Nigerian billionaire Femi Otedola’s Geregu Power rakes in $51.9-million revenue in H1 2024

Omokolade Ajayi -

Key Point

  • Geregu Power’s H1 2024 revenue surged 132.5% year-over-year to $51.9 million, driven by increased energy sales and capacity charges.
  • Profit soared 148.5% year-over-year, reaching $12.8 million in H1 2024, showcasing effective cost-optimization strategies.
  • Geregu Power signed an MOU with Siemens Energy to triple its power generation capacity to 1,200MW, enhancing Nigeria’s Electricity Supply Industry.

Geregu Power Plc, a leading power generation company led by Nigerian billionaire Femi Otedola, has delivered another impressive financial performance in the first half of 2024 (H1 2024).

Building on a strong Q1 2024, the company’s half-year revenue reached $51.9 million, further solidifying its position as a top player in the country’s power sector.

Revenue and profit surge

Geregu Power’s first-half 2024 revenue surged 132.5 percent year-over-year, reaching N80.7 billion ($51.9 million) from N34.7 billion ($22.4 million) in H1 2023. This significant increase is linked to a rise in both energy sold and capacity charge.

Total energy sold climbed to N50.8 billion ($32.7 million) compared to N21.7 billion ($14 million) in the prior year, while capacity charge jumped to N29.8 billion ($19.2 million) from N13 billion ($8.4 million).

Even more impressive, profit growth outpaced revenue growth. Geregu Power’s profit soared 148.5 percent year-over-year, reaching N20.01 billion ($12.8 million) in H1 2024 from N8.05 billion ($5.1 million) in H1 2023.

This performance reflects the effectiveness of the group’s cost-optimization strategies and cements Geregu Power’s position among Nigeria’s most profitable companies.

Company background and leadership

Founded in 2006, Geregu Power began supplying electricity to the national grid in 2007. A consortium led by Otedola’s Amperion Power Distribution Company Limited acquired the company in 2013.

This consortium 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. Otedola’s firm progressively increased its stake in Geregu Power, reaching full ownership in 2021.

Today, as a publicly listed entity, the leading Nigerian businessman with a net worth of $1.9 billion (as of April 18, 2024) holds a 78.05 percent stake in the leading power generation company.

Financial strength and expansion plans

Geregu Power’s impressive financial performance is reflected in its rising total assets, which surged to N207.7 billion ($133.9 million) as of June 30, 2024, from N182.04 billion ($117.4 million) as of December 31, 2023.

Notably, retained earnings remained steady at N43.9 billion ($28.3 million) despite a N20 billion ($13 million) dividend payout for the fiscal year ended December 31, 2023.

In May, Geregu Power signed a Memorandum of Understanding (MOU) with Germany’s Siemens Energy to triple its power generation capacity from 435MW to 1,200MW.

This collaboration focuses on developing sustainable and efficient power generation solutions at Geregu Power’s existing plant, extending asset lifespan, and supporting the growth of Nigeria’s Electricity Supply Industry (NESI).

Looking ahead

Geregu Power is also positioned to acquire one of five power plants being sold by the Nigerian government. These National Integrated Power Project plants are valued at approximately $1.15 billion and include the 434-megawatt Geregu II gas-fired plant.

The group’s strong financial performance and expansion plans solidify its position as a leader in Nigeria’s power sector. The company’s collaboration with Siemens and potential acquisition further its commitment to boosting Nigeria’s electricity generation capacity.