Geregu Power Plc, a significant player in Nigeria’s electricity sector led by billionaire entrepreneur Femi Otedola, expects to generate N31.24 billion in revenue in the first quarter of 2024.
This bold financial estimate, detailed in the company’s newly announced profits forecast, represents a significant increase above the N14.23 billion earned in the same period in 2023.
Despite the challenges in its operating environment, the Otedola-led power giant expects direct costs of N16.76 billion during the first quarter of 2024, a significant increase from the N7.26 billion recorded in the same period the previous year — despite the challenges in its operating environment, the company managed to post a profit of N3.6 billion between January and March 2023.
Geregu Power expects a gross profit of N14.48 billion in the first quarter of 2024, according to the most recent earnings forecast. Furthermore, the company is aiming for a profit after tax of N5.56 billion, indicating its commitment to long-term growth in the dynamic power sector.
The company’s financial performance in 2023 laid the groundwork for its present projections. Revenue increased by 43 percent in the first nine months of 2023, from N39 billion in 9M 2022 to an outstanding N55.75 billion in 9M 2023.
Revenue from energy sales surged from N24.78 billion to N34.8 billion under the leadership of the Nigerian billionaire businessman, while capacity charges increased from N14.23 billion to N20.95 billion.
Geregu Power’s role in Nigeria’s power industry is highlighted by its operation of Geregu I, a 435MW gas-fired power plant that contributes significantly to the country’s total electricity generation—the plant’s recent significant overhaul in the third quarter of 2023 played a pivotal role in the company’s impressive financial performance.
Geregu Power is in the process of acquiring Geregu II as part of its strategic expansion plan, which will increase its overall generating capacity by an estimated 434MW — it reflects the company’s unwavering commitment to meeting Nigeria’s escalating energy demands and fostering continuous growth in the power sector.
