Geregu Power Stops Moving at 52-Week High despite Earnings Records
Investors on the Nigerian Exchange (NGX) interest in Geregu Power Plc has fizzle out even after its impressive earnings result for the first half of financial year 2024.
The company has also released stupendously impressive earnings target for the last three months in 2024 financial calendar with expectation that profit would settle at more than N11 billion in Q4.
In the equities market, the power generating company share price peaked at N1,000 and then it stopped moving, suggesting lack of liquidity or the shares are closely held in few hands.
Geregu Power Plc came to the Nigerian Exchange in the latter part of 2022. In not so long, the power generating company experienced huge market repricing that lifted the company share price from N100 to N1,000.
Analysts said the share price repricing has been pattern for newly listed companies, driven by investors, market sentiment rather than fundamentals.
But since Geregu Plc hit its 52 week high or the best price level the company ever achieved in the local market, it has stopped breathing totally. Geregu Power has however shown earnings capability on the back of strong capital spending.
Earnings Forecast
Geregu Power Plc has a target to achieve N11 billion post tax profit in the first quarter of 2024, according to its regulatory filing submitted on the Nigerian Exchange (NGX) platform on Monday.
The power generating company told the Nigerian Exchange that it expects revenue to reach N61.46 billion between Oct and December 2024. Management forecasted more than N6 billion as impairment loss on the company’s financial assets in the period.
Its operating profit is expected to print at N17.17 billion amidst rising borrowings. Due to higher interest payments, Geregu Power estimated that the company’s net finance costs would settled at N350 million.
Profit after tax is expected to reach N16.825 billion, according to its regulatory filing on the Nigerian Exchange. Despite its positive expectation, Geregu Plc remained flat at N1000 per share in the equities market due to thin trading. #Geregu Power Stops Moving at 52-Week High despite Earnings Records
