Geregu Power’s 9M pre-tax profit falls 79.85%, despite beating Q3 forecast

Geregu Power Plc has released its unaudited financial results for the nine months ended September 30, 2026, reporting a pre-tax profit of N7.55 billion, representing a 79.85% decline from N37.46 billion in the corresponding period of 2025.

The nine-month revenue declined by 80.71% to N25.35 billion from N131.47 billion, while profit after tax fell by 76.54% to N5.89 billion from N25.10 billion, reflecting the weaker earnings performance

In Q3 2026, pre-tax profit reached N3.98 billion, exceeding the company’s N617.01 million forecast by 545.4%, despite revenue falling 28.20% below projections to N6.70 billion. However, the quarterly profit remained significantly below the level recorded in Q3 2025.

Key Highlights

• Revenue: N25.35 billion (Down 80.71% YoY from N131.47 billion).
• Pre-tax profit: N7.55 billion (Down 79.85% YoY from N37.46 billion).
• Profit after tax: N5.89 billion (Down 76.54% YoY from N25.10 billion).
• EPS: N2.35 (Down 76.59% YoY from N10.04).
• Total assets: N245.16 billion (Down 19.62% from N305.01 billion at December 2025).
• Cash and cash equivalents: N33.26 billion (Up 4.44% from N31.85 billion).
• Shareholders’ equity: N42.02 billion (Down 28.33% from N58.63 billion).

Driving the numbers

Geregu Power’s nine-month performance reflects a significant contraction in electricity sales revenue, which weighed profitability despite the company exceeding its third-quarter earnings forecasts.

• Revenue declined by 80.71% to N25.35 billion from N131.47 billion in the corresponding period of 2025.

The decline affected the company’s two main revenue streams, energy sold and capacity charges, which account for electricity supplied and the availability of generating capacity.

• Direct cost of sales fell by 81.82% to N14.80 billion from N81.40 billion, reflecting the significantly lower level of operating activity.
• However, the reduction in direct costs was insufficient to offset the revenue contraction. Consequently, gross profit declined by 78.91% to N10.56 billion from N50.06 billion.

Administrative expenses presented another pressure point, increasing by 127.29% to N17.08 billion from N7.52 billion in the corresponding period of 2025.

• The increase in overheads absorbed a substantial portion of the company’s gross profit, further weakening its underlying operating performance.

Nevertheless, the company benefited from a N16.12 billion reversal of impairment losses on financial assets.

• This provided significant support to operating earnings and helped offset the impact of higher administrative expenses.

Other income also increased to N4.73 billion from N1.31 billion, providing an additional contribution to earnings.

Together, these movements resulted in an operating profit of N14.31 billion for the nine-month period.

Below the operating line, finance income amounted to N2.63 billion, while finance costs stood at N9.39 billion.

The higher finance costs relative to finance income resulted in a net financing expense of N6.77 billion, reducing the profit available before taxation.

• Consequently, pre-tax profit declined by 79.85% to N7.55 billion from N37.46 billion in the corresponding period of 2025.
• After accounting for taxation, profit after tax fell by 76.54% to N5.89 billion from N25.10 billion.
• Earnings per share consequently declined to N2.35 from N10.04, reflecting the significant reduction in earnings attributable to shareholders.

Despite the weaker nine-month performance, the company exceeded its published third-quarter profit forecast, with Q3 pre-tax earnings of approximately N3.98 billion against a projection of N617.01 million.

Balance sheet

On the balance sheet, total assets declined by 19.62% to N245.16 billion as of September 2026, from N305.01 billion at December 2025.

The contraction was largely associated with a reduction in trade and other receivables, which fell to N126.39 billion from N201.11 billion.

• This represented a significant reduction in outstanding amounts owed to the company and contributed to the smaller asset base.
• However, cash and cash equivalents increased to N33.26 billion from N31.85 billion.

Shareholders’ equity declined by 28.33% to N42.02 billion from N58.63 billion, reflecting the combined impact of earnings and shareholder distributions during the period.

Market reaction

Geregu Power shares closed at N825.70 on Friday, October 30, 2026, unchanged from the previous trading session.

The stock had declined by 27.7% year-to-date from its opening price of N1,141.50, ranking 119th on the Nigerian Exchange in terms of year-to-date performance.