Table of Contents
Key Points
- Geregu Power aims for Q1 2025 revenue of N60.9 billion ($40 million), building on its robust 2024 financial performance.
- Geregu projects Q4 operating cash flow at N24.45 billion ($15.7 million), reflecting financial efficiency and solid energy receipts.
- Nine-month profit surged to N24.19 billion ($15.1 million), driven by a 102% revenue increase and higher energy and capacity charges.
Geregu Power Plc, one of Africa's leading electricity generators, is poised for a strong start in 2025, targeting revenue exceeding N60.9 billion ($40 million) for the first quarter.
This ambitious projection builds on its robust operational and financial performance in 2024, including an anticipated revenue of $40.3 million (N61.46 billion) for the fourth quarter, as outlined in its previous earnings forecast.
Under Nigerian billionaire Femi Otedola, who also chairs FBN Holdings, Nigeria’s oldest banking group, Geregu Power expects Q4 direct costs to rise to N35.9 billion ($23 million).
Despite these costs, profits are projected to grow to N16.9 billion ($10.8 million), aligning closely with its previous forecast of N16.8 billion ($10.78 million) for the same period.
Cash flow and operational efficiency
Geregu Power anticipates generating N17.08 billion ($10.96 million) in cash receipts from energy and capacity charges in Q4, with operating cash flow before working capital changes expected at N24.45 billion ($15.7 million). The company projects total cash holdings of N38.32 billion ($24.6 million), demonstrating its financial prudence.
These forecasts underline Geregu’s position as a model of transparency and corporate governance. The company recently received the “Most Compliant Listed Company” award at the NGX Made of Africa Awards, further solidifying its reputation.
Legacy of excellence
Founded in 2006, Geregu Power began supplying electricity to Nigeria's national grid in 2007, with its 435-megawatt (MW) capacity plant playing a critical role in addressing the country’s energy needs.
In 2013, Femi Otedola’s Amperion Power Distribution Company Limited, in partnership with Calvados Global Services Limited and China’s State Grid Shanghai Municipal Electric Power Company, acquired Geregu Power.
Under Otedola’s leadership, Geregu underwent a $94 million overhaul in 2014, enhancing its capacity to 435MW and achieving full utilization. By 2021, Otedola secured full ownership of the company.
In October 2022, Geregu Power became the first electricity generation firm to list on the NGX, marking a milestone in Nigeria's power sector.
Nine-month financial highlights for 2024
Geregu Power's financial performance for the nine months ending September 2024 underscores its dominance in Nigeria’s energy market. Profit more than doubled to N24.19 billion ($15.1 million), compared to N11.36 billion ($7.2 million) during the same period in 2023.
Revenue surged by 102 percent, reaching N112.58 billion ($70.2 million) from N55.75 billion ($34.5 million) a year earlier. This growth was driven by a 105 percent increase in energy sold, which generated N71.4 billion ($44.5 million), and a 97 percent rise in capacity charges, which climbed to N41.2 billion ($25.7 million).
Future outlook
As Geregu Power aims for $40 million in Q1 2025 revenue, its commitment to efficiency, transparency, and financial growth solidifies its role in Nigeria’s power sector.
Backed by consistent investments and strong leadership under Otedola, Geregu is well-positioned to maintain its upward momentum and strengthen its reputation as a leader in Africa's energy industry.
