Geregu Power reports N346.26bn profit in Q3 2024
Omeiza Bilal
Geregu Power Plc, listed under power generation sector at the Nigerian Exchange has released its nine months financial result, 2024, reporting pre-tax profits of N36.262 billion .
The amount represents an increase of 107.73 per cent compared with N17.456 billion recorded the same period of 2023.
The company third quarter result submitted at the Nigerian Exchange reveals that Geregu Power generated total revenue of N112.5 billion, representing a 102 per cent increase year-on-year against N55.747 billion achieved in the corresponding period of 2023.
Cost of sales also went up from N26.860 billion in the third quarter of 2023 to N57.930 billion at the end September this year.
While impairment loss on financial assets rose to N10.153 billion in the reviewed year from N3.127 billion in the previous year, the administrative expenses up from N5.871 billion in 2023 to N7.484 billion this year.
For the quarter ending September 2024, the company reported revenue of N31.9 billion, up from N27 billion in the same period of 2023.
The revenue breakdown reveals that N71.4 billion was generated from energy sales, while N41.1 billion came from capacity charges.
Despite inflationary pressures and rising costs, Geregu Power maintained strong gross margins of over 41per cent, though this was slightly below its historical margin of 50 per cent.
The company has projected a pre-tax profit of N16.8 billion and a profit after tax of N11 billion for the final quarter of 2024.
This projection highlights the company’s potential to continue its robust earnings growth despite operating at around 50 per cent capacity due to grid constraints and market challenges.
According to operators, Geregu Power’s performance has been buoyed by recent positive developments in Nigeria’s electricity industry.
Several government initiatives aimed at addressing chronic issues within the power sector, including reforms of the Transmission Company of Nigeria (TCN) and increased private sector involvement, have created a more favorable operating environment for power generation companies (GenCos) like Geregu.
In 2023, the Nigerian Electricity Regulatory Commission (NERC) approved higher electricity tariffs, which have positively impacted on the profitability of generation companies by ensuring a better alignment between costs and revenues.
