Geregu Power Plc’s board of directors has recommended a dividend of N8 per share for the 2023 financial year, according to the company’s annual report filed with the Nigerian Exchange Limited on Tuesday. The proposed dividend, subject to shareholders’ approval at the next annual general meeting, will amount to N20 billion for shareholders on the register as of January 29.
Geregu Power, chaired by Femi Otedola, has a total of 2.50 billion units of shares. Otedola, who holds 1,245 units directly and 1,965,979,283 indirectly through Amperion Power Distribution Limited, stands to receive N15.28 billion as his share of the dividend.
The company’s board of directors, at a meeting held on Monday, also approved the Audited Financial Statements and Accounts for the 2023 financial year. Additionally, the board gave the nod for the appointment of Mr. Olukunle Oyewole as an Independent Non-Executive Director, subject to regulatory and shareholder approval.
During the period under review, Geregu Power recorded a significant increase in revenue, reaching N82.91 billion, marking a 74.11% growth from N47.62 billion at the end of 2022. This revenue figure represents the highest the company has earned in the last five years.
The annual report disclosed that the next major gas turbine overhaul for the company is estimated to cost N31.62 billion. Fifty percent of this estimated cost is expected to be funded from the cash generated by operations, while the remaining balance will be sourced through debt.
Part of the report stated, “The sum of N7.61 billion is being used as cash collateral for the Letter of Credit established for the next gas turbine major overhaul.”
Geregu Power recently joined the league of companies valued at N1 trillion on the local bourse in January, driven by the bullish market conditions.
