Market Valuation: Geregu Power Rises Close to N1Trn
In terms of market valuation, Geregu Power Plc’s weight has increased and there is a possibility that the company could be joining the 13-digit gang on the Nigerian Exchange soon.
Data from the Exchange shows that Airtel Africa Plc remains the Lord of the Ring with a market capitalisation of N6.727 trillion, followed by Dangote Cement and MTN Nigeria Plc.
Dangote Cement stock market valuation printed at N5.589 trillion, while MTN Nigeria Plc was worth N4.996 trillion on Friday. Other members of 13-digit gang include BUA Foods, BUA Cements, GTCO, and Zenith Bank.
Traded at N399 per share, Geregu Power Plc’s market valuation has advanced to N997.5 billion after gaining less than 1% last week. The company listed 2.5 billion ordinary shares at N100 in Oct 2022.
In its 9 months of financial year 2023 earnings release, Geregu Power Plc posts more than N11.359 billion as profit after tax. This translated to a 13.26% year-on-year growth from N10.029 billion that the company delivered in the comparable period in 2022.
Detail from the company’s regulatory filing showed that revenue surged N55.747 billion, a significant increase of more than 42% year-on-year from N39.03 billion in the comparable period in 2022.
Following an increase in activity levels, Geregu Power Plc also recorded a surge in costs of sales amidst pressures on price levels in the economy. Details from its financials showed that costs of sales rose by 33.91%, from N20.057 billion to N26.86 billion.
The company’s performance was reduced by the absence of other income lines, exactly a year after it reported N11.444 billion at the end of nine months of operations in 2022.
Dragging the company’s performance, impairment in financial assets widened to NN3.127 billion at the end of the nine months in 2023, versus N162 million reported a year ago.
The power company’s administrative overheard spending also surged more than double in the period, from N2.766 billion in 9 months of the financial year 2022 to N5.871 billion 12 months after.
Though operating profit remains relatively healthy when compared with the prior year’s result, negative cost movement impacted the company’s efforts to ramp up revenue.
At the end of the nine months, Geregu Power reported N19.887 billion, more than 24% above N16.028 billion reported a year ago. Net finance surged moderately despite a much higher borrowing rate.
The company reduced the impacts of higher costs of borrowings with interest income on its naira assets in terms of finance income. Its result showed that finance costs surged to N8.849 billion from N4.225 billion in 9 months of 2022.
However, the company also ramped up income from its short-term naira assets. Geregu Power reported that its finance income rose to N6.088 billion in 12 months from N2.155 billion in the equivalent period in 2022.
Its profit before tax obligation surged from N13.957 billion at the end of 9 months of financial year 2022 to N17.486 billion exactly 12 months after as the company strives to boost its investors’ wealth Nigeria Eurobond Slumps after CBN Resumes OMO Auction