Geregu Power Bolsters Profit by 13% to N11.4bn
Geregu Power Plc posts more than N11.359 billion profit at the end of nine months of the financial year 2023, a 13.26% growth from N10.029 billion the company delivered in the comparable period in 2022.
Despite the surge in the bottom line, investors offloaded the company share in bulk, losing 7.2165% over the week amidst uncertainties in the economy. Detail from the company’s regulatory filing showed that revenue surged N55.747 billion, a significant increase of more than 42% year-on-year from N39.03 billion in the comparable period in 2022.
Following an increase in activity levels, Geregu Power Plc also recorded a surge in costs of sales amidst pressures on price levels in the economy. Details from its financials showed that costs of sales rose by 33.91%, from N20.057 billion to N26.86 billion.
The company’s performance was reduced by the absence of other income lines, exactly a year after it reported N11.444 billion at the end of nine months of operations in 2022.
Dragging the company’s performance, impairment in financial assets widened to NN3.127 billion at the end of the nine months in 2023, versus N162 million reported a year ago.
The power company’s administrative overheard spending also surged more than double in the period, from N2.766 billion in 9 months of the financial year 2022 to N5.871 billion 12 months after.
Though operating profit remains relatively healthy when compared with the prior year’s result, negative cost movement impacted the company’s efforts to ramp up revenue.
At the end of the nine months, Geregu Power reported N19.887 billion, more than 24% above N16.028 billion reported a year ago. Net finance surged moderately despite a much higher borrowing rate.
The company reduced the impacts of higher costs of borrowings with interest income on its naira assets in terms of finance income. Its result showed that finance costs surged to N8.849 billion from N4.225 billion in 9 months of 2022.
However, the company also ramped up income from its short-term naira assets. Geregu Power reported that its finance income rose to N6.088 billion in 12 months from N2.155 billion in the equivalent period in 2022.
Its profit before tax obligation surged from N13.957 billion at the end of 9 months of financial year 2022 to N17.486 billion exactly 12 months after as the company strives to boost its investors’ wealth. #Geregu Power Bolsters Profit by 13% to N11.4bn Naira Devaluation Deepens Economic Crisis in Nigeria
Detail analysis to follow…