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In a remarkable milestone, Geregu Power Plc has achieved a groundbreaking market capitalization, breaching the N1 trillion mark for the first time and securing its position among the prestigious SWOOT group. The company, the sole power entity listed on the NGX, closed the trading day on January 15, 2024, with an impressive 7.52% appreciation, reaching a share price of N429. This surge propelled its market capitalization to an astounding N1.07 trillion.
This significant achievement is not only a testament to Geregu Power’s robust financial performance but also reflects the resilience and dynamism of the energy sector in the Nigerian market. The visionary leadership of major shareholder Femi Otedola has played a pivotal role in steering the company to new heights.
Femi Otedola’s resurgence as a billionaire, attributed to the appreciation of his shares in FBN Holdings and Zenith Bank, adds another layer of success to the narrative. His strategic investment decisions have not only bolstered Geregu Power’s financial standing but have also contributed to his personal financial gains.
Over the past 365 days, Geregu Power’s shares have witnessed an extraordinary appreciation of 233%, soaring from N149 on January 16, 2023, to N429 on January 15, 2024. This remarkable growth underscores the company’s attractiveness to investors and the confidence they place in its future prospects.
Understanding the company’s journey sheds light on its evolution. Femi-Otedola’s Amperion Power Distribution Company acquired an 80% shareholding in the 435 MW Geregu I Power Plant in 2013, paving the way for the creation of Geregu Power Limited. The Federal Government retained a 20% stake in the power plant. Subsequently, in October 2022, the company transitioned to being publicly listed on the NGX, officially becoming Geregu Power Plc.
In the financial realm, the company’s performance in the first three quarters of 2023 is noteworthy. It recorded a revenue of N55.7 billion, marking a substantial 43% year-on-year gain from the corresponding period in 2022. The net income during this period reached N11.4 billion, reflecting a commendable 13% year-on-year increase from 2022. These robust financial figures indicate Geregu Power’s efficiency and profitability in the competitive energy sector.
However, a closer look at the company’s equity reveals a decline of 18% from N49.10 billion as of December 31, 2022, to N40.46 billion on September 30, 2023. This decline, while notable, is likely to be addressed by the anticipated increase in equity projected for the fiscal year 2023. This increase is expected due to Femi Otedola’s strategic decision to sell shares, reducing his shareholding in the company from 96% to approximately 80%.
As we await the comprehensive financial statements for the fiscal year 2023, the strategic moves and financial data outlined in this narrative position Geregu Power Plc as a formidable force in the Nigerian energy sector. The company’s historic crossing of the N1 trillion market capitalization threshold and its continued commitment to growth and financial stability underscore its significance in the Nigerian business landscape.
Source: Naira Metrics