Geregu Power Declares N8 Dividend as Profit Spikes
Femi Otedola, Chairman, Geregu Power Plc

Geregu Power Plc’s earnings swelled by 58% due to strong operating performance that boosted its profitability level in 2023. Due to a better outing in 2023, its board of directors has declared a final dividend of N8 per share.

Equities investors in the stock market reacted positively to the dividend announcement as Geregu Power Plc’s share price climbed to N517.80 from N495 despite selloffs in the Nigerian Exchange.

Its majority shareholders would collect the largest part of the total dividend for the year. At the end of 2023, about 84% of the power company shares were held by Amperion Power Distributions Limited and Libraville Power. The company announced a free float of 16.26%.

Details from its financial statement revealed that Nigeria’s first power company to be listed on the local bourse reported impressive double-digit growth in the top line and bottom lines. Revenue climbed as a result of increased energy sales and capacity charges recorded in 2023, according to data from the company’s financial scorecard.

Details showed that the power company’s revenue soared 74.1% year on year to N82.91 billion in 2023 and was driven by volumes from total energy sold and capacity charge generated.

Geregu Power generated N51.8 billion from energy volume sold in 2023 from N30.25 billion and an additional income of N31.1 billion from its capacity charge versus N17.37 billion in 2022. Meanwhile, the surge in the company’s revenue was offset by a sharp year-on-year increase seen in its cost of sales. Details showed costs of sales climbing by 64% to N40.3 billion in 2023.

However, despite this increase, gross earnings improved impressively by 84.35% to N42.66 billion in the period. The power company’s operating profit saw a remarkable 110% increase to N31.1 billion.  Selloffs Provoke Spike in Nigerian Treasury Bills Yield

But administrative expenses surged sharply by 173.23% to N12.97 billion during the same period, mainly due to a significant rise in expenses related to the repair and maintenance of plant and machinery, which escalated from N212 million in 2022 to N6.37 billion in 2023.

Its net income came stronger despite the margin dilutive pressures. Profit after tax grew by about 58% to N16.05 billion in 2023. The company’s bottom line was supported by a surge in foreign exchange gains to N502.3 million during the year. #Geregu Power Declares N8 Dividend as Profit Spikes