In a bid to maintain strict adherence to its post-listing obligations, Geregu Power plc (GPP), the only power-generating company listed on the Nigerian Exchange Limited (NGX), has reported revenue of N39 billion for the nine months ended September 30, 2022.
According to a statement seen by BusinessDay, the revenue declined from N54 billion in the corresponding period of 2021 due to a nationwide force majeure declared by Shell Petroleum Development Company Limited on the Forcados oil terminal pipeline, gas supplies to the plant by Its primary gas supplier was largely impacted in the third quarter.
Geregu Power said the adoption of an effective cost-saving strategy saw administrative costs reduced from N10.9 billion to N2.9 billion in 2022.
It said operating profit stood higher at N16 billion, up from N15.1 billion in the nine months of 2021.
“However, an increase in finance cost, largely attributable to the medium-term bond of N40.085bn issued by the company in 2022 for its planned acquisition, moderated the profit before tax (PBT) and profit after tax(PAT) to N13.9 billion and N10 billion respectively,” a statement seen by BusinessDay said.
The power-generating firm ended the period under review with higher total assets of N171 billion, up from N115 billion in 2021. Geregu Power had its 2.5 billion shares listed by introduction on the NGX at N100 per share, translating into N250 billion.
Read also: Explainer: What listed Geregu Power means for Nigeria’s power sector
Commenting on the listing, the executive chairman of Geregu Power, Femi Otedola, said that it was an actualisation of a vision to bring world-class standards in governance, sustainability, and business processes to the company and the Nigerian electricity sector.
“Listing on the Main Board of the Exchange will ensure that the long-term growth of the company is assured and its benefits will be passed on to our esteemed shareholders,” he said.
An excited chairman of NGX, Abubakar Mahmood has said they were particularly pleased that Geregu Power joined the prestigious group of companies listed on our Main Board, which will differentiate it as a professionally run power company with high standards, having met NGX’s listing criteria.
“A Main Board listing is a sign of commitment to strong corporate governance, excellence, professionalism, efficiency in service delivery, and providing increased returns to shareholders. It is our expectation that the Geregu Power listing will encourage other power generation and distribution companies to list their shares on the Exchange, thereby opening the sector up to cheaper, long-term capital that will boost infrastructural development and value creation,” he said.
Speaking in the same vein, the chief executive Officer, NGX, Temi Popoola, said: “The listing is a promising development in the country’s power sector and we are delighted to welcome GPP to the Exchange.”
According to him, the listing will enhance liquidity for GPP, increase its visibility among global investors, elevate its value and boost transparency, as our marketplace is a sterling platform for raising capital and enabling sustainable growth for national development.