Home » Nigerian billionaire Femi Otedola’s energy firm targets $28.2-million revenue in Q3 2024

Nigerian billionaire Femi Otedola’s energy firm targets $28.2-million revenue in Q3 2024

Power generation giant eyes $28.2-million revenue; significant growth anticipated.

by Omokolade Ajayi
Femi Otedola

Key Points:

  • Geregu Power projects Q3 revenue of N42.5 billion ($28.2 million), up 102% YoY and 11% from Q2 target.
  • Planned capacity increase to 1,200MW fuels growth, driven by Siemens partnership and government acquisition.
  • Geregu targets N9.87 billion ($6.56 million) profit in Q3, reflecting commitment to growth in Nigeria’s power sector.

Geregu Power Plc, a leading power generation company led by Nigerian billionaire Femi Otedola, has unveiled its financial projections for the third quarter of 2024. The company’s recently published earnings forecast reveals an estimated N42.51 billion ($28.2 million) in revenue.

This revenue forecast represents a remarkable 101.9-percent increase from the N21.05-billion ($14 million) revenue generated in the third quarter of 2023. It is also 11.3-percent higher than the N38.17 billion ($23.94 million) targeted for the second quarter of 2024.

Geregu Power’s expansion drive accelerates

Geregu Power’s impressive forecast is bolstered by its plans to expand total capacity from 435MW to 1,200MW. This expansion leverages a recent partnership with Germany-based Siemens Energy to enhance its power generation capacity, as well as the acquisition of one of five power plants being sold by the Nigerian government through the Ministry of Power.

The company expects direct costs in the third quarter of 2024 to rise to N21.89 billion ($14.55 million), a significant increase from N10.3 billion ($6.84 million) in the same period the previous year. Despite the higher costs, Geregu Power is optimistic about achieving a gross profit of N15.75 billion ($10.47 million) for the quarter.

Geregu Power aims for a profit after tax of N9.87 billion ($6.56 million) during this period, which is 140 percent higher than the N3.97 billion ($2.64 million) profit reported in the corresponding quarter of 2023. This underscores the company’s commitment to sustained growth in Nigeria’s dynamic power sector.

Femi Otedola’s Geregu Power milestones

Founded in 2006, Geregu Power began supplying electricity to Nigeria’s national grid in 2007. The company’s 435-megawatt (MW) capacity power plant significantly contributes to the nation’s energy needs.

In 2013, a consortium led by Femi Otedola’s Amperion Power Distribution Company Limited acquired Geregu Power, which included Calvados Global Services Limited and State Grid Shanghai Municipal Electric Power Company, the world’s largest utility.

Under Otedola’s leadership, Amperion invested $94 million in a 2014 plant overhaul, boosting capacity from 414MW to 435MW and achieving full utilization. Otedola’s firm progressively increased its stake in Geregu, reaching full ownership in 2021. In October 2022, Geregu Power became the first electricity generation company to list on the Nigerian Exchange.

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