5 months ago
77
Cash-rich Geregu Power Plc has estimated a total profit of N9.87 billion for the third quarter of 2024, according to the company’s regulatory filing submitted to the Nigerian Exchange, NGX.
Its profit target is projected for a total revenue of N42.511 billion in the same period. Geregu Power also forecasted its sales costs to reach N21.892 billion. This is expected to leave the power-generating company with N20.618 billion in gross profit in the period.
With administrative expenses of less than N4.9 billion, Geregu Power forecasted that its operating profit for the period would reach N15.749 billion. Net finance costs are estimated at N747 million due to the strong impacts its finance income line is expected to have on more than N2.5 billion expected to be spent on interest payments.
READ ALSO: Board appointments: Abia APC members write Tinubu…
In the third quarter, Geregu Power Plc projected N15 billion in pretax profit, and the company estimated that it had to make provision of N5.128 billion as tax expenses for the period.
This left Geregu Power Plc with N9.874 billion in net profit in the third quarter of 2024, as details from its financial forecast submitted to the regulator showed.
Though heavy down the line, the company’s cash flow from operating activities is projected to be way lower than the profit the company made – this explains the difference between accounting profit and real cash flow movements.
According to its earnings forecast, cash flow from operating activities is expected to reach N2.316 billion in the third quarter of the year. Net cash used in investing activities is expected to be less than N2 billion.
Geregu Power is expected to service its debt with N2.314 billion between July and September 2024, in addition to another N2.890 billion payable on the amount raised via local bond sales.
The company expects its cash position to reduce to N65.611 billion at the end of the period from N70.256 billion at the beginning of the year.
About the author
English (US) ·