Geregu Power Makes 46% Jump in Annual Profit as Turnover Nears N71 billion

– Geregu Power, controlled by the business tycoon Femi Otedola, had assets totalling N114.8 billion in value as of the end of the review period.

Geregu Power plant

Nigerian Exchange’s debutant Geregu Power Plc attained for 2021 a net profit level 45.5 per cent above the figure it announced a year earlier, according to audited earnings report of the Ajaokuta-based gas power generator issued on Monday.

Remarkable jumps in the volume of energy sold and capacity charge were the drivers of growth, shooting revenue by almost a third to N71 billion.

Geregu Power gained entry into the main board of the NGX, the second most prestigious listing segment of the equity marketplace on Wednesday, after quoting 2.5 billion shares at an initial market value of N250 billion.

It is the first power company to be separately listed on the exchange.

Other income climbed 140.4 per cent higher, predominantly spurred by the foreign exchange gain realised from trade conducted in currencies other than the naira in the course of the year.

The firm steeply adjusted its directors’ compensation package upward to N1.1 billion by about a half of the figure recorded a year before, a major pressure point for administrative expenses, which jumped 23.6 per cent to N5.5 billion.

Net finance income was -N11 million compared to N1.5 billion in 2020 as the company’s spending on servicing debt soared from N26.9 million to N959.1 million and the interest earned from bank deposits fell way behind the value reported one year earlier.

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