Geregu Market Value Skyrockets By 296% In 1 Year

Femi Otedola and some of the shareholders of Geregu Plant

During the course of the last seven trading sessions, the share price of Geregu Power Plc remained stable. The firm share had a sharp growth from its listing price of N100 in October 2022 to a top of N395.50. This means that since it was listed in October 2022, it has increased by more than 295%.

Following a protracted period of stable trading, Geregu Power’s recent earnings spurred a new surge that increased the company’s market worth. In the nine-month financial year 2023 results report, Geregu Power Plc reports a profit after taxes of more than N11.359 billion.

In comparison, the firm delivered N10.029 billion during the same time in 2022, a 13.26% year-over-year rise. According to information from the company’s regulatory filing, sales increased by N55.747 billion, a significant increase of more than 42% year-on-year from N39.03 billion in the comparable period in 2022.

Following an increase in activity levels, Geregu Power Plc also recorded a surge in costs of sales amidst pressures on price levels in the economy. Details from its financials showed that costs of sales rose by 33.91%, from N20.057 billion to N26.86 billion.

The company’s performance was reduced by the absence of other income lines, exactly a year after it reported N11.444 billion at the end of nine months of operations in 2022.

Dragging the company’s performance, impairment in financial assets widened to NN3.127 billion at the end of the nine months in 2023, versus N162 million reported a year ago.

The power company’s administrative overheard spending also surged more than double in the period, from N2.766 billion in 9 months of the financial year 2022 to N5.871 billion 12 months after.

Though operating profit remains relatively healthy when compared with the prior year’s result, negative cost movement impacted the company’s efforts to ramp up revenue.

At the end of the nine months, Geregu Power reported N19.887 billion, more than 24% above N16.028 billion reported a year ago. Net finance surged moderately despite a much higher borrowing rate.

The company reduced the impacts of higher costs of borrowings with interest income on its naira assets in terms of finance income. Its result showed that finance costs surged to N8.849 billion from N4.225 billion in 9 months of 2022.

However, the company also ramped up income from its short-term naira assets. Geregu Power reported that its finance income rose to N6.088 billion in 12 months from N2.155 billion in the equivalent period in 2022.

Its profit before tax obligation surged from N13.957 billion at the end of 9 months of financial year 2022 to N17.486 billion exactly 12 months after as the company strives to boost its investors’ wealth

Nigerian Exchange listed Geregu Power Plc by way of introduction on 5 October 2022. The company listed a total of 2.5 billion ordinary shares at N100 per share, under the Utilities sector and Electric Power Generation sub-sector of NGX.

Data from the local bourse showed that the power-generating company’s share price has now surged by 295% to N395.5, pushing its market valuation to N989 billion from N250 billion.

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