Geregu Power Sets for Fresh Uptrend, Hits All-Time High
Geregu Power Plc has set a fresh record, breached resistance to a new all-time high on the Nigerian Exchange (NGX) platform as investors’ eye utilities stock. Its share price has gained 15% in two trading sessions, up from N1,000 to N1,150 as investors traded huge volumes of shares on the NGX platform.
The power generating company share had stopped moving even after its impressive earnings outing in the first half of 2024. Share price of Geregu Power Plc had settled at N1,000 for months, the best it had reached since it was listed in Oct 2022 at N100.
The latest rally on the utility company’s share lifted its market price to N1,150 after two successive uptrends recorded in the equities market this week. Investors in the local equities market have rerated the company’s market value as it gained fresh popularity.
Geregu Power’s 2.5 billion shares outstanding in the stock market has increased to N2.875 trillion. In its earnings forecast, Geregu Power projected N11 billion post tax profit in the fourth quarter of 2024, according to its regulatory filing.
The power generating company told the Nigerian Exchange that it expects revenue to reach N61.46 billion between Oct and December 2024. Its management forecasted more than N6 billion as an impairment loss on the company’s financial assets in the period.
Its operating profit is expected to settle at N17.17 billion in the period amidst rising borrowings. Due to higher interest payments, Geregu Power estimated that the company’s net finance costs would reach N350 million in the last three months of year 2024.
The company expects N16.825 billion as post tax profit in the period. #Geregu Power Sets for Fresh Uptrend, Hits All-Time High
