Geregu Power Plc, a leading player in the Nigerian energy sector, has been recognized by the Nigerian Exchange Limited (NGX) for its outstanding compliance with regulatory requirements. The company was bestowed with the prestigious “Most Compliant Listed Company” award for the 2023 financial year at the NGX’s 2024 Made of Africa Awards. This accolade underscores Geregu Power’s unwavering commitment to transparency, accountability, and adherence to the highest standards of corporate governance. The NGX award recognizes listed companies that consistently demonstrate exemplary compliance with its issuer rules, avoiding any penalties throughout the financial year. Geregu Power’s achievement reflects its meticulous approach to regulatory compliance, ensuring timely submission of financial reports and proactive disclosure of corporate information.
Geregu Power’s commitment to regulatory compliance is exemplified by its consistent and timely filing of both audited and unaudited financial results, as well as its proactive approach to corporate disclosures. The company has established a track record of holding its Annual General Meetings (AGMs) well ahead of regulatory deadlines, demonstrating its proactive engagement with shareholders and its commitment to transparent communication. As concrete evidence of its adherence to regulatory timelines, Geregu Power filed its 2023 audited financial results on January 30, 2024, and its first-quarter results on April 9, 2024, significantly ahead of the stipulated deadlines. This consistent and timely disclosure of financial information reinforces investor confidence and demonstrates the company’s commitment to transparency and accountability.
Beyond regulatory compliance, Geregu Power has also demonstrated impressive financial performance. For the nine months ending September 30, 2024, the company reported a remarkable 113% increase in profit after tax, reaching N24.1 billion compared to N11.36 billion in the corresponding period of 2023. This significant growth in profitability is a testament to the company’s robust business model and its ability to navigate the challenges of the Nigerian power sector. Despite facing constraints in national grid capacity, Geregu Power achieved a pre-tax profit of N36.2 billion, marking a substantial 107.3% increase from N18.1 billion in the previous year. This strong financial performance underscores the company’s resilience and its ability to deliver consistent growth despite prevailing market challenges.
Geregu Power’s robust financial performance is further highlighted by its impressive revenue growth. The company recorded a 102% surge in revenue for the nine-month period, reaching N112.58 billion compared to N55.75 billion in the same period of 2023. This remarkable growth is attributed to a combination of factors, including increased energy sales and capacity charges. Specifically, Geregu Power generated N71.4 billion from energy sales and N41.1 billion from capacity charges, demonstrating the effectiveness of its revenue generation strategy. This strong revenue growth reflects the company’s increasing market share and its ability to capitalize on opportunities within the Nigerian power sector.
The company’s positive performance has been reflected in its stock market performance, with its share price appreciating significantly. Geregu Power’s stock price has experienced a remarkable 188% year-to-date increase, reaching N1,150 per share as of December 6, 2024. This surge in share price reflects investor confidence in the company’s growth prospects and its ability to deliver sustained value creation. The company’s market capitalization has also grown substantially, reaching N2.88 trillion, further solidifying its position as a significant player in the Nigerian stock market. This strong market performance underscores the company’s attractiveness to investors and its potential for future growth.
Looking forward, Geregu Power is focused on expanding its power generation capacity and contributing further to Nigeria’s energy landscape. The company is actively pursuing capacity expansion initiatives, including a strategic partnership with Siemens Energy to triple its power generation capacity from 435 megawatts to 1,300 megawatts. This ambitious expansion plan aims to significantly increase the company’s contribution to the national grid and address the growing demand for electricity in Nigeria. Furthermore, Geregu Power is committed to incorporating renewable energy sources into its expansion plans, with 15% to 20% of the new capacity expected to come from renewables. This commitment to sustainable energy development aligns with global trends and positions Geregu Power as a forward-thinking leader in the Nigerian power sector. The company is also in the process of acquiring Geregu Power Plant II, a 434MW gas-fired project, and is developing Geregu 3, further enhancing its capacity to generate power and meet the nation’s energy needs. These strategic initiatives underscore Geregu Power’s commitment to long-term growth and its pivotal role in shaping the future of the Nigerian power sector.
