Geregu Power Posts 42% Rise in Revenues, as PBT Hits N17.4b

Geregu Power, an electricity generation company, has announced an impressive 42 per cent increase in revenue during the first nine months of 2023, despite the challenging economic conditions.

Based on the data found in the company’s 9-month interim financial report, their revenue reached N55.7 billion, a significant rise from the N39 billion recorded in the same period last year.

Additionally, Geregu Power reported a pre-tax profit of N17.4 billion, marking a substantial growth of 25.3% compared to the N13.9 billion reported in the corresponding quarter of 2022.

In terms of profit after tax for the period under review, Geregu Power achieved N11.3 billion, up from N10 billion in the same period last year.

It’s worth noting that the company has already surpassed its total profits of N10.1 billion reported for the entire year in 2022.

These impressive financial results demonstrate Geregu Power’s resilience and strong performance in a challenging economic environment.

An analysis of the revenue performance in the most recent quarter highlights a significant surge in key revenue streams, contributing to the remarkable overall performance of Geregu Power.

For instance, the revenue generated from energy sales in the three months ending in September 2023 surged from N3.2 billion in the same quarter last year to an impressive N13.1 billion.

This substantial increase played a pivotal role in boosting the total energy sales figure to N34.7 billion, a notable rise from N24.77 billion recorded over the course of 9 months.

Furthermore, the company reported earnings of N7.9 billion from capacity charges, compared to N1.9 billion for the same period last year.

Likewise, the total capacity charges for the first 9 months saw a remarkable increase, reaching N20.9 billion, up from N14.2 billion.

Remarkably, Geregu Power has not only exceeded its entire 2022 revenue of N47.6 billion but has achieved this milestone in just the first 9 months of 2023.

The company’s performance during the reviewed period was achieved despite the challenges presented by a demanding business environment, marked by escalating inflation and the depreciation of the Nigerian naira, which also had an impact on its bottom line.

Notably, the company reported an impairment loss of N3.1 billion, a significant increase from the N162 million recorded in the same period in 2022. This impairment reflects provisions made for energy sold but yet to be received in due time.

Administrative expenses also witnessed a substantial increase, rising from N2.7 billion in the previous year to N5.8 billion during the period under review.

This increase can be attributed to the effects of rising inflation and exchange rate depreciation.

An illustrative example of this expense increase can be seen in the personnel costs, which escalated from N885 million to N1.4 billion, indicating potential salary and bonus adjustments for staff.

Furthermore, expenses related to the repairs and maintenance of plants and machinery experienced a significant rise, going from N89 million to N1.5 billion. This suggests the company may have incurred a one-time cost for the maintenance of its power plant.