Geregu Power declares 8.85% drop in profit to N12.29bn

Geregu Power Plc has announced 8.85 per cent drop in profit before tax to N12.29 billion in unaudited result and accounts for the half year (H1) ended June 30, 2023 from N13.49 billion reported in half year (H1) 2022.

The company reported N34.7 billion revenue in H1 2023 result and accounts, a  growth of 2.6 per cent from N33.8billion reported in the corresponding period of 2022.

The breakdown of revenue showed that Energy sold in H1 2023 stood at N21.65billion, an increase of 0.7 per cent from N21.5billion in H1 2022, while revenue from energy charge closed H1 2023 at N13.05billion, an increase of 6.03 per cent from N12.3billion reported in H1 2022.

Cost of sales closed H1 2023 at N16.54billion, a decline of nearly three per cent from N16.997billion in H1 2022 to dragged gross profit to N18.16 billion in H1 2023 from N16.83 billion in H1 2022. 

Geregu Power ‘s impairment loss on financial assets moved to N1.9 billion in H1 2023 from N518.45million in H1 2022 as administrative expenses rose by nearly 40 per cent to N2.42billion in H1 2023 from N1.72billion in H1 2022.

Furthermore, from the profit & loss figures, Geregu Power saw its finance cost at N6.15billion in H1 2023 from N1.67billion in H1 2022.

The interplay between finance cost and impairment loss on financial assets on financial assets played critical role in the company’s profits.

The company in 2022 financial year had declared N8.00 per share dividend to shareholders.

The electric power generating company listed on the Exchange in 2022 emerged as the first listed company to release full audited financial statements in compliance to the post-listing requirements.

The declared dividend translated into N20 billion and it implies an annualized yield of 24per cent for shareholders who bought the company’s share when it was listed at N100 per share.

In the audited results, the company declared N47.62 billion revenue in 2022 from N70.96 billion reported in 2021, while profit after tax stood at N10.17 billion in 2022 financial year.

The company, majorly owned by billionaire businessman, Femi Otedola’s 2.5 billion ordinary shares of 50 kobo each at N100 per share were admitted on the Exchange.

The listing of Geregu’s shares added N250 billion to the market capitalisation of NGX.