Otedola’s Geregu Reports 50.5% Decline in Profit to N10.2 Billion in 2022

Geregu Power Plc reported a profit of N10.2 billion for the financial year ended 31st December 2022.

According to the financial statement seen by Investors King, this amount shows a decline in profit by 50.5% compared to the N20.6 billion recorded in the year 2021.

Revenue also declined in value to N47.6 billion in 2022 from N71 billion in filed in the corresponding year of 2021, this represents a 33% decline for the year. This is as Energy sold and capacity charge declined to N30 billion and N17 billion from N46 billion and N25 billion, respectively.

According to the company, the decline is owing to the nationwide force majeure declared by Shell Petroleum Development Company Limited on the Trans-Forcados pipeline and its consequent effects on the Forcados oil terminal, gas supplies to the plant by Its primary gas supplier ceased from 17th of July 2022.

However, it stated that maintenance works on the pipelines were completed at the end of November 2022 and gas supplies and normal operations have since then resumed.

Also, the cost of sale declined to record N24 billion in 2022 from the N38 billion in 2021. This is as gas supply and transportation as well as plant depreciation value dipped to N22 billion and N2 billion from N33 billion and N4 billion respectively.

Operating profit was N14.8 billion in 2022 from N29.5 billion while the net finance cost was N348 million from negative N11 million in the previous year.

Profit before tax also dip to N15 billion from N29 billion the year before.

Geregu was admitted into the Mainboard of the Nigerian Exchange Limited (NGX) in the last quarter last year by way of listing by Introduction (LBI) with the admittance of 2.5 billion ordinary shares of 50 kobo each at N100 per share on the Exchange, making it the first Genco to be listed on the NGX Main Board, a listing segment for well-established companies with demonstrable records of accomplishments.

Meanwhile, as at the close of market on Thursday, 2nd February, its share price closed at N219.