Geregu Hits N997.5bn as Otedola Raises Stake
Geregu Power Plc has inched near N1 trillion in market valuation but momentum appears to have slowed down from the energy generation company. In the last seven trading sessions, the company share price has remained at N399 even when there were four days of upswings in the local bourse.
According to details from the market, Amperion Power Distribution Company Limited, a company owned by Femi Otedola, Chairman of Geregu Power Plc, has been increasing its shareholding with purchases from the open market.
In a cross-deal stock sale, Amperion Power Distribution Company Limited pumped N399 million on one million ordinary shares of Geregu Plc in November 2023 notice from insider trading showed.
In October, Otedola led Amperion Power Distribution company also spent N1.896 billion to acquire 4.8 million ordinary shares in Geregu Plc.
Representing the interest of the majority shareholders, Amperion bought 9,917, 717 shares of Geregu Plc for more than N3.124 billion on October 20, according to detail from the director dealing report.
In a statement submitted to the Nigerian Exchange signed by its chief executive Akin Akinfenwa and Chief Finance Officer Ganiyu Adisa, Geregu Plc expects to declare N5.56 billion as profit in the first quarter of 2024.
This comes in contrast to its cash flow from operation which is expected to settle at N590 million in the period. The company said it expects operating cash flow before working capital changes to settle at N9.79 billion in Q1-2024.
Details from the forecast document showed that the company expects a profit of less than N6 billion (about 18% of turnover) amidst an expectation that revenue would be over N31 billion in the same period.
The company forecasts its revenue to hit N31.242 billion, out of which it expects to offset N16.759 billion as costs of sales.
This would leave the power-generating company with N14.482 billion as gross profit. The company’s administrative expenses is expected to gulp N5.4 billion.
Net finance costs of about N800 million is expected to stand between the company’s operation profit of about N9.1 billion in the period and its pretax profit of N8.3 billion.
Geregu Power estimated about N2.4 billion as tax provision for the period, reducing its profit for the period to N5.56 billion. Geregu Power Plc Releases Q1-2024 Earnings Forecast #Geregu Hits N997.5bn as Otedola Raises Stake Naira Lost 11% as Banks Issue New Update on FX Spending
