
Geregu Power Plc has reported a remarkable 69.5 percent increase in pre-tax profit for the full year of 2024, reaching N41.2 billion.
Profit after tax surged by 71 percent, totalling N27.4 billion. This marks the company’s fifth consecutive year of profitability, with total assets growing to N243.7 billion.
The surge in profits was primarily driven by a 65.3 percent increase in revenues. This is the highest profit Geregu Power has declared since its listing. The company, the first power company to list on the NGX, saw revenue from Energy Sold rise by 69 percent to N87.4 billion, and Capacity Charges grow by 59.4 percent to N49.6 billion.

However, the operating profit margin decreased slightly to 42.6 percent, down from 51.3 percent, reflecting inflation’s impact on the cost of goods sold. Operating expenses were significantly reduced, falling from N13 billion in 2023 to N9.5 billion in 2024. Impairment charges rose to N9 billion, compared to a write-back of N986 million the previous year. Analysts suggest that if these charges were brought down to a peer average of 6 percent, Geregu could have posted a profit of N50 billion.
Total assets increased by 33.74 percent year-on-year, reaching N243.4 billion, with non-current assets rising to N72.6 billion. Current assets also grew to N170.8 billion, with trade receivables contributing N121.8 billion.
The company repaid about N17.6 billion in bonds and external borrowings while borrowing an additional N9.7 billion. Geregu Power also invested N42 billion in assets under construction as part of its plant capacity expansion. It paid N20 billion in dividends last year and has recommended N21.25 billion in dividends for 2024, marking its first dividend increase since its listing in 2023.
Following the announcement of its financial results, the company’s share price closed at N1,150, with investors reacting positively to the performance.
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