Geregu Power Outperforms Q1 Profit Expectation by 160%
Geregu Power Plc outperformed its profit expectation for the first quarter of 2024 by more than 160%, according to MarketForces Africa analysts review. Earnings per share skyrocketed by 307% year on year to N5.78 from N1.42 posted in the first quarter of 2023.
Details from the Nigerian Exchange showed that the company is currently priced at N2.5 trillion in the stock market less than 2 years after it listed 2.5 billion outstanding shares at N100 – in Oct, 2022.
In its latest unaudited financial statement filed with the regulator, the power generating company told the market that its first quarter of 2024 profit settled at N14.46 billion- a narrow distant from N16 billion profit the power generation company declared in 2023.
The amount posted as profit translate to about 308% year on year growth from N3.548 billion profit recorded in the first quarter of 2023. Its Q1-2024 sterling performance came in contrast against the company’s earnings expectation for the period.
MarketForces Africa reported that its chief executive Akin Akinfenwa and Chief Finance Officer Ganiyu Adisa, told investors that Geregu Plc expects to declare N5.56 billion as profit in the first quarter of 2024.
Q1-2024 strong earnings performance was propelled by surge in top line. Its unaudited financial statement, management revealed that revenue grew to N50.482 billion in Q1-2024 from N14.230 billion in the comparable period in 2023. This translates to about 255% year on year growth in revenue.
The company reported net finance income in the period as interest payments slide year on year even though income from short term investment position also witness a slide. Naira Suffers Big, CBN Goes Ballistic Against FX Whales
Profit before tax surged to N21.90 billion at the end of first quarter of the year. This translates to annual growth rate of more than 308% above N5.365 billion it posted in Q1-2023.
Its cash flow from operation was 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 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 Outperforms Q1 Profit Expectation by 160%
