In 2023, Geregu Power Plc’s profitability level increased as a result of solid operating performance, resulting in a 58% increase in earnings. Its board of directors has announced a final dividend of N8 per share, citing improved performance in 2023.
The dividend announcement was well received by stock market investors, as Geregu Power Plc’s share price increased from N495 to N517.80 amid selloffs on the Nigerian Exchange.
The majority of the dividend for the year would go to the company’s stockholders. By the end of 2023, Libraville Power and Amperion Power Distributions Limited controlled around 84% of the company’s shares. The business declared a 16.26% free float.
Details from its financial statement revealed that Nigeria’s first power company to be listed on the local bourse reported impressive double-digit growth in the top line and bottom lines. Revenue climbed as a result of increased energy sales and capacity charges recorded in 2023, according to data from the company’s financial scorecard.
Details showed that the power company’s revenue soared 74.1% year on year to N82.91 billion in 2023 and was driven by volumes from total energy sold and capacity charge generated.
Geregu Power generated N51.8 billion from energy volume sold in 2023 from N30.25 billion and an additional income of N31.1 billion from its capacity charge versus N17.37 billion in 2022. Meanwhile, the surge in the company’s revenue was offset by a sharp year-on-year increase seen in its cost of sales. Details showed costs of sales climbing by 64% to N40.3 billion in 2023.
However, despite this increase, gross earnings improved impressively by 84.35% to N42.66 billion in the period. The power company’s operating profit saw a remarkable 110% increase to N31.1 billion.
But administrative expenses surged sharply by 173.23% to N12.97 billion during the same period, mainly due to a significant rise in expenses related to the repair and maintenance of plant and machinery, which escalated from N212 million in 2022 to N6.37 billion in 2023.
Its net income came stronger despite the margin dilutive pressures. Profit after tax grew by about 58% to N16.05 billion in 2023. The company’s bottom line was supported by a surge in foreign exchange gains to N502.3 million during the year.
