Geregu Power targets N15.2bn revenue for Q3 2023

Geregu Power Plc said it has projected to generate N15.135 billion in revenue for the third quarter ending September 2023.

This is contained in its Q3 2023 earnings forecast released via the Nigerian Exchange (NGX).

The power firm is also projected to rake in N7.696 billion in gross profits. Targets for a Profit Before and After Tax were put at N5.185 billion and N3.670 billion, respectively. While the projection for operating profits stood at N5.966 billion, forecasted taxation for the period was put at N1.515 billion.

Geregu Power Plc’s audited accounts for the year ended December 31st, 2022, showed revenues of N47.6 billion compared to N70.9 billion for the same period in 2021.

The company also reported a pre-tax profit of N10.1 billion representing a 50.7 per cent drop in profits year on year. Earnings per share also fell from N8.22 to N4.07 per share.

The company explained that the reason for the drop in revenues (which also affected profits) during the year was due to the challenges in the power sector. During the year, gas shortages resulted in several force majors forcing the national grid to collapse frequently.

“As a result of a nationwide force majeure (FM) declared by Shell Petroleum Development Company Limited on the Trans-Forcados pipeline and its consequent effects on the Forcados oil terminal, gas supplies to the plant by Its primary gas supplier ceased from 17th of July 2022.

“The maintenance works on the pipelines were however completed at the end of November 2022 and gas supplies and normal operations have since then resumed.”

Despite the drop in revenues, the company did report a higher gross profit margin of 48.5 per cent compared to 46.9 per cent in the same period in 2021.

This is despite a higher inflationary environment that also saw energy input prices rise. The company also managed to keep operating costs (excluding payroll costs) flat at N4.7 billion, nearly the same as in 2021.

During the year, the company incurred a finance cost of N7.3 billion resulting from its N40 billion bond issuance.

However, impressive treasury management of the loan helped the company also earn N7.6 billion in finance income leading to a net finance income of N348.1 million.