Femi Otedola, one of Africa’s wealthiest individuals, has seen a remarkable surge in his fortunes, with his stake in Geregu Power Plc increasing by $250 million in just eight days.
The N192.31-billion ($251.45 million) surge in the market value of Otedola’s stake, is attributed to renewed investor interest following the release of Geregu Power’s third-quarter financial results, demonstrating substantial growth in the company’s profit and revenue.
Geregu Power, a prominent player in Nigeria’s energy generation sector, operates three natural gas-fired power plants with a combined capacity of 435 megawatts, representing 10 percent of the nation’s total power generation capacity.
According to data tracked by Billionaires.Africa, Otedola, through his company, Amperion Power Distribution Company, holds an imposing 95.56-percent stake in Geregu Power, equivalent to 2,388,921,063 shares.
Over the past eight days, the market value of Otedola’s stake in Geregu Power has soared by N192.31 billion ($251.45 million), from N752.51 billion ($983.95 million) on Oct. 23 to N944.82 billion ($1.23 billion) as of the time of this report. This remarkable increase can be attributed to the 25.5 percent surge in Geregu Power shares on the Nigerian Exchange.
Investors have responded positively to Geregu Power’s robust financial performance in the first nine months of the 2023 fiscal year. The company’s unaudited interim financial statement, released on Wed., Oct. 18, revealed significant growth in both revenue and earnings.
During this period, the group reported 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.
Fueled by Otedola’s leadership, the company excelled across all segments, with revenue generated from energy sales increasing from N24.78 billion ($32.3 million) to N34.8 billion ($45.3 million). Simultaneously, capacity charges surged from N14.23 billion ($18.54 million) to N20.95 billion ($27.23 million) during the period under review.
With Geregu Power’s impressive performance and Otedola’s rising fortunes, the company solidifies its position as a key player in Nigeria’s energy sector.
