Geregu Power Grows Profit by 149% in H1-2024
Geregu Power Plc posted about 149% year-on-year growth in profitability in the first half of 2024, according to details from its unaudited financial statement for 2024 submitted to the Nigerian Exchange.
The power generation company’s revenue climbed to N80.677 billion in the first half of 2024, up by 132.53% year on year from N36.696 billion in the comparable period in 2023.
The company reported improved topline performance, which was spurred by a steep increase in energy sales and capacity charges during the period. Energy sold climbed by 135% year on year from N21.651 billion in H1-2023 to N50.835 billion at the end of first half of 2024.
Likewise, revenue from capacity charges increased to N29.841 billion in the same period, from N13.045 billion. Its sales costs accelerated faster to N39.203 billion in the first half of the year, up by 137.07% year on year from N16.536 billion 12 months earlier.
In the last one year, the company’s other income shrank to less than N2 million from N11.34 million. Geregu Power also saw a steep surge in impairment loss on financial asset, up from N1.9 billion to more than N6 billion in the first half of 2024.
Its unaudited financial statement showed that operating income surged by about 120% year on year to settle at N30.412 billion from N13.855 billion. The power company’s bottom line was, however, bolstered by reduced net finance costs in the period. This was made possible by lower finance costs amidst relatively stable finance income.
Geregu Power reported that its net finance costs declined to N260 million from more than N1.56 billion 12 months earlier. Its lower finance costs was attributed to reduce interest payment on borrowings and on its local bond.
The company’s profit before tax came in at N30.152 billion in the first half of the year, translating to a 145% year on year surge when compared with N12.292 billion in pretax profit in the first half of 2023. Geregu Power tax provision increased strongly by 139% year on year to N10.139 billion from N4.238 billion in the corresponding period in 2023.
At the end of the first half of 2024, Geregu Power posted N20.013 billion as profit after tax, up by 148.5% year on year from N8.053 billion reported in H1-2023. Investment Firm Forecasts 34.25% Inflation Rate for June
