Femi Otedola’s fortunes have skyrocketed in recent days, with the market value of his interest in Geregu Power Plc, a prominent participant in Nigeria’s power industry, increasing by more than N131.39 billion in only three days.
Otedola, one of Nigeria’s wealthiest men, has seen the market value of his Geregu Power share increase by N131.39 billion in the last three days, owing to revived investor interest in the power-generation company. This spike follows Geregu Power’s strong financial performance in the first nine months of its fiscal year 2023.
Geregu Power, which operates three natural gas-fired power plants totaling 435 megawatts, has established itself as a prominent player in Nigeria’s energy producing sector, accounting for 10% of the country’s total power generation capacity.
According to the data in Geregu Power’s recently issued audited financial statement, Otedola, through his company, Amperion Power Distribution Company, owns 95.56 percent of Geregu Power, or 2,388,921,063 shares.
The market value of Otedola’s 95.56 percent stake in Geregu Power has increased by N131.39 billion in recent days, rising from N752.51 billion on Oct. 23 to N883.9 billion at the time of this report’s drafting, as shares in the leading power company increased by 17.4 percent, rising from N315 to N370.
The recent 17.4 percent gain in Geregu Power’s share price, which increased Otedola’s holding by N131.39 billion in just three days, is attributable to investors’ positive reaction to the company’s strong financial performance in the first nine months of the fiscal year 2023.
Geregu Power’s unaudited interim financial report, released on Wednesday, Oct. 18, shows significant rise in both sales and earnings. Revenue increased by 43 percent, rising from N39 billion in the same period in 9M 2022 to a healthy N55.75 billion in 9M 2023.
The company has succeeded across all areas under Otedola’s leadership, with revenue from energy sales jumping from N24.78 billion to N34.8 billion. During the review period, capacity charges increased from N14.23 billion to N20.95 billion.
This remarkable sales growth resulted in a significant 52-percent increase in gross profit, which reached N28.89 billion at the end of the first nine months of 2023, up from N18.95 billion in 9M 2022.
The increase in Geregu Power’s share price and Femi Otedola’s expanding fortune highlight the company’s durability and capacity to significantly contribute to Nigeria’s power production industry, cementing Otedola’s position as one of the continent’s most rich businessmen.
