Geregu Power Faces ₦246bn Burden Amid Market Apathy

Geregu Power Plc is grappling with a mounting financial burden, as liabilities surged to ₦246.38 billion in its 2025 financial year, up from ₦190.91 billion in the previous year, despite its share price remaining stagnant, reflecting investor apathy despite the company’s dividend declaration.

Despite the financial strain, the company’s share price remained flat at ₦1,141.50 between March 14, 2025, and January 16, 2026.

This represents a slight decline from its opening price of ₦1,150.00 on January 2, 2025, translating to a year-to-date return of -0.74 per cent.

Trading activity has also been muted, with Geregu ranking 93rd in trade volume over the past three months, exchanging 32.2 million shares across 3,745 deals.

The subdued market response comes even as Geregu declared a proposed dividend of ₦9.00 per share for 2025, an increase from ₦8.50 in 2024. Profit after tax slipped marginally to ₦27.25 billion from ₦27.42 billion a year earlier, while fourth-quarter pre-tax profit fell to ₦9.56 billion, down from ₦11.78 billion in Q3 2025 and slightly below ₦9.84 billion in Q4 2024.

For the full year ended December 31, 2025, pre-tax profit rose modestly by 1.74 per cent to ₦41.98 billion, compared to ₦41.26 billion in 2024. Total assets expanded on the back of higher receivables, which climbed to ₦201.1 billion, alongside a doubling of inventories. Annual revenue saw a significant boost, driven by stronger energy sales and capacity charges, though rising costs weighed on overall performance.

The company’s ownership structure also underwent a significant shift in 2025. Billionaire businessman Femi Otedola completed a $750 million divestment, selling his 95 per cent stake in Amperion Power Distribution Company Ltd, which controlled Geregu Power, to MA’AM Energy Ltd, an Abuja-based integrated energy firm active in power generation and trading.

With liabilities mounting and share price performance stagnant, Geregu Power faces a delicate balance between sustaining profitability, rewarding shareholders, and navigating its new ownership era.