Geregu Power Plc, a listed power generation company in Nigeria, has reported a 101.9 percent in its earnings for the nine months (9M) of 2024, driven by a surge in energy sales.
The company’s revenue surged to N112 billion, from N55.7 billion reported in the same period last year, with 63 percent of the total amount from energy sales.
A breakdown of the total revenue made during the period revealed that energy sold rose to N71.4 billion while capacity charge rose to N41.1 billion.
The increase impacted the power-generating firm’s after-tax profit by 113.3 percent to N24.1 billion from N11.3 billion.
BusinessDay reported that Nigeria’s energy demand has been increasing due to the country’s fast-growing population and income growth. In 2023, Nigeria’s electricity demand was over 40 terawatt hours
Adebayo Adelabu, the minister of power, at the inaugural meeting of the Inter-Ministerial Power Sector Working Group, announced a 25 percent increase in Nigeria’s power generation, stating that this has occurred within one year of his appointment to head the ministry.
According to him, the power sector remains a major driver of the national economic growth, underlining the need for collaboration in tackling the challenges that could hinder the power sector from achieving full potential.
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According to him, the power sector remains a major driver of the national economic growth, stressing the need for collaboration in tackling the challenges that could hinder the power sector from achieving full potential.
A further analysis of Geregu’s report revealed that administrative expenses amounted to N10.1 billion in the period under review from N3.1 billion recorded in the same period of 2023.
Of the administrative expenses, personnel cost gulped N1.8 billion of the total amount, followed by repair and maintenance of machinery and plant with N1.2 billion, compared to N1.5 billion a year ago.
The company’s other income increased to N1.96 million as a result of the firm’s ability to generate proceeds from disposal of scraps.
Finance costs during the period declined by 13 percent to N7.3 billion from N8.4 billion in the same period in the previous year. The statement disclosed that the decline in finance cost was on the back of a 40.8 percent decline in the cost of borrowed funds.
The power-generating firm’s total assets rose to N221 billion from N170 billion while total liabilities rose to N171 billion from N122 billion.
Its shareholders’ fund during the reviewed period also rose to N459 billion from N48 billion.
The company’s cash flows for the nine months of 2024 were as follows: Net cash from operating activities amounted to N38.7 billion from a negative N1.3 billion; net cash generated from investing activities amounted to N4 billion from N2.3 billion recorded.
Net cash used in financing activities recorded amounted to a negative N44.3 billion from N9.6 billion generated in the corresponding period of 2023.
Cash and cash equivalent for the period increased to N49.3 billion from N15.3 billion.
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