Geregu Power Plc, a renowned power generation firm led by Nigerian billionaire Femi Otedola, reported another strong financial performance in the first half of 2024 (H1 2024).
Building on a good Q1 2024, the company’s half-year revenue reached $51.9 million, reinforcing its position as a key player in the country’s power industry.
Geregu Power’s first-half 2024 revenue increased 132.5 percent year on year, to N80.7 billion ($51.9 million) from N34.7 billion ($22.4 million) in H1 2023. This considerable increase corresponds to an increase in both energy sold and capacity fee.
Total energy sales increased to N50.8 billion ($32.7 million), up from N21.7 billion ($14 million) the previous year, while capacity charges increased to N29.8 billion ($19.2 million) from N13 billion ($8.4 million).
More impressively, profit growth surpassed revenue growth. Geregu Power’s earnings increased 148.5 percent year on year, to N20.01 billion ($12.8 million) in H1 2024 from N8.05 billion ($5.1 million) in H1 2023.
This accomplishment demonstrates the efficiency of the group’s cost-cutting efforts and solidifies Geregu Power’s position among Nigeria’s most profitable enterprises.
Geregu Power, established in 2006, began producing energy to the national grid in 2007. In 2013, Otedola’s Amperion Power Distribution Company Limited led a consortium that bought the company.
This cooperation comprises Calvados Global Services Limited and State Grid Shanghai Municipal Electric Power Company, the world’s largest utility.
Under Otedola’s leadership, Amperion spent $94 million on a 2014 plant upgrade, increasing capacity from 414MW to 435MW. Otedola’s firm gradually grew its share in Geregu Power, eventually acquiring full ownership in 2021.
Today, as a publicly traded firm, the leading Nigerian businessman, worth $1.9 billion (as of April 18, 2024), owns 78.05 percent of the leading power producing company.
Geregu Power’s outstanding financial performance is reflected in its expanding total assets, which increased to N207.7 billion ($133.9 million) as of June 30, 2024, up from N182.04 billion ($117.4 million) as of December 31, 2023.
Despite a dividend payout of N20 billion ($13 million), retained earnings remained stable at N43.9 billion ($28.3 million) for the fiscal year ending December 31, 2023.
In May, Geregu Power signed an MOU with Siemens Energy to increase its power producing capacity from 435MW to 1,200MW.
This collaboration is aimed at developing sustainable and efficient power generating solutions at Geregu Power’s current plant, prolonging asset life, and promoting the expansion of Nigeria’s Electricity Supply Industry (NESI).
Geregu Power is also in position to purchase one of the five power plants being offered by the Nigerian government. The National Integrated Power Project plants, including the 434-megawatt Geregu II gas-fired plant, are valued at around $1.15 billion.
The group’s outstanding financial performance and expansion plans cement its position as a market leader in Nigeria’s electricity sector. The engagement with Siemens and prospective acquisition demonstrate the company’s commitment to increasing Nigeria’s electricity producing capacity.
