Nigerian billionaire Femi Otedola’s energy firm targets $23.9-million revenue in Q2 2024

Geregu Power Plc, a leading force in Nigeria’s power industry under the helm of Nigerian billionaire Femi Otedola, has unveiled ambitious financial projections for the second quarter of 2024. According to the company’s recently published earnings forecast, Geregu Power anticipates generating an estimated N38.17 billion ($23.94 million) in revenue

This forecast marks a remarkable 22.2-percent increase from the N31.24 billion ($19.59 million) revenue targeted for the first quarter of 2024. Additionally, it showcases an impressive 86 percent surge compared to the actual N20.43 billion ($12.8 million) revenue achieved in the second quarter of the preceding year.

Geregu Power sets Q2 2024 profit after tax target at $5.8 million, doubling previous year’s figures

In the second quarter of 2024, Geregu Power expects direct costs to mount to N17.37 billion ($21.2 million), reflecting a significant uptick from the N9.29 billion ($5.82 million) incurred during the same period in the previous fiscal year.

According to the latest earnings forecast, the power-generating giant is optimistic about achieving a gross profit of N20.79 billion ($13.04 million) in the second quarter of 2024.

Furthermore, the company aims for a profit after tax of N9.22 billion ($5.78 million) during this period, more than doubling the N4.51 billion ($2.83 million) profit reported in the corresponding quarter of 2023. This underscores Geregu Power’s commitment to sustained growth in Nigeria’s dynamic power sector.

Geregu Power’s 2023 success fueled by soaring energy sales and capacity charges

Geregu Power’s role in the country’s power landscape is underscored by its operation of Geregu I, a 435MW gas-fired power plant that significantly contributes to the nation’s total electricity generation.

The recent substantial overhaul of the plant, resulting in the generation of between 260MW to 270MW of power, has played a pivotal role in the company’s impressive financial performance in recent times.

The firm’s success in 2023 laid a solid foundation for its current projections. According to its annual report, Geregu Power experienced a 74.1 percent surge in revenue, skyrocketing from N47.62 billion ($29.9 million) in 2022 to N82.91 billion ($52 million) at the end of 2023.

This was driven by increased energy sales and capacity charges, reaching N51.8 billion ($32.5 million) and N31.1 billion ($19.5 million), respectively. This has further solidified Geregu Power’s position as one of Nigeria’s most profitable entities in the power sector.