Geregu Power Plc, a prominent player in Nigeria’s power industry, majority-owned by Nigerian billionaire Femi Otedola, has showcased a robust financial performance in the first nine months of its 2023 fiscal year. The company’s unaudited interim financial statement, released on Wed., Oct. 18, reveals substantial growth in both revenue and earnings.
During this period, Geregu Power witnessed a remarkable 43-percent surge in revenue, climbing from N39 billion ($50.8 million) in the corresponding period in 9M 2022 to a robust N55.75 billion ($72.66 million) in 9M 2023.
Under Otedola’s leadership, the company has excelled across all its segments, with revenue generated from energy sales rising from N24.78 billion ($32.3 million) to N34.8 billion ($45.3 million). Simultaneously, capacity charges increased from N14.23 billion ($18.54 million) to N20.95 billion ($27.23 million) during the period under review.
This remarkable revenue growth translated into a substantial 52-percent increase in gross profit, reaching N28.89 billion ($37.5 million) at the end of the first nine months of 2023, compared to N18.95 billion ($24.6 million) in 9M 2022.
Despite incurring impairments on financial assets, totaling N3.17 billion ($4.12 million), along with administrative expenses amounting to N5.87 billion ($7.64 million), the leading power-generating company achieved a 24-percent increase in operating profit. Operating profit rose from N16.03 billion ($20.85 million) in 9M 2022 to N19.9 billion ($26 million) in 9M 2023.
Geregu Power has solidified its position as a key player in Nigeria’s power industry, operating Geregu I, a 435MW gas-fired power plant, which contributes nearly 10 percent of the nation’s total electricity generation. The recent substantial overhaul of the plant in the third quarter of 2023 played a pivotal role in the significant boost in the group’s revenue for the period.
As part of its capacity expansion efforts, Geregu Power is in the process of acquiring an additional plant, Geregu II, which is expected to augment its overall generating capacity by an estimated 434MW. This underscores the company’s unwavering commitment to meeting Nigeria’s energy demands while driving continuous growth within the power sector.
In a recent development, Otedola, the chairman of Geregu Power, unveiled a groundbreaking collaboration with the Lagos State government and the African Development Bank Group (AFDB) for a pioneering power transmission project.
Executed as a Public-Private Partnership (PPP), this project aims to establish Nigeria’s maiden PPP power transmission initiative, further solidifying Geregu’s dedication to fostering innovation in the Nigerian energy landscape.
