TheCable

Geregu Power Plc, an electricity generation company (GenCo), has reported a revenue of N39 billion for the nine months ended September 30, 2022.

The company disclosed this in a statement on Sunday.

The figure represents a decline of 27.8 percent compared with the N54 billion recorded in the corresponding period in 2021.

Geregu Power said the decline was as a result of a nation wide force majeure (FM) 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.

The GenCo said it adopted an effective cost-saving strategy that saw administrative cost reduced from N10.9 billion to N2.9 billion in 2022.

“Consequently, operating profit stood higher at N16 billion, up from N15.1 billion in the nine months of 2021,” the statement reads.

“However, an increase in finance cost, largely attributable to the medium-term bond of N40.085 billion 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.”

The power generating firm said it ended the period under review with higher total assets of N171 billion, up from N115 billion in 2021.

Meanwhile, Geregu Power recently became the first GenCo to be listed on the NGX main board.

Commenting on the listing, Femi Otedola, executive chairman of Geregu Power, had said it was an actualization 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 had said.

On his part, Abubakar Mahmood, chairman, Nigerian Exchange Limited (NGX), had said they were particularly pleased that Geregu Power joined the prestigious group of companies listed on the 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,” Mahmood has said.

“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.”