Geregu Power Steadies at N2.5trn despite Fresh Deal with Siemens
Geregu Power Plc retained its N2.5 trillion market valuation months after the stock price peaked at N1000. The company came to the local bourse by way of introduction at N100 per share in Oct 2022, with 2.5 billion shares outstanding.
Nothing appears to be moving the stock price – its earnings report and the deal failed to nudge the price nowhere.
For months, its unit price has steadied despite its latest earnings performance, which the market has discounted in its stock pricing. According to an official notice, Siemens Energy and Geregu Power PLC, the leading provider of power generation solutions in Nigeria, signed a Memorandum of Understanding to collaboratively develop solutions for capacity expansion.
The Geregu 1 power plant served as the focal point of the capital project, which was created to ensure reliable, efficient, and sustainable power generation while preserving the longevity of assets intended to support the expansion and sustainability of the Nigeria Electricity Supply Industry (NESI).
According to the company, the agreement was celebrated on Wednesday, May 29, 2024, in Berlin. Various solutions were discussed and suggested, including upgrading the Geregu 1 Power plant from its current 435MW capacity to 500MW.
The deal includes the establishment of a combined cycle operations to generate an additional 200MW and new builds using lower emission turbines with an added capacity of 500MW to birth Geregu 3, bringing Geregu Power PLC’s overall nameplate capacity to 1200MW.
“These initiatives are targeted at higher power output, improved efficiency, lower emissions, higher flexibility, a longer equipment life span, and maximizing shareholder value through increased earnings,” the company said.
Mr. Femi Otedola, Chairman of the Board of Directors of Geregu Power Plc, led the team, while Mr. Dietmar Siersdorfer, Managing Director, Middle East and Africa, led the Siemens Energy Team. #Geregu Power Steadies at N2.5trn despite Fresh Deal with Siemens
