Q1 24: Otedola’s Geregu Power forecasts N31.2bn revenue, N14.4bn profit

Geregu Power Plc., Nigeria’s leading power generation company (GenCo), is seeing a better operating 2024 with its revenue and profit forecasts.

The power firm is forecasting a revenue of N31,242,404,000 for the first quarter of 2024 (January, February and March) with the cost of sales put at N16,759,953,000.

Geregu power company is projecting a gross profit of N14,482,451,000 for the three-month period.

The first electricity company to be admitted into the main board of the Nigerian Exchange Limited (NGX) is owned by philanthropist billionaire, Mr. Femi Otedola.

According to the document titled “FORECAST OF STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME” and sent to the investing public through The Exchange on Friday, December 8, 2023, the company puts Administrative Expenses at N5,383,983,000 leaving N9,098,468,000 as Operating Profit.

The document was co-signed by Akin Akinfemiwa, the Chief Executive Officer and Ganiyu L. Adisa, the Chief Financial Officer.

In its forecast, the power firm put Finance Income at N1,456,768,000 and Finance Cost at N2,254,879,000 leaving Net Finance Cost at N798,111,000.

According to the document, Profit before income tax was put at N8,300,357,000 while Income tax expense stands at N2,739,533,000 leaving profit for the period at N5,560,824,000.

In its forecast on Cash Flows from operating activities for the quarter ending 31 March 2024, Geregu Power Plc. projects N19,993,184,000 as Cash receipts from energy and capacity charges.

The power firm is also targeting N17,962,691,000 as Cash paid to suppliers and employees while N2,030,493,000 is projected as Cash generated from operations with Income taxes paid put at N1,440,000,000 and Net cash generated from operating activities stands at N590,493,000.

 

Geregu Power Plc. has continued to overcome macroeconomic headwinds as its nine-month profit before tax soared to N17.48 billion.

For the first nine months through September 2023, Geregu Power’s pre-tax profit spiked by 25.30 per cent to N17.48 billion from N13.95 billion as at September 2022.

Revenue was up 42.92 per cent to N55.74 billion in the period under review from N39 billion the previous year.

A breakdown of the revenue figure shows energy sold rose 40.45 per cent to N34.79 billion from N24.77 billion, while capacity charge went up 47.32 percent to N20.95 billion.

Operating profit followed the same growth trajectory as it rose 24.09 per cent to N19.88 billion from N16.02 billion.

Investors have confidence in the firm’s growth prospects as its shares have gained 127.85 per cent so far this year, outperforming the NGXASI index’s 31.42 per cent, making it one of the best performers in the index.

The Geregu Power plant consists of three simple cycle natural gas fired SIEMENS V94.2 STG5-2000E gas turbine generator units with a 435MW Installed Capacity. The Turbine units are GT11, GT12, and GT13 and each is designed to produce 145 MW at 15.75KV, stepped up to 330kV via a 173.6MVA Power Transformer and now generates on average Ten (10%) per cent of Nigeria’s power.

The Star