Billionaire Femi Otedola owned Power Generating Company, Geregu Power Plc profit after tax dipped by 11.44% in the nine months ended September 2022 to N10.029 billion, down from N11.33 billion filed in the same period of 2021.
Also, revenue declined by 28.17% from N54.301 billion realised in the corresponding period of 2021 to N39.003 billion.
The company disclosed this in its unaudited financial statement released on Friday and obtained by Investors King.
Gross profit stood at N18.95 billion, representing a decline of 27.38% from N26.09 billion achieved in the same period of 2021.
Other income grew by 401.9% to N11.44 billion from N2.28 billion in 2021. However, the company managed to reduce administrative expenses by 73.3% to N2.93 billion in the period under review from N10.98 billion recorded in 2021.
Therefore, operating profit inched higher to N16.03 billion, a 6.05% from N15.114 billion posted in the same period of 2021.
Net finance income dropped from N2.125 billion in 2021 to -N2.071 billion in 2022, largely due to the surge in finance cost to N4.226 billion from N535.277 million recorded in the nine months ended September 30, 2021.
Geregu’s profit before tax moderated to N13.957 billion from N17.239 billion, a decline of 19.04%.
The company paid income tax of N3.928 billion in the period under review to take its total profit after tax to N10.02 billion.
A critical look into the company’s three-month period ended September 30, 2022, showed Geregu grew profit after tax by 379% to N1.146 billion when compared to N239.040 million in the third quarter (Q3) 2021.
The company received a tax credit of N350.314 million in Q3 2022, hence why profit jumped from N795.523 million declared as profit before tax for the quarter to N1.146 billion.
Two weeks ago, the company became the first power generating company to be listed on the Nigerian stock exchange market. Geregu listed 2.5 billion shares at N100 a unit to add N250 billion to the Nigerian Exchange Limited (NGX) liquidity.
Geregu shares declined by 9.02% on Friday following the release of the financial statement. This puts the company’s market capitalisation at N264.790 billion.