the year. 

Earnings per share for the period were valued at N0.10 as against that of the same period last year, valued at N0.28. Julius Berger’s share price last traded at N25.9 as of Monday, 31st November 2022 while its market cap stood at N44 billion.

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DMO Issues Two FGN Savings Bonds At N1,000/unit

The Debt Management Office (DMO) has announced its Dec. issuance of two Federal Government of Nigeria (FGN) Savings Bonds at N1,000 per unit.

According to a statement by the DMO, the first offer is a two-year FGN Savings Bond due on Dec. 14, 2022, at an interest rate of 12.255 percent per annum.

The second one is a three-year FGN Savings Bond due on Dec. 14, 2025, at a 13.255 percent interest rate per annum.

It said that the opening date for the issuance of the bonds is Dec.5, the closing date is Dec. 9, the settlement date, is Dec. 14 while coupon payment dates are March 14, June 14, Sept. 14, and Dec. 14.

“They are issued at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

“Interest is payable quarterly, while bullet repayment is made on the maturity date, ” it said.

It added that FGN savings bonds qualify as securities in which trustees can invest under the Trustee Investment Act.

“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other Investors.

“They are listed on the Nigerian Stock Exchange and qualify as liquid assets for liquidity ratio calculation for banks,” it said.

The statement said they were backed by the full faith and credit of the Federal Government of Nigeria, and charged upon the general assets of the country.

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DMO Says It has Raised N130bn From Sukuk For Key Road Projects

The Debt Management Office (DMO) says it raised N130 billion from its N100 billion sovereign al ’Ijarah sukuk opened on November 21, 2022.

DMO, in a statement on Monday disclosed that the offer of N100 billion was “upsized to N130 billion due to the over 165 percent subscription level”.

The Sukuk is a strategic initiative that supports infrastructure development, promotes financial inclusion and deepens the domestic securities market.

Since the establishment of the initiative in September 2017, Nigeria has issued four sovereign sukuk: 2017 (N100 billion), 2018 (N100 billion), 2020 (N162.557 billion), and 2021 (N250 billion).

According to the statement, this year’s total sovereign sukuk issuance moved to N742.557 billion.

“The Debt Management Office (DMO) is pleased to inform the public of the successful conclusion of the issuance of N100 billion sovereign al ’ijarah sukuk. The offer for N100 billion opened on November 21, 2022, and was supported by wide public sensitisation to encourage subscription from diverse investors, particularly the retail investors,” the statement reads.

“The initial offer size of N100 billion was upsized to N130 billion due to the over 165 percent subscription level. The Sukuk was issued at a rental rate of 15.64 percent per annum. This brings the total sovereign sukuk issuance to N742.557 billion as at date.”

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CBN Limits Withdrawal To N100,000 Weekly

The Central Bank of Nigeria (CBN) on Tuesday slashed the cash withdrawal by an individual to N100,000 per week by an individual.

The apex bank also fixed N500,000 as the amount a company can withdraw in a week.

By this new policy, account holders can only withdraw a maximum of N100,000 weekly through Automated Teller Machine (ATM), subject to a maximum of N20,000 daily withdrawal.

Under the new policy, which is to take effect from January 9, 2023, the maximum cash withdrawal via Point of Sale (POS) shall also be N20,000 daily.

This was contained in a circular issued by the CBN on Tuesday, signed by director of banking supervision, Haruna Mustafa and addressed to deposit money banks and other financial institutions.

According to the circular, deposit money banks and other financial institutions are also mandated to ensure that over-the-counter cash withdrawals by individuals and corporate entities do not exceed N100,000 and N500,000, respectively, per week.

It further indicated that all cash withdrawals in excess of the stated limits will attract processing fees of 5 per cent and 10 per cent respectively.

The new policy also states that third party cheques in excess of N50,000 shall not be eligible for over the counter payment, while extant limits of N10,000,000 on clearing cheques subsist.

“Only denomination of N200 and below shall be loaded into the ATMs.

“In compelling circumstances not exceeding once a month, where cash withdrawals above the prescribed limits is required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000 and N10,000,000 for individuals and corporate organisations respectively, and shall be subject to the references processing fees in (1) above, in addition to enhanced due diligence and further information requirements,” the circular stated.

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