Wealthy with cash Geregu Power Plc’s regulatory statement to the Nigerian Exchange, NGX, states that the business expects to make N9.87 billion in total profit for the third quarter of 2024.
Its profit goal is predicated on N42.511 billion in total revenue over that time frame. Additionally, Geregu Power predicted that its sales costs would total N21.892 billion. As a result, the power-producing company is anticipated to have a gross profit of N20.618 billion over that time.
Geregu Power projected its operating profit for the period to be N15.749 billion, with administrative expenses of less than N4.9 billion. Because of the significant effects that its finance income line is anticipated to have on more than N2.5 billion, net finance costs are forecast to be N747 million.
In the third quarter, Geregu Power Plc projected N15 billion in pretax profit, and the company estimated that it had to make provision of N5.128 billion as tax expenses for the period.
This left Geregu Power Plc with N9.874 billion in net profit in the third quarter of 2024, as details from its financial forecast submitted to the regulator showed.
Though heavy down the line, the company’s cash flow from operating activities is projected to be way lower than the profit the company made; this explains the difference between accounting profit and real cash flow movements.
According to its earnings forecast, cash flow from operating activities is expected to reach N2.316 billion in the third quarter of the year. Net cash used in investing activities is expected to be less than N2 billion.
Geregu Power is expected to service its debt with N2.314 billion between July and September 2024, in addition to another N2.890 billion payable on the amount raised via local bond sales.
The company expects its cash position to reduce to N65.611 billion at the end of the period from N70.256 billion at the beginning of the year.
