Geregu Power to spend N27bn on gas turbine overhaul

Geregu Power has revealed that the estimated cost of its next major gas turbine overhaul is N27bn.

This was revealed in its Unaudited Interim Financial Statements for the period ended September 30, which was filed with the Nigerian Exchange Limited.

The power generating firm in its reports said, “The next major overhaul is estimated to cost N27bn, 50 per cent of the estimated costs will be financed from the cash generated from operations while the balance would be through debt. The sum of N4.961bn is being used as cash collateral for the Letter of Credit established for the next gas turbine major overhaul.”

Read also: Geregu Power sees 13% profit jump despite soaring impairment losses

In its half-year financial report, Geregu revealed that it made advance payments of N8.78bn to an Italian firm, Ansaldo Energia, for the overhaul of its gas turbine. As of December 2022, advance payment to the Italian firm was N4.616bn.

Also, Geregu said the net proceeds from its July 2022 N40.065bn unsecured corporate bond, which was for a seven-year tenor and at a coupon and effective interstate of 14.5 per cent and 14.70 per cent, will be used used to finance the acquisition of one of the power generation companies which is currently in the final stage of bidding processes by the Bureau of Public Enterprises.

Read also: Geregu Power sits on cash pile

Meanwhile, Geregu in its financials reported a 13.26 per cent growth in its profit after tax for the period ending September 30, which grew from N10.029bn to N11.359bn.

Its revenue for the period rose by 42.93 per cent to N55.747bn from N39.003bn in the previous year. This was boosted by Energy sold which appreciated N34.794bn from N24.777bn and Capacity charge which rose to N20. 952bn from N14.226bn as of September 2022.