• Saturday, May 18, 2024
businessday logo


Shareholders approve Geregu Power N20bn dividend payout for FY’2023

The shareholders of Geregu Power Plc have commended the board of directors N20billion dividend payout for 2023 financial year, this is even as they approved the dividend among other resolutions at the company’s 12th Annual General Meeting (AGM).

Also, the shareholders at the AGM in Lagos approved the re-election of two directors retiring by rotation and authorised the directors to fix the members of the auditors, among other resolutions.

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

Boniface Okezie, National Coordinator, Progressive Shareholders Association (PSAN), speaking at the AGM commended the N20billion dividend payout to shareholders, stressing Geregu Power as the first listed power generating company to list on the Nigerian Exchange Limited (NGX) has attracted another power generating company to list on the bourse.

He noted that the management has shareholders support, commending the staff for the outstanding 2023 financial year results.

Femi Otedola, chairman, Geregu Power while speaking to shareholders at the meeting stated that the N20 billion dividend payout is a testament of the company’s strong financial position and dedication to delivering shareholders value.

“This dividend declaration is not just a distribution of profits; it is a signal of our confidence in the company‘s future and our commitment to sharing our success with those who have invested in us,” he said.

He noted that 2023 was a year of solid financial performance for the company, underpinned by strong commercial momentum and strategic operational efficiencies.

“Our financial results reflect not only our resilience in the face of a challenging economic environment but also our commitment to continued growth and value creation.

“We experienced remarkable growth in our financial metrics, a testament to our robust business model and the effectiveness of our strategic initiatives. Our revenue saw a significant increase of 58 percent, reaching N82.9 billion.

“This growth was driven by a combination of factors, including increased foreign exchange rates in the tariff components, energy rate & capacity charges and operational efficiencies,” Otedola said .

On outlook for 2024, he said the company remains cautiously optimistic despite the challenges faced in the previous year.

“In 2024, Geregu Power aims to align our business operations with the global trend toward affordable, clean and efficient energy systems. This involves incorporating renewable energy sources into our power generation portfolio, a move that not only aligns with our sustainability goals but also positions us to capitalise on emerging market opportunities.

“Our commitment to innovation and sustainability, along with our strategic initiatives, positions us well to navigate the challenges and seize the opportunities that lie ahead,” he said.

Akin Akinfemiwa, chief executive officer, Geregu Power, explained that the company’s 2023 accomplishment underscores the management to operational excellence and financial prudence, positioning the company as a key player within the Nigerian Electricity Supply Industry and West African Power market.

He expressed that the company is looking forward to a brighter future as the management doubled down on operations and embarked on a journey to reposition itself beyond a power generation company to a total energy solutions provider.

“Our short-medium growth objectives are very clear; creating a sustainable power hub in the Ajaokuta axis with a combined capacity of circa 1300MW through aggressive acquisitions and deployment of technology to ramp up capacity with reduced volumes of natural gas as feedback,” Akinfemiwa explained on the company building a more resilient future.

According to him, with that the new government’s policies, including the Electricity Act of 2023 is expected to foster a more viable Nigerian Electricity Supply Industry offers a vista opportunities across the entire value chain

“This Act enables us to leverage our competences and capabilities to the transmission and distribution sub-sectors and promotes our drive towards our vision of becoming a total energy solutions provider.

“As you may be aware, we have started the process of engaging states in key economic areas for this purpose,” he added.