GEREGU posts N39b revenue, N13 billion profit in nine months

Geregu Power Plc(GPP), the first and only power-generating company to list on the Nigerian Exchange Limited (NGX), has posted
a revenue of N39 billion in its nine months of operations, against N54 billion achieved in the corresponding period of 2021.

The company’s nine monthly financial performances for the period ended September 30, 2022, showed revenue of N39 billion, compared to N54 billion recorded in the corresponding period of 2021.

According to the company, the decline was due to the nationwide force majeure (FM) declared by Shell Petroleum Development Company Limited on the Forcados oil terminal pipeline, gas supplies
to the plant by its primary gas supplier was largely impacted in the third quarter.

However, it stated that the company’s adoption of an effective cost-saving strategy reduced its administrative cost from N10.9 billion to N2.9 billion in 2022.

Consequently, operating profit rose to N16 billion, up from N15.1 billion recorded within the same period in 2021.

Furthermore, it also added that the increase in finance cost which was largely attributable to the medium-term bond of N40.085 billion issued by the company in 2022 for its planned acquisition, moderated the profit before tax (PBT) and profit after tax(PAT) to N13.9 billion and N10 billion respectively.

The power-generating firm ended the period under review with total assets of N171 billion, up from N115 billion in 2021. The firm had its 2.5 billion shares listed by introduction on the NGX at N100 per share, translating into N250 billion.

Executive Chairman of GPP, Femi Otedola, had stated that the listing was an actualisation of a vision to bring world-class standards in governance, sustainability, and business processes to the company and the Nigerian electricity sector.

“Listing on the main board of the exchange will ensure that the long-term growth of the company is assured and its benefits will be passed on to our esteemed shareholders,” he said.

Chairman of Nigerian Exchange Limited (NGX), Abubakar Mahmood stated that the exchange was particularly pleased that GPP joined the prestigious group of companies listed on the main board, which will differentiate it as a professionally run power company with high standards, having met NGX’s listing criteria.

“The main board listing is a sign of commitment to strong corporate governance, excellence, professionalism, efficiency in service delivery, and providing increased returns to shareholders. We expect that the Geregu Power listing will encourage other power generation and distribution companies to list their shares on the Exchange, thereby opening the sector up to cheaper, long-term capital that will boost infrastructural development and value creation,” he said.

Also speaking, the Chief Executive Officer, NGX, Temi Popoola, said: “The listing is a promising development in the country’s power sector and we are delighted to welcome GPP to the Exchange.”

According to him, the listing will enhance liquidity for GPP, increase its visibility among global investors, elevate its value and boost transparency, as our marketplace is a sterling platform for raising capital and enabling sustainable growth for national development.