Geregu Power Plc, a leading power generation company listed on the Nigerian Exchange Limited (NGX), has reported a remarkable financial performance for the fiscal year ending December 31, 2024. The company’s audited results showcase a significant surge in profitability, driven by robust revenue growth and effective cost management. This performance solidifies Geregu Power’s position as a key player in the Nigerian power sector and underscores its commitment to delivering value to its shareholders. The company’s proactive approach to financial reporting, consistently publishing its audited results in January, further reinforces its commitment to transparency and corporate governance.
The company’s profit before tax soared to N41 billion, representing a remarkable 69% increase compared to the N24 billion recorded in the 2023 financial year. Similarly, the profit after tax reached N27.4 billion, a substantial 71% jump from the N16 billion reported in 2023. This achievement marks the highest profit declared by Geregu Power since its listing on the NGX and within the past five years. The robust profitability can be attributed to the company’s strategic initiatives, operational efficiency, and favorable market conditions. This exceptional financial outcome underscores the company’s resilience and adaptability in the dynamic Nigerian power sector.
The impressive financial performance was fueled by a significant 65.3% surge in revenue, reaching N137.13 billion in 2024, compared to N82.91 billion in 2023. This revenue growth was primarily driven by a substantial increase in energy sales, which rose by 69% to N87.5 billion from N51.8 billion in the previous year. Furthermore, capacity charges also contributed significantly to the revenue growth, increasing by 59.6% to N49.66 billion in 2024, compared to N31.11 billion in 2023. These figures demonstrate Geregu Power’s ability to effectively capitalize on market opportunities and optimize its operational capacity.
While the company achieved remarkable profitability, it also incurred an impairment charge of N9.45 billion on receivables from the Nigerian Bulk Electricity Trading Plc (NBET) in 2024, bringing the total impairment on NBET receivables to N16.2 billion. This amount represents approximately 12% of the outstanding balance at the end of 2024. The company noted that if the impairment charges were aligned with the industry average of 6%, the profit could have potentially reached N50 billion. This highlights the impact of the prevailing market conditions and the challenges associated with receivables management in the Nigerian power sector.
Geregu Power’s commitment to operational efficiency is reflected in its operating expenses, which decreased by 13% from N13 billion in 2023 to N9.5 billion in 2024. This cost optimization played a crucial role in enhancing the company’s overall profitability. Further demonstrating its commitment to shareholder value, the Board of Directors proposed a final dividend of N8.50 per ordinary share, totaling N21.25 billion. This represents a slight increase compared to the N20 billion dividend paid to shareholders in the previous year, underscoring the company’s commitment to rewarding its investors.
The company’s financial strength is further evident in its robust balance sheet. Total assets increased by 33.7% to N243.5 billion in 2024, compared to N182 billion in 2023. Non-current assets, primarily driven by property, plant, and equipment, rose to N72.6 billion from N36.3 billion in the previous year, reflecting a significant investment of N42 billion in a major overhaul of its plants. This investment underscores Geregu Power’s commitment to maintaining and upgrading its infrastructure to ensure long-term operational efficiency and reliability. Current assets also increased to N170.8 billion from N145.6 billion, with trade and receivables accounting for a significant portion at N121.8 billion. Furthermore, the company actively managed its debt profile, repaying approximately N17.6 billion in bonds and external borrowings while securing an additional N9.7 billion in borrowings. Geregu Power’s stock price closed at N1,150 per share as of January 31, 2025, further reflecting market confidence in the company’s performance and prospects. The company’s consistent and timely publication of its audited financial statements reinforces its commitment to transparency and good corporate governance.
