As part of efforts to diversify its operations into the oil and gas sector, based on recent reports, Julius Berger Nigeria PLC which has suffered dwindling fortunes in recent times, enters into a strategic partnership and joint investment agreement with Petrolan Energy Limited, an upstream Nigerian energy company, established to acquire, develop, operate and finance hydrocarbon assets in the Nigerian Oil and Gas Sector.
In a notification to the Nigerian Stock Exchange (NSE), JBN (Julius Berger Nigeria PLC.) said the partnership is for the acquisition and development of oil fields in Nigeria. According to the company, the alliance is in line with its strategic goal to diversify into oil and gas sector.
Mr. Sunmonu, the current chairman of Julius Berger Nigeria (JBN), who recently affirmed in the annual general meeting in Abuja, while addressing shareholders, attributed the poor outing of the company to the persistent and increased severity of the economic hardships, specifically the large premium paid for the acquisition of foreign exchange at exorbitant rates, which resulted in the unbearable losses that absorbed the operating profit completely. And coupled with the federal and state government’s continual inability to honour contractual obligations on the majority of their projects, had drastic negative effect on the company liquidity and profitability.
He, however assured the shareholders that the board and management were more focused on ensuring the survival of the company in this harsh economic and operational environment.
Sunmonu also noted that JBN would continue to implement its long-term strategy of diversification with regards to business segments and client mix.
“The company will continue to strengthen its presence in the power sector by enhancing its position as an engineering, procurement and construction contractor of choice. Opportunities in other new business areas will continue to be identified and explored diligently, with negotiation already proceeding on a number of promising projects, and debt recovery measures, including extraordinary actions already initiated with the federal government, will continue to be pursued to find amicable solution,’’ he said.