Nigerian billionaire Femi Otedola’s power empire rakes in $90-million revenue in 2023

Geregu Power Plc, a prominent player in Nigeria’s power industry, majority owned by Nigerian billionaire Femi Otedola, demonstrated remarkable resilience throughout the 2023 fiscal year, as revealed in its recently published annual report and financial statements.

The company’s revenue soared beyond the $90-million mark during the period under review, marking a significant milestone in its operations. According to the figures in its annual report, Geregu Power’s revenue surged by 74.1 percent, catapulting from N47.62 billion ($53.3 million) in 2022 to N82.91 billion ($92.8 million) at the end of 2023.

This double-digit surge in revenue was primarily fueled by increased energy sales and capacity charges, which rose to N51.8 billion ($58 million) and N31.1 billion ($34.81 million), respectively, driving the company’s earnings to unprecedented heights and further solidifying its position as one of Nigeria’s most profitable entities.

Geregu Power soars: 110-percent surge in operating profit propelled by revenue boost and cost-effective strategies

Buoyed by the surge in revenue and the company’s recent cost-effective strategies, Geregu Power recorded a 110-percent surge in operating profit, from N14.82 billion ($16.6 million) in 2022 to N31.14 billion ($34.85 million) by the end of the group’s 2023 fiscal year. Similarly, its profit after tax experienced a substantial upturn, climbing from N10.16 billion ($11.37 million) to N16.05 billion ($17.96 million) during the same period.

The impressive end-of-year profits translated into remarkable earnings per share of N6.42 ($0.00718) for the group’s 2.5 billion outstanding shares, a significant increase from the previous year’s earnings per share of N4.07 ($0.00455).

Consequently, the company’s board recommended a dividend payment of N8 ($0.174) per share to shareholders, scheduled to be disbursed on Mar. 28, 2024. This dividend payout is anticipated to yield substantial returns for Femi Otedola, who holds a commanding 78.6-percent stake in the leading power generation company, equivalent to 1,965,979,283 shares.

Otedola’s Geregu Power maps out aggressive expansion, aims to boost capacity to 1,300 MW

Geregu Power has solidified its position as a dominant force in Nigeria’s energy generation landscape, boasting ownership of three natural gas-fired power plants with a collective capacity of 435 megawatts, contributing significantly to the nation’s overall energy generation capacity.

Looking ahead, the Otedola-led power company has set ambitious expansion targets, aiming to elevate its total capacity from 435 megawatts to 1,300 megawatts over the next two years. This underscores the company’s commitment to addressing Nigeria’s energy demands while aiming to bolster its earnings and revenue through sustained growth in the power sector.