Geregu Power’s nine-month profit more than doubles after surge in energy sold

Geregu Power’s net profit for the first nine months of the year climbed by more than twofold, compared to the same period of 2023.

The performance was helped by a dramatic jump in the income from energy sold, according to its earnings report issued on Thursday.

The electricity provider, which is backed by Africa Export and Import Bank’s Fund for Export Development in Africa, reported a 102 per cent increase in turnover at N112.6 billion for the period.

Top line derived strength from a marked improvement in energy sold and capacity charge – the two biggest contributors to the company’s revenue pool – setting the tone for a much-stronger gross profit.

Revenue for the quarter to September, however, fell 33.2 per cent short of a forecast by the power-generating firm in June, which expected turnover for the third quarter to top N42.5 billion and post-tax profit to reach N9.9 billion.

After-tax profit for the quarter stood at N4.2 billion.

Operating profit for the nine-month period took a battering from impairment loss on financial assets, which accelerated to N10.2 billion from N3.1 billion a year ago.

The company scaled back its finance costs by 13.6 per cent, following a lower interest expense on borrowings, helping moderate net finance costs by as much as 68.6 per cent.

Income tax liability soared almost two times to N12.1 billion on the back of the significant current tax the organisation incurred compared to last year.

Post-tax profit stood at N24.2 billion; it was N11.4 billion in the same period of last year.

Femi Otedola, the chairman of financial services group FBN Holdings, owns the controlling interest 78.1 per cent in the company, mostly through Amperion Power Distribution Company Limited.

Assets totalled N221.1 billion at the end of the review period, up by 21.4 per cent compared to last December.

The stock has yielded 188 per cent year to date, and carries a market value of N2.88 trillion.