Otedola's Geregu Power Posts N8bn Profit in 6 Months, Shareholders Smile to the Bank
- Geregu Power Plant has reported a huge profit of about N8 billion in the first six months of 2023
- The company’s revenue from energy sold and capacity amounted to 34.7 billion
- The earnings per share (EPS) also declined by 11.54%, reflecting a decrease in profitability per outstanding share
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Geregu Power Plant under the chairmanship of Femi Otedola has reported a profit of N8 billion for the first half of the year, financial report by the company has shown.
Analysis shows that the record is a decline of 11.52% to N8.1 billion in H1 2023 from N9.1 billion in H1 2022.
The result follows recent report that the billionaire sold 2.8 million units of the company’s share in a corporate filling which shows that the billionaire sold a tranche of 1,875,000 units of Geregu shares at N288.9 and another 948,092 units at the rate of N290.7.
Source: UGC
This tallies with reports notifying that Paul Otedola, the billionaires brother has increased his shares in Geregu Power by acquiring 300,000 units at N288.9 per share, worth N86.67 million while his other brother, Ayokunle Michael, bought four million company shares at N219 per unit for N876 million on February 2.
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Breakdown of Geregu Power's report
Check by Legit.ng shows that company’s revenue amounted to 34.7 billion in six months from January to June 2023. Energy sold saw the scoop the most income at N21 billion for the period while capacity change brought in N13 billion for the company.
While the Gross profit also increased by 7.02%, indicating improved profitability, the operating profit declined by 5.02% compared to the previous year. This resulted in a lower profit before tax of N12.3, down by 8.85%.
The income tax expense decreased by 3.30%, making the company's profit after tax dip by 11.52% to reach N8.1 billion. The earnings per share (EPS) also declined by 11.54%, reflecting a decrease in profitability per outstanding share.
Analysts at Future view opined that the report indicates a mixed performance for the company which recorded a modest increase in revenue and gross profit but decline in operating profit, profit before tax, and profit after tax raises concerns about profitability.
The financial company noted that the decrease in net assets (-24.33%) and negative cash flow (-232.14%) further highlight potential financial challenges. However, it added that improved return on equity suggests positive returns for shareholders.
Geregu disburses N8.8bn for gas turbine overhaul
Legit.ng earlier reported that Geregu Power Plc said it had paid N8.8 billion in advance to an Italian company, Ansaldo Energia, for overhauling its gas turbine as of June 2023 as disclosed by the company in its unaudited interim statement of its June 30, 2023, financials filed with the Nigerian Exchange Limited.
The company claims of December 2022, advance payment to the Italian company amounted to N4.616 billion.
This also follows a report by Legit.ng that Otedola earned about N71 billion in one month, thanks to the performance of Geregu Power, where he holds the majority stake with about 2.38 billion shares.
Source: Legit.ng
