Geregu power reports 45.5% growth in PAT to N20.5bn
By Philemon Adedeji
A leading power generation company, Geregu power plc, has reported its audited financial statements for the period ended December 31, 2021.
The report stated that Profit After Tax which increased impressively by 45.5 per cent to N20.5 billion in full year 2021 from N14.125 billion recorded in full year 2020.
From the data submitted to the Nigerian Exchange Limited (NGX), the group Profit Before Tax recorded gained a 42.9 per cent to N29.5 billion in 12 months of 2021 from N20.648 billion in 12 months of 2020.
From the profit and loss figures, the group revenue rose significantly to N70.9 billion in full year 2021 from N53.6 billion recorded in full year 2020, reflecting a marginal difference of 32.2 per cent.
Due to increase in raw material, the cost of sale increased by 22 per cent to N37.6 billion in 12 months of 2021 from N30.8 billion achieved in 12 months of 2020.
However, gross profit reported by the group appreciated by 46 per cent from N22.8 billion accounted in 2020 to N33.342 billion accounted in 2021. As operating profit gained a 54.5 per cent to N29.523 billion in 2021 from N19.103 billion achieved in 2020.
Earnings per share recorded for the period under review grew by 45.5 per cent to N2055.04 in 2021 from N1412.54 in 2020.
Geregu Power, a leading power generation company (GenCo) in Nigeria, is the first GenCo to be listed on the NGX main board, a listing segment for well-established companies with demonstrable records of accomplishments. The listing of Geregu’s shares has added N250 billion to the market capitalisation of NGX, further boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation.
Reacting to the development, the Chairman, Geregu Power, Mr. Femi Otedola, stated that the listing of the company was the actualization of a vision to bring world-class standards in governance, sustainability, and business processes to the company and the Nigerian electricity sector.
He added that listing on the Main Board of NGX would ensure that the long-term growth of the company is assured and its benefits would be passed on to its shareholders.
The Chief Executive officer of NGX, Mr. Temi Popoola, in a statement obtained from the Exchange said, “Today’s listing is a promising development in the country’s power sector and we are delighted to welcome Geregu Power Plc to the Exchange. Having Geregu listed in our market is proof of NGX’s commitment to building a robust and inclusive market and creating avenues for sustainable investment. This listing will enhance liquidity for Geregu, increase its visibility among global investors, elevate its value and boost transparency, as our marketplace is a sterling platform for raising capital and enabling sustainable growth for national development.”
However, the Chief Executive Officer, Geregu Power Plc, Akin Akinfemiwa, noted that the capital raise would significantly support the company’s capital investments.
“The resounding success of our debut bond offer demonstrates implicit confidence in our business by the investment community in our quest to increase capacity and contribute our own quota to the Nigerian Electricity Supply Industry (NESI).
“It would help us in the attainment of our long-term corporate goals; market leadership, innovation, and commitment to the highest standards of environmental, social, and corporate governance,” he added.
Some stockbrokers have described the listing by the introduction of Geregu Power Plc on the main board of The Exchange on Wednesday, 5 October 2022 as a good step that will increase the efficiency and capital base of the company.
However, the company, promoted by Mr. Femi Otedola, is drawing caution from market operators considering the fact that Forte Oil, which was earlier sponsored by him failed to meet investors’ expectations as the oil firm has been delisted from the market.
