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Geregu Power Grows Revenue by 42% Amidst Economic Challenges



Geregu Power Plc

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.

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Company News

Lafarge Africa Board Proposes N30.60bn Dividend, Lower Than Previous Year



Lafarge Africa - Investors King

Lafarge Africa’s Board of Directors has recommended a dividend payout of N30.60 billion for the year ended December 2023, a reduction from the previous year’s dividend.

The proposed dividend translates to N1.90 per unit of shares and awaits approval from shareholders at the upcoming Annual General Meeting (AGM) of the company.

In a corporate announcement filed with the Nigerian Exchange Limited, Lafarge Africa disclosed that the proposed dividend is payable from the Pioneer Reserve to shareholders registered as of March 28, 2024.

Despite the lower dividend proposal, Lafarge Africa recorded an increase in revenue to N405 billion, marking an 8.6% rise from the previous year’s N373 billion.

However, the company’s post-tax profit experienced a 4.7% decline, amounting to N51.14 billion, attributed mainly to the devaluation of the naira.

Lolu Alade-Akinyemi, the Chief Executive Officer of Lafarge Africa, expressed confidence in the company’s performance despite economic challenges.

He highlighted the growth in revenue and an improved operating margin, despite pressures from inflation and currency devaluation.

Looking forward, Lafarge Africa remains optimistic about the construction sector’s growth in Nigeria, despite prevailing economic challenges.

The company aims to leverage its market opportunities while maintaining a focus on sustainability and stakeholder value.

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Merger and Acquisition

EnjoyCorp Limited Secures Strategic Acquisition of Champion Breweries Plc



Champion Breweries

EnjoyCorp Limited, a conglomerate known for its ventures in food, beverage, and hospitality, has successfully secured a strategic acquisition deal with Heineken B.V.

The agreement entails EnjoyCorp acquiring 100% of Heineken’s shareholding in The Raysun Nigeria Company Limited, which holds an 86.5% stake in Champion Breweries Plc, a prominent regional brewer listed on the Nigerian Exchange Limited (NGX).

The transaction, subject to regulatory approvals, is anticipated to conclude in the second quarter of 2024.

Heineken will extend its support to Champion Breweries for a year post-acquisition, ensuring a seamless transition of ownership.

This acquisition marks EnjoyCorp’s strategic entry into the beverage sector, aligning with its vision of catering to the diverse tastes of the African consumer market.

By integrating Champion Breweries as an anchor subsidiary, EnjoyCorp aims to strengthen its foothold in the industry.

EnjoyCorp, known for its mission to enrich life’s moments through quality brands and sustainability, sees this acquisition as a pivotal step in its journey toward transformative growth.

With a focus on innovation and community engagement, EnjoyCorp endeavors to inspire consumers to cherish life’s moments responsibly.

The acquisition underscores EnjoyCorp’s commitment to shaping the future of the beverage industry in Africa.

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Company News

Apple’s Ambitious Electric Car Effort Comes to an End, Stock Rises



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Apple Inc. has announced the termination of its decade-long effort to develop an electric car, marking the end of one of the company’s most ambitious projects.

The decision was disclosed internally on Tuesday, surprising nearly 2,000 employees involved in the project, according to sources familiar with the matter.

Chief Operating Officer Jeff Williams and Vice President Kevin Lynch, who spearheaded the effort, informed staff that the project would wind down.

Many employees from the car team, known as the Special Projects Group, will transition to Apple’s artificial intelligence division under executive John Giannandrea, focusing on generative AI projects.

The news brought a sense of relief to investors, with Apple’s stock climbing approximately 1% to $182.63 at the close of trading in New York.

Elon Musk, CEO of Tesla Inc., also celebrated the decision, signaling approval with a post on social media.

The end of the electric car project, named Project Titan, is a significant shift for Apple, which initially aimed to produce a fully autonomous electric vehicle with advanced features.

However, the endeavor faced challenges from its inception, including leadership changes and strategic shifts.

Despite investing substantial resources and talent, Apple found itself grappling with a cooling market for electric vehicles, sluggish sales growth, and manufacturing hurdles.

The company explored various designs and tested self-driving technology extensively but ultimately struggled to achieve breakthroughs in the competitive automotive industry.

Apple’s decision underscores its strategic shift towards prioritizing generative AI projects over automotive ventures.

While the end of the electric car project marks a notable chapter in Apple’s history, it signifies the company’s adaptability and focus on areas with long-term profitability potential.

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