Geregu Power Plc released its 2024 full-year audited accounts showing pre-tax profit for the period under review also rose 69.5% to N41.2 billion.
The company went on to generate a profit after tax of N27.4 billion, a whopping 71% to N27.4 billion.
The company’s The power generation company has now reported 5 consecutive years of profitability as total assets rose to N243.7 billion.
The company’s profit surge was on the back of a 65.3% surge in revenues in the year under review. This is also the highest profit the company has declared since it became listed and in the last 5 years.
Geregu Power is the first power company to list on the NGX.
Key Highlights 2024 FY vs 2023 FY
- Revenue: N137.1 billion, +65.3% YoY
- Gross profit: N62.7 billion, +47.1%
- Operating Profit: N42.9 billion, +37.9%
- Net Finance Cost: N1.6 billion, -76%
- Profit After Tax: N27.4 billion, +71%
- Earnings Per Share: N10.97, +70.8%
- Cash generated from operations: N31.3 billion, -43.6%
- Cash Balance: N39.9 billion, -43.1%
- Retained Earnings: N51.3 billion, +16.8%
- Total Assets: N243.7 billion, +33.7%
Commentary
Geregu Power recorded revenue surges in Energy Sold and Capacity Charges printing N87.4 billion and N49.6 billion respectively. While energy sold rose 69%, capacity charge delivered a revenue jump of 59.4%.
- However, operating profit margins dipped slightly to 42.6% from 51.3% reflecting the impact of inflation on the overall increase in the cost of goods sold.
- The company was however able to cut down drastically on operating expenses, going from N13 billion incurred in 2023 to N9.5 billion incurred in the year under review.
- We also observed a rise in impairment charges to N9 billion compared to a write back of N986 million a year earlier.
- Sources in the company suggest the right back was due to impairment on receivables from NBET. They also opine that if the charges were to fall to a peer average of 6% the company may have posted a profit of N50 billion.
The company’s total assets grew by 33.74% year-over-year, reaching N243.4 billion compared to N182 billion reported the previous year.
- Non-current assets increased to N72.6 billion, up from N36.3 billion in the previous year, primarily driven by property, plants, and equipment.
- Current assets also rose to N170.8 billion, compared to N145.6 billion reported the previous year. Notably, trade and receivables accounted for a significant portion of this total, amounting to N121.8 billion.
Geregu Power also repaid bond and external borrowing of about N17.6 billion in the year under review while borrowing an additional N9.7 billion.
- In terms of investment, the company spent around N42 billion in assets under construction as it continues to expand its plant capacity.
- The company paid N20 billion in dividends last year and also recommended N21.25 billion in dividends this year representing its first dividend hike since it was listed in 2023.
- Geregu Power has consistently paid a dividend of N20 billion annually.
The company’s share price closed at N1,150 as investors digested details of the results. The company is typically one of the first to file its audited financial statements and has consistently published results in January of every year since it became a publicly quoted company.
