Julius Berger Nigeria Plc (JBERGER), the country’s largest construction company by market value, gained by the limit after posting a 74 percent increase in full-year profit and declaring a dividend.
Profit for the year through December increased to 4.87 billion naira ($31 million), while revenue fell to 169.41 billion naira from 173.7 billion naira, according to a statement Renaissance Capital received from the Nigerian Stock Exchange today. Company results in Nigeria are usually distributed by the bourse to brokerages before they are posted on its website. A spokesman for Julius Berger wasn’t immediately available for comment.
Julius Berger will pay a dividend of 2.40 naira per share on June 22, according to the statement.
The stock gained 1.45 naira, or the daily limit of 5 percent, to 30.45 naira by the close in Lagos.
“It makes sense for investors to queue to take positions on the stock in order to take advantage of the dividend,” Oluwatosin Ojo, a Lagos-based analyst at Vetiva Capital Management, said by phone today. “The dividend yield of 9 percent is quite high and rare at this point in the market.”
Julius Berger, whose largest shareholder is Germany’s Bilfinger Berger AG (GBF), forecast a 46 percent increase in first- quarter profit on Dec. 19.
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