Geregu Power Declares N20.01bn Profit for H1 2024

Kayode Tokede

Geregu Power Plc has announced N20.01 billion profit in its unaudited half year ended June 30, 2024 result and accounts, about 148.5 per cent increase from N8.05 billion declared in half year (H1) ended June 30, 2023.

Geregu Power, a power generating company emerged as the first listed company on the Nigerian Exchange Limited (NGX) to release H1 2024 unaudited result and acounts to the investing public.

The company declared N30,15 billion profit before tax, representing an increase of 145.3 per cent from N12.29 billion declared in H1 2023.

Revenue in the period stood at N80.7 billion in H1 2024, about 133 per cent from N34.7 billion reported in H1 2022.

The company had declared its unaudited first quarter (Q1) ended March 30, 2024 with about 308 per cent growth in PBT amid significant increase in revenue and effective cost management.

The power-generating company announced N21.9billion PBT in Q1 2024, representing an increase of 308 per cent from N5.37billion reported in Q1 2023.

After a N7.4 billion tax expenses, Geregu Power declared N14.46 billion profit after tax in Q1 2024, a growth of 307.56 per cent from N3.55 billion reported in Q1 2023.

Key profit drivers include:  N50.43 billion revenue in Q1 2024, a growth of 254per cent from N14.23 billion in Q1 2023 and N2.68 billion finance cost in Q1 2024, a decline of 27 per cent from N3.14 billion reported in Q1 2023.

With the significant increase in profit, Earning Per Share (EPS) rise to N5.87 per share in Q1 2024 from N1.42 per share in Q1 2023.

Following improved profits in 2023 financial year, shareholders of Geregu Power approved the payment of N8.00 per share dividend payout.

This translates into N20billion dividend in the 2023 financial year.

Speaking to shareholders at the 12th Annual General Meeting (AGM) in Lagos, Chairman, Geregu Power, Mr. Femi Otedola stated that the company remains cautiously optimistic despite the challenges faced in the previous year.

“In 2024, Geregu Power aims to align our business operations with the global trend toward affordable, clean and efficient energy systems. This involves incorporating renewable energy sources into our power generation portfolio, a move that not only aligns with our sustainability goals but also positions us to capitalise on emerging market opportunities.

“Our commitment to innovation and sustainability, along with our strategic initiatives, positions us well to navigate the challenges and seize the opportunities that lie ahead,” he said.

Geregu Power is one of Nigeria’s leading GenCos contributing to nearly 10 per cent of the nation’s total electricity generation.

Equipped with three Siemens gas-fired turbines, Geregu Power boasts an impressive total installed generating capacity exceeding 435 MW. In practice, the power plant consistently generates between 260 MW and 270 MW of electricity.

As part of its capacity expansion efforts, Geregu Power is in the process of acquiring an additional plant, Geregu Power Plant II, a 434MW gas-fired power project to boost power production in the country.