Geregu Power, Nigeria’s leading electricity generation company, has announced a 42% increase in revenue during the first nine months of 2023 despite challenging economic conditions that have beset the nation.
According to the company’s 9-month interim financial report, Geregu Power’s revenue rose to N55.7 billion, a significant leap from the N39 billion recorded in the same period last year.
The company also reported a pre-tax profit of N17.4 billion, representing a 25.3% growth when compared to the previous year’s N13.9 billion. Profit after tax for the period stood at N11.3 billion, up from N10 billion in the same period in 2022.
It is important to note that Geregu Power has already surpassed its entire 2022 profits in just the first three quarters of 2023.
The revenue generated from energy sales in this quarter skyrocketed from N3.2 billion in the same period last year to N13.1 billion, contributing to the overall energy sales figure of N34.7 billion while capacity charges increased to N7.9 billion, a substantial growth from N1.9 billion filed for the same period last year.
Despite the challenging business environment marked by rising inflation and the depreciation of the Nigerian naira, Geregu Power successfully managed to achieve this impressive performance.
Administrative expenses, including personnel costs and maintenance expenses, rose significantly, largely attributed to the effects of inflation and exchange rate depreciation.
In terms of debt management, the company successfully reduced its external debt and has a strategic 7-year bond worth N41.19 billion to support its acquisition of another power plant, demonstrating a forward-looking approach to expanding its operations in the energy sector.
Geregu Power’s strong cash flows remain a testament to its financial stability and commitment to delivering value to shareholders, highlighted by dividends of N20 billion sourced from 2022 profits.
The company’s substantial cash reserve of N49.3 billion further underscores its financial strength and its ability to pursue strategic investments.
As of Wednesday, October 18th, 2023, Geregu Power’s share price closed at N339.5 per share, further solidifying its impressive financial performance in the energy sector.
