Geregu Power Gains 37% After Dividend Announcement
With get-me-inside shares demand requests to stockbrokers, Geregu Power Plc gained 37% in a week as equities investors position strongly after the company announced dividend payment for the financial year 2022.
Though, the company recorded a strong year-on-year decline in the top and bottom line following disruption in its business line, the board of directors recommend N8 dividend per ordinary share for shareholders with February 27 as the qualification date, its audited statement shows.
In its 2022 financial statement submitted to the Nigerian Exchange, the company’s profit fell by more than 50% to N10.171 billion, from N20.550 billion. This followed an apparent decline in activities level.
Geregu’s revenue slumped to N47.619 billion at the end of 2022, a decline of 32.89% when compared with N70.956 billion in the corresponding year in 2021.
The company said in its financial statement that energy sold declined year on year to N30.252 billion, down 33.80% from N45.696 billion in the corresponding period. Similarly, revenue from capacity charge nosedived to N17.367 billion from N25.260 billion.
Geregu attributes the decline in topline to nationwide force majeure (FM) declared by Shell Petroleum Development Company Limited on the Trans-Forcados pipeline and its consequent effects on the Forcados oil terminal, gas supplies to the plant by Its primary gas supplier ceased from 17th of July 2022.
It said in the audited report that the maintenance works on the pipelines were however completed at the end of November 2022 and gas supplies and normal operations have since then resumed.
Last week, over 431 million shares were transacted in the local bourse, according to trading data. The power company’s 2.5 billion outstanding shares were valued at N545.5 billion as its market price printed at N219.
Recall that in 2021, the FGN divested the remaining 20% shareholding to Amperion thereby making Amperion Power Distribution Company Limited the 100% owner of Geregu Power Plc.
With this development, FGN has ceased to be a shareholder of Geregu Power Plc. The Company was listed on the main board of the Nigerian Exchange Group on 05 October 2022, according to the audited report. # Geregu Power Gains 37% After Dividend Announcement
