Geregu Power Plc is projecting a pre-tax profit of N17.06 billion for the first quarter of 2026, according to its earnings forecast filed with the Nigerian Exchange (NGX) on Thursday.
The outlook, jointly signed by the company’s chief executive and chief financial officer, marks the company’s first official guidance for the new financial year 2026 and suggests a modest target when compared with the N13 billion pre-tax profit reported in similar period of 2025.
If realised, the projection will place Geregu on track for an improved year-on-year earnings performance.
Geregu’s Q1 2026 forecast shows the company expects:
- Profit before tax of N17.06 billion, supported by continued strong revenue performance and tight cost control. The company projects:
- Revenue figure of N57.12 billion, significantly higher than the levels seen in the early quarters of 2025, suggesting confidence in energy demand growth and improved plant availability going into 2026.
Geregu Power’s forecast for Q1 2026 at a glance:
- Revenue: N57.117 billion
- Gross Profit: N22.878 billion
- Cost of Sales: N34.239 billion
- Profit Before Income Tax: N17.055 billion
- Income Tax Expense: N5.029 billion
- Profit for the Period: N12.026 billion
- Impairment Loss on Financial Assets: N2.250 billion
- Administrative Expenses: N2.509 billion
- Operating Profit: N18.118 billion
Strong top-line performance
The company’s top-line expectations reflect solid operating activity. Geregu Power forecasts N57.12 billion in revenue for the first three months of 2026, matching the sharp rebound in sales recorded in the second quarter of 2025 when revenue jumped to N55.8 billion from N30.2 billion in the same period of the previous year.
The Q1 2026 projection includes a gross profit of N22.88 billion, after accounting for a cost of sales of N34.24 billion. This margin aligns with the company’s improving operating efficiency seen in 2025, particularly during Q2 when a stronger capacity-charge performance and steady energy sales helped lift gross profit to N23.75 billion.
Despite an expected N2.25 billion impairment loss on financial assets, the company projects its operating profit to reach N18.12 billion, demonstrating resilience in its core business.
Operational health and cost discipline
Operational sustainability remains one of Geregu’s strongest anchors. The forecast shows administrative expenses at N2.51 billion, consistent with past quarters and indicative of disciplined overhead management. Finance income of N1.14 billion and finance costs of N2.20 billion leave a net finance cost of N1.06 billion, a manageable burden considering the company’s expected operating profit strength.
On the cash-flow front, Geregu anticipates N21.66 billion in net cash generated from operating activities, supported by strong receipts from energy and capacity charges totalling N57.78 billion.
After taxes and supplier payments, the company expects to close the quarter with N46.68 billion in cash, up from N32.8 billion at the start of the year.
Although the company plans bond repayments totalling N6.35 billion and interest payments of N1.95 billion, cash flows remain positive due to healthy operating inflows and moderate capital expenditure.
Outlook
With a Q1 2026 pre-tax profit projection of N17.06 billion, Geregu Power is positioning for another year of robust profitability.
Continued revenue growth, strong operating performance, and disciplined cost management will be central to meeting or surpassing its targets. Investors will be watching how these factors evolve as the company enters the new financial year.
