Home » Femi Otedola’s power company aims for $39.56 million in revenue in Q1 2024

Femi Otedola’s power company aims for $39.56 million in revenue in Q1 2024

Nigerian powerhouse Geregu Power targets $7.04 million profit after tax in Q1 2024

by Omokolade Ajayi
Femi Otedola

Geregu Power Plc, a leading force in Nigeria’s power sector, helmed by billionaire entrepreneur Femi Otedola, is gearing up to generate an estimated N31.24 billion ($39.56 million) in revenue during the first quarter of 2024.

This ambitious financial forecast, revealed in the company’s recently published earnings forecast, marks a substantial leap from the N14.23 billion ($18 million) earned in the same period of 2023.

The Otedola-led power giant anticipates direct costs amounting to N16.76 billion ($21.2 million) during the first quarter of 2024, a significant increase compared to the N7.26 billion ($9.2 million) recorded in the corresponding period of the previous year — despite the challenges in its operating environment, the company managed to post a profit of N3.6 billion ($4.6 million) between January and March 2023.

Nigerian powerhouse Geregu Power targets $7.04 million profit after tax in Q1 2024

According to the latest earnings forecast, Geregu Power is optimistic about achieving a gross profit of N14.48 billion ($18.34 million) for the first quarter of 2024. Additionally, the company is targeting a profit after tax of N5.56 billion ($7.04 million) — reflecting its commitment to sustained growth in the dynamic power sector.

The firm’s financial success in 2023 set a solid foundation for its current projections. In the first nine months of 2023, the company recorded a 43-percent surge in revenue, from N39 billion ($50.8 million) in 9M 2022 to an impressive N55.75 billion ($72.66 million) in 9M 2023.

Geregu Power doubling down: Acquisition plans signal major expansion in the power sector

Under the leadership of the Nigerian billionaire businessman, revenue from energy sales rose from N24.78 billion ($32.3 million) to N34.8 billion ($45.3 million), while capacity charges increased from N14.23 billion ($18.54 million) to N20.95 billion ($27.23 million).

Geregu Power‘s role in Nigeria’s power industry is underscored by its operation of Geregu I, a 435MW gas-fired power plant contributing significantly to 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 company’s impressive financial performance.

As part of its strategic expansion plan, Geregu Power is in the process of acquiring Geregu II, this is expected to increase its overall generating capacity by an estimated 434MW — it reflects the company’s unwavering commitment to meeting Nigeria’s escalating energy demands and fostering continuous growth within the power sector.

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