Olurotimi Otedola, the founder of the Afrinero music band and the brother of Nigerian billionaire Femi Otedola, has sold shares in Geregu Power Plc worth N4.6 billion, according to a filing with the Nigerian Stock Exchange.
According to the filing signed by the company secretary, Akinleye Olagbende, Olurotimi, a major shareholder in Geregu, sold 4 million shares at a price of N1,150 per share on February 6, 2025.
This sale marks a significant move in his investment portfolio, amounting to a total of N4.6 billion.
This sale comes after Olurotimi’s initial acquisition of 3.7 million shares in February 2023, which he purchased at an average price of N213.45 per share, amounting to an investment of N789.8 million. Over the past two years, his investment has appreciated by N3.8 billion, reflecting substantial growth in Geregu’s stock value.
The sale comes at a time when Geregu Power Plc is experiencing laudable growth in its financial performance. The company recently released its 2024 full-year audited financial accounts, which showed a significant 69.5% increase in pre-tax profit, rising to N41.2 billion.
This is an impressive achievement for a company operating in the often-challenging Nigerian energy sector, signaling its ability to deliver strong results despite a volatile market.
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The company’s post-tax profit also surged, growing by 71% to N27.4 billion.
This marks Geregu’s fifth consecutive year of profitability, a testament to the company’s strong business model and effective management practices.
- Additionally, the company’s total assets increased to N243.7 billion, highlighting its growing market value and financial strength.
- A particularly noteworthy aspect of Geregu Power’s performance in 2023 was its operating profit, which surged by 110%, rising from N14.8 billion to N31.1 billion.
- This remarkable increase underscores the company’s operational efficiency and its ability to drive profitability even in a difficult economic environment. Geregu’s revenue also saw a notable 74% increase, climbing from N47.6 billion to N83 billion.
- This surge in revenue is particularly impressive given the challenges facing the Nigerian power sector, including fluctuating energy prices and regulatory hurdles.
- The company’s financial results also included a 61% rise in profit before tax, which increased from N15.1 billion to N24.3 billion.
- This growth demonstrates Geregu Power’s resilience and its ability to generate value for its stakeholders, even in the face of broader economic challenges.
Given the company’s impressive growth trajectory and consistent performance, the sale of shares by Olurotimi Otedola is a strategic move that aligns with Geregu’s ongoing success and the continued optimism surrounding Nigeria’s energy sector.
Notably, Geregu Power is also the first power company to list on the Nigerian Exchange (NGX).