Geregu Power grows half-year revenue to N87.6bn

By Chukwuma Umeorah

Geregu Power Plc has reported a 9 per cent increase in revenue to N87.6 billion for the half year ended June 30, 2025, compared to N80.7 billion in the same period of 2024, reinforcing investor confidence in its operational resilience despite mounting cost pressures and tightening margins.

The unaudited interim financial statements approved by the Board on July 11, 2025, revealed that the power generation company posted a profit of N9.75 billion for the six-month period, up from N5.55 billion recorded in the corresponding period of the prior year. Earnings per share improved to N3.90, from N2.22 in H1 2024, underscoring enhanced returns to shareholders in the face of economic headwinds.

Cost of sales surged by 31 per cent year-on-year to N51.38 billion, driven largely by rising gas transportation costs, regulatory levies, and plant maintenance expenditure. Gross profit nonetheless expanded to N35.7 billion from N30.2 billion in the comparable period, while operating profit stood at N29.69 billion. The company also recorded a marginal foreign exchange loss of N1.3 million, reflecting the impact of naira volatility on its financial exposures.

The company faced additional challenges including significant expenses related to plant maintenance and regulatory charges, yet maintained full compliance with the Companies and Allied Matters Act and International Financial Reporting Standards. This was underscored in the directors’ statement of responsibilities, which emphasized robust accounting records and internal controls to safeguard assets.

Despite the cost challenges, Geregu Power’s net finance cost was contained at N1.72 billion, following a steady stream of finance income amounting to N3.43 billion and active debt servicing. Its finance cost, however, remained significant at N6.8 billion, linked to interest obligations on its bond and loan facilities.

As part of its funding structure, the company continues to service a N40.09 billion corporate bond issued in July 2022 at a coupon rate of 14.5 per cent, with a seven-year tenor. The bond restricts dividend payments until all bondholder obligations are fully discharged. Geregu also has an outstanding term loan with First Bank of Nigeria, backed by a comprehensive asset debenture and corporate guarantee. The disciplined financing structure reflected strategic cash flow management, contributing to the company’s financial stability.

The balance sheet showed total assets of N267.6 billion, up from N243.5 billion at year-end 2024. Cash and cash equivalents were steady at N39.57 billion, while trade and other receivables rose to N150.56 billion, highlighting an increase in outstanding energy payments. Total equity declined marginally to N51.5 billion, impacted by a N100 million actuarial loss on the company’s defined benefit plan.

Geregu Power’s total liabilities rose to N216.1 billion, driven by a significant increase in current obligations, including tax liabilities of N26.1 billion and trade payables of N120.2 billion. The directors maintained that the company remains a going concern, backed by strong revenue streams and structured financial controls. They further expressed confidence in Geregu Power’s financial position for at least the next twelve months, citing prudent financial management and operational stability.

The company continues to supply electricity to the National Grid through the Transmission Company of Nigeria, to the Nigerian Bulk Electricity Trading Plc, reaffirming its critical role in stabilizing national power delivery. Chairman, Femi Otedola, reiterated the company’s focus on “sustainable energy delivery and operational discipline, while reinforcing commitments to regulatory compliance and investor transparency.”

Geregu Power’s insider trading policy also remains in effect, prohibiting directors and related parties from dealing in its shares during closed periods, reflecting its commitment to transparency and corporate governance best practices.

The firm notes that despite broader macroeconomic challenges including inflationary pressures, foreign exchange instability, and sectoral liquidity constraints, its steady performance signals stability within Nigeria’s nascent but critical power generation landscape. Its ability to sustain profitability, improve shareholder value, and expand its asset base amid these difficulties positions it favourably among listed infrastructure companies on the Nigerian Exchange Limited (NGX).