Nigerian Billionaire Otedola-led Energy Company Aims for $23.9M Revenue in Q2 2024

Geregu Power Plc, a significant player in Nigeria’s power industry owned by Nigerian billionaire Femi Otedola, has announced high financial expectations for the second quarter of 2024. Geregu Power’s earnings outlook estimates sales at N38.17 billion ($23.94 million).

This prediction represents a significant 22.2% rise from the N31.24 billion ($19.59 million) revenue target for the first quarter of 2024. Additionally, it is an 86 percent increase from the previous year’s second quarter sales of N20.43 billion ($12.8 million).

Geregu Power forecasts direct costs to total N17.37 billion ($21.2 million) in the second quarter of 2024, a considerable increase from the previous fiscal year’s N9.29 billion ($5.82 million).

According to the most recent earnings prediction, the power generation company expects a gross profit of N20.79 billion ($13.04 million) in the second quarter of 2024.

Furthermore, the company expects to generate a profit after tax of N9.22 billion ($5.78 million) during this period, more than tripling the N4.51 billion ($2.83 million) profit generated in the same quarter of 2023. This demonstrates Geregu electricity’s determination to maintain expansion in Nigeria’s dynamic electricity market.

Geregu Power’s significance in the country’s power landscape is highlighted by the operation of Geregu I, a 435MW gas-fired power plant that makes a major contribution to total electricity generation.

The recent extensive upgrade of the plant, which resulted in electricity generation ranging from 260MW to 270MW, has played a critical part in the company’s recent remarkable financial success.

The firm’s success in 2023 provided a solid foundation for its present predictions. Geregu Power’s annual report shows a 74.1 percent increase in revenue, from N47.62 billion ($29.9 million) in 2022 to N82.91 billion ($52 million) by the end of 2023.

This was driven by increasing energy sales and capacity charges, which totaled N51.8 billion ($32.5 million) and N31.1 billion ($19.5 million), respectively. This strengthens Geregu Power’s status as one of Nigeria’s most lucrative power companies.



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