Shareholders of Geregu Power Plc have approved the company’s declared dividend of N20 billion.
The approval of the dividend which was given at the company’s 12th Annual General Meeting (AGM) in Lagos translates into N8.00 per Ordinary Share of 50 kobo each.
According to the company, the dividend will be distributed to the eligible shareholders whose names appear in the Register of Members on February 17, 2023, after the deduction of applicable taxes.
Addressing shareholders at the AGM, the Chairman of, the Board of Directors of Geregu Power Plc, Mr. Femi Otedola said that the dividend is a testament to the company’s solid financial position and its dedication to delivering shareholders value.
This dividend declaration is not just a distribution of profits, it is a signal of our confidence in the company’s future and our commitment to sharing our success with those who have invested in us.
A watershed moment for the Nigerian power sector
Otedola noted that the year 2023 marked a watershed moment for the Nigerian power sector, characterized by significant legislative pronouncements and operational challenges.
He stated that the enactment of the Electricity Act. 2023 by President Tinubu on June 8. 2023, was a historic step in reshaping the landscape of Nigeria’s energy sector.
He added that the comprehensive legislation aimed to address long-standing issues in the Nigerian Electricity Supply Industry (NESI) setting a course for reform and growth.
- “Central to the Act’s objectives was the decentralization of electricity supply to the states and private investors and integration of renewable energy into Nigeria’s energy mix.
- This initiative aligned perfectly with global trends toward sustainable energy solutions and was crucial in attracting the necessary investment to revitalize the industry.
- The Act’s focus on introducing new policies and regulatory measures to overcome current challenges and attract private sector investment across the NESI value chain is instrumental in steering the industry towards a self-sustaining profitable and efficient future.
- In response to these regulatory changes, Geregu Power Plc took significant steps to align with these new standards and expectations.
- A milestone achievement in this regard was our attainment of ISO 9001 and 14001 certifications from the Standard Organisation of Nigeria,” he said.
Incorporating renewable energy sources
Otedola noted that in 2014, Geregu Power aimed to align its business operations with the global trend toward affordable clean, and efficient energy systems.
This according to him involves incorporating renewable energy sources into its power generation portfolio, a move that not only aligns with the company’s sustainability goals but also positions it to capitalize on the emerging market opportunities.
Financial performance
The Chief Executive Officer of Geregu Power Plc, Mr. Akin Akinfemiwa speaking on the financial performance said despite operational challenges, the company’s rescilent business model generated a total of 1,738,467.50 Mwh compared to 1,602,382.20 Mwh in 2022.
He added that the transmitted energy to the National grid stood at 1,712,968 Mwh compared to 1,583,419 Mwh in 2022.
Akinfemiwa said the company’s revenue recorded a substantial increase, surging to N82.9 billion from N47.6 billion in the corresponding year of 2022 largely driven by a 9% increase in Mwh energy sent out, 52% increase in energy tariff and a 59% increase for energy capacity charge during the period.
Gross profit increased by 84% to N42.7 billion compared to N23.1 billion recorded in the corresponding year of 2022. Profit before tax increased by 61% to N24.4 billion compared to N15.1 billion in 2022 as a result of an increase in revenues largely driven by the effect of exchange rates on wholesale energy and capacity tariffs.
What the shareholders said
Reacting to the development, Mr Patrick Ajudua, the President of the New Dimension Shareholders Association commended the company for the sterling performance adding that the shareholders are excited about the dividend payout which was above its Earnings per share (EPS).
- “It’s on record that Geregu Power Plc is always paying dividends above EPS. This year despite an EPS of 6.25k, the company is paying N8.00 as a dividend.
- It’s the only power company to hit the N2.5 trillion mark in market capitalization after it listed in October 2022 for N250 billion.
- It is also the first company to submit the audited financial statement to the Stock exchange,” he said.
The coordinator of the Independent Shareholders Association of Nigeria (ISAN) Mr. Moses Igbrude also lauded the company’s performance during the year under review.
- Igburude said: “Our country cannot grow without power infrastructure; you have the key to the economy and you are making the shareholders proud. Your corporate governance is looking up, we want you to sustain it and improve.
- We are also excited about the certification you received from the Standard Organization of Nigeria; it will go a long way to bring more investment to the company.