Geregu Power Plc has reported a profit before tax of N13.01 billion for the first quarter ended March 31, 2025.
This represents a 40.57 percent decline when compared to the N21.9 billion recorded in the same period of 2024.
According to its unaudited financial statements published on Friday, the company’s revenue dropped by 37.02 percent year-on-year to N31.7 billion, down from N50.4 billion in Q1 2024.
The decline in topline figures was primarily due to reduced energy sales and capacity payments, with energy sales contributing N20.8 billion and capacity charges accounting for N10.8 billion in the reporting period.
Despite the revenue contraction, the company made progress in managing costs, reducing its cost of sales by 10.27 percent to N19.7 billion from N22.01 billion in the previous year.
However, gross profit fell by 57.75 percent to N12 billion from N28.4 billion recorded in Q1 2024.
Operating profit stood at N14.6 billion, representing a 32.62 percent decline year-on-year. The company also recorded a significant reduction in its foreign exchange losses.
‘Other loss,’ which was largely impacted by unrealized foreign exchange losses in previous periods, dropped to N7.6 million in Q1 2025 from N529.4 million in Q1 2024.
On the balance sheet, total assets grew by 8.02 percent year-on-year to N262.9 billion, up from N243.4 billion reported in Q1 2024.
However, retained earnings dropped by 21.07 percent to N40.5 billion, reflecting the impact of lower profitability on accumulated earnings.
Despite the dip in quarterly performance, the company remains a standout performer on the Nigerian Exchange.
As of April 12, 2025, Geregu Power shares traded at N1,141.50, sustaining its reputation as one of the best-performing stocks in the power sector. In 2024, the company posted a year-to-date return of 188.22 percent.
Geregu’s performance in the first quarter highlights the ongoing challenges in Nigeria’s power sector, including market liquidity constraints, gas supply issues, and capacity payments.
Nevertheless, the company continues to maintain a strong asset base and profitability, positioning it for long-term operational resilience.
Investors and analysts will closely monitor the company’s performance in subsequent quarters as it adapts to evolving market dynamics and seeks to sustain shareholder value amidst sector-wide headwinds.
