Quick Read: Geregu Power Plc reported a stellar 2024 financial performance, with revenue hitting N137 billion, a 65% increase from 2023. Profit After Tax (PAT) surged by 71% to N27.4 billion, the highest in five years. The company proposed a dividend of N8.50 per share, totaling N21.25 billion, and invested N42 billion in plant upgrades. Despite impairment charges, Geregu Power demonstrated strong growth, cost efficiency, and shareholder value.
Geregu Power Plc, a leading power generation company listed on the Nigerian Exchange Limited (NGX), has announced its audited financial results for the year ended December 31, 2024. The company delivered an outstanding performance, with significant growth in revenue, profits, and shareholder returns. Here’s a breakdown of the key highlights:
Record-Breaking Profitability
Geregu Power reported a Profit Before Tax (PBT) of N41 billion in 2024, marking a 69% increase from the N24 billion recorded in 2023. Similarly, the company’s Profit After Tax (PAT) surged to N27.4 billion, representing a 71% growth compared to the N16 billion reported in the previous year.
This remarkable performance represents the highest profit declared by the company since its listing on the NGX and over the past five years.
Revenue Growth Driven by Energy Sales and Capacity Charges
The company’s revenue soared to N137.13 billion in 2024, a 65.3% increase from the N82.91 billion achieved in 2023. This growth was fueled by:
- Energy Sales: N87.5 billion (a 69% increase from N51.8 billion in 2023).
- Capacity Charges: N49.66 billion (a 59.6% rise from N31.11 billion in 2023).
Impairment Charges and Potential for Higher Profits
Despite the impressive results, Geregu Power recorded an impairment charge of N9.45 billion in 2024, bringing its total impairment on receivables from the Nigerian Bulk Electricity Trading (NBET) to N16.2 billion. This represents about 12% of the outstanding sum at year-end.
Analysts suggest that if the impairment charges were reduced to the peer average of 6%, the company’s profit could have reached N50 billion, highlighting the potential for even stronger performance in the future.
Dividend Payout and Shareholder Returns
In line with its robust financial performance, Geregu Power’s Board proposed a final dividend of N8.50 per ordinary share, amounting to N21.25 billion. This represents an increase from the N20 billion paid to shareholders in 2023, underscoring the company’s commitment to delivering value to its investors.
Cost Efficiency and Asset Growth
Geregu Power demonstrated improved cost management, with operating expenses declining by 13% to N9.5 billion in 2024, down from N13 billion in 2023.
The company’s total assets also grew significantly, rising by 33.7% to N243.5 billion in 2024, compared to N182 billion in 2023. Key drivers of this growth include:
- Non-Current Assets: Increased to N72.6 billion (up from N36.3 billion in 2023), driven by investments in property, plants, and equipment.
- Current Assets: Rose to N170.8 billion (from N145.6 billion in 2023), with trade and receivables accounting for N121.8 billion.
The company also invested N42 billion in a major overhaul of its plants, further strengthening its operational capacity.
Debt Management and Borrowings
Geregu Power repaid N17.6 billion in bonds and external borrowings during the year while securing an additional N9.7 billion in new borrowings. This balanced approach to debt management reflects the company’s strategic financial planning.
Stock Performance and Market Confidence
As of January 31, 2025, Geregu Power’s stock price closed at N1,150 per share, reflecting investor confidence in the company’s growth trajectory.
Consistency in Financial Reporting
Geregu Power has maintained a reputation for timely and transparent financial reporting. The company is typically one of the first to file its audited financial statements, consistently publishing results in January each year since its listing on the NGX.
Conclusion
Geregu Power’s 2024 financial results underscore its position as a leading player in Nigeria’s power sector. With record-breaking revenue, significant profit growth, and a commitment to shareholder returns, the company is well-positioned for sustained success in the years ahead.
Stay tuned for more updates on Geregu Power’s performance and strategic initiatives!
