Otedola’s Power Company Records N39bn Revenue In Nine Months

Geregu Power Plc, owned by Nigerian businessman, Femi Otedola, has filed its nine months results ending September 30, 2022.

Naija News reports that the firm is the first and only power generating company to be listed on the Nigeria Stock Exchange Limited (NSE).

In an unaudited financial statements for the third quarter of 2022 released on Monday, the company stated that a revenue of N39bn was generated in 2022, compared with N54bn in the corresponding period of 2021.

The company said the loss in revenue was as a result of a nationwide Force Majeure declared by Shell Petroleum Development Company Limited on the Forcados oil terminal pipeline.

According to the company, gas supplies to the plant by its primary gas supplier was largely impacted in the third quarter, which led to revenue shortfall.

The company said: “The decline in revenue was largely due to gas supply constraints in Q3, 2022, which eventually led to the drop in the capacity delivered and energy sent out of 1314439Mwh as at 30 September 2022 as against Capacity delivered and Energy sent out of 1855920Mwh as at 30 September 2021.”

In cushioning the effect of the shortfall, the company said it adopted an effective cost saving strategy that saw administrative cost reduced from N10.9bn to N2.9bn in 2022.

The company added that as a result, the operating profit stood higher at N16bn, up from N15.1bn 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 and profit after tax to N13.9bn and N10bn respectively.

The power generating firm ended the period under review with higher total assets of N171bn, up from N115bn in 2021.

GPP had its 2.5 billion shares listed by introduction on the NGX at N100 per share, translating into N250bn.

The disclosure of nine months financial results ended September 30, 2022 exudes the high level of corporate governance and adherence to post-listing obligations as the company has filed its nine months.