…as nine-month revenue drops by 80.7%
Geregu Power Plc has extended its expected timeline for restoring full electricity generation capacity to December 2026, as prolonged transformer failures pushed its revenue down by 80.71 per cent in the nine months ended September 30.
The electricity generation company disclosed the development in its unaudited financial statements filed with the Nigerian Exchange Limited (NGX) on Friday, October 30, 2026.
According to the report, revenue declined to ₦25.35 billion from ₦131.47 billion recorded during the corresponding period of 2025, reflecting the financial impact of disruptions to its generating operations.
Geregu attributed the decline largely to the breakdown of three critical transformers, which affected its ability to generate electricity and earn revenue from energy sales and available generating capacity.
The company explained that the equipment failures involved low-voltage windings, high-voltage bushings and other technical problems that required extensive repairs.
One of the affected transformers was repaired and reconnected to the national grid in August, while the remaining two were still undergoing repairs at the time of the latest disclosure.
The company now expects the two transformers to return to the plant in November and December, respectively, to enable the restoration of its full generation capacity.
The revised timeline comes after earlier expectations that the remaining generating units would return to service in September and October.
The prolonged disruption significantly affected the company’s financial performance.
Revenue from electricity sales declined to ₦16.90 billion from ₦85.52 billion in the corresponding period of 2025, while capacity charge income dropped to ₦8.46 billion from ₦45.94 billion.
The reduction in operating activity also affected profitability, with gross profit falling to ₦8.22 billion from ₦53 billion.
Profit before tax declined by 79.85 per cent to ₦7.55 billion, compared with ₦37.46 billion recorded in the first nine months of 2025.
Similarly, profit after tax fell by 76.54 per cent to ₦5.89 billion from ₦25.10 billion, while earnings per share dropped from ₦10.04 to ₦2.36.
The results further showed that administrative expenses increased to ₦17.08 billion from ₦7.34 billion, adding to the financial pressure created by the reduction in electricity generation.
Despite the difficult nine-month performance, Geregu recorded a pre-tax profit of ₦3.98 billion in the third quarter alone, compared with ₦11.15 billion in the corresponding quarter of 2025.
The company also disclosed an ongoing reconciliation with the Nigerian Independent System Operator (NISO) concerning 18,704.33 megawatt-hours of electricity recorded across August and September but not captured by the Nigerian Bulk Electricity Trading Plc (NBET).
Geregu indicated that the affected energy would be recognised following the reconciliation process.
To address the equipment challenges, the company said its board had ordered three new transformers from Siemens Energy as part of measures to strengthen plant reliability and reduce the risk of future generation disruptions.
The procurement covers the generating units designated GT11, GT12 and GT13 at its power facility in Ajaokuta, Kogi State.
The latest financial results underscore the consequences of prolonged equipment failures for electricity generation companies, particularly in a power market where operational reliability determines both available supply and revenue performance.
For Geregu, the anticipated return of the remaining transformers in November and December will be critical to restoring generation output and improving its financial performance.
However, the actual recovery in electricity production will depend on the successful completion of repairs, reconnection to the grid and the operational performance of the restored equipment.
