Geregu Power Plc, mainly owned by Nigerian billionaire Femi Otedola, showed exceptional endurance in the 2023 fiscal year, according to their newly issued annual report and financial records.
During the review period, the company’s revenue exceeded $90-million, marking a significant milestone in its operations. According to the data in its annual report, Geregu Power’s revenue increased by 74.1 percent, rising from N47.62 billion ($53.3 million) in 2022 to N82.91 billion ($92.8 million) by the end of 2023.
This double-digit increase in revenue was primarily driven by increased energy sales and capacity charges, which increased to N51.8 billion ($58 million) and N31.1 billion ($34.81 million), respectively, propelling the company’s earnings to new heights and cementing its position as one of Nigeria’s most profitable entities.
Geregu Power’s operating profit increased by 110 percent from N14.82 billion ($16.6 million) in 2022 to N31.14 billion ($34.85 million) at the end of the group’s fiscal year in 2023, owing to a jump in revenue and the company’s recent cost-cutting strategies. Similarly, its profit after tax increased significantly, rising from N10.16 billion ($11.37 million) to N16.05 billion ($17.96 million) over the same time.
The exceptional end-of-year profits translated into spectacular earnings per share of N6.42 ($0.00718) for the group’s 2.5 billion outstanding shares, representing a considerable rise over the previous year’s earnings per share of N4.07 ($0.00455).
The company’s board approved a dividend payment of N8 ($0.174) per share to shareholders, set to be distributed on March 28, 2024. This dividend payout is expected to generate significant returns for Femi Otedola, who owns a dominant 78.6 percent ownership in the biggest power producing firm, or 1,965,979,283 shares.
Geregu Power has cemented its place as a prominent player in Nigeria’s energy generation landscape, owning three natural gas-fired power stations with a combined capacity of 435 megawatts, which contribute considerably to the country’s total energy generation capacity.
The Otedola-led power firm aims to increase its capacity from 435 to 1,300 megawatts during the next two years. This demonstrates the company’s commitment to meeting Nigeria’s energy needs while also intending to increase earnings and revenue through continued growth in the power sector.
