Geregu Power Posts N13 Billion Profit Amidst Revenue Decline in Q1 2025

Geregu Power Plc, a leading power generation company in Nigeria, today released its interim financial statements for the first quarter ended March 31, 2025, revealing a pre-tax profit of N13.01 billion.

While the figure remains substantial, it indicates a 40.57% decrease compared to the N21.9 billion profit recorded in the corresponding period of 2024.

The company’s revenue for the quarter stood at N31.7 billion, marking a significant 37.02% decline from the N50.4 billion reported in the first quarter of the previous year.

Further analysis of the financials shows that energy sales contributed the largest portion of the revenue at N20.8 billion, while capacity charges accounted for the remaining N10.8 billion.

Despite the drop in revenue, Geregu Power managed to reduce its cost of sales by 10.27% year-on-year, from N22.01 billion in Q1 2024 to N19.7 billion in the current quarter.

However, this reduction was not enough to prevent a sharp decrease in gross profit, which fell to N12 billion from N28.4 billion in Q1 2024, representing a 57.75% decline.

Notably, the company significantly reduced its “other loss,” primarily due to unrealized foreign exchange losses, to N7.6 million compared to N529.4 million in the same period last year.

This positive development helped to cushion the impact of lower revenue on overall profitability.

Operating profit for the quarter settled at N14.6 billion, a 32.62% decrease from the N21.7 billion recorded in Q1 2024.

On the balance sheet, Geregu Power’s total assets saw an increase to N262.9 billion in Q1 2025, up from N243.4 billion in Q1 2024. However, retained earnings decreased to N40.5 billion, down from N51.3 billion.

As of April 12, 2025, Geregu Power’s shares are priced at N1,141.50 on the Nigerian Stock Exchange. The company had demonstrated significant year-to-date growth of 188.22% in 2024.

Key Financial Highlights for Q1 2025:

Revenue: N31.7 billion (-37.02% year-on-year)
Cost of Sales: N19.7 billion (-10.27% year-on-year)
Gross Profit: N12 billion (-57.75% year-on-year)
Operating Profit: N14.6 billion (-32.62% year-on-year)
Profit Before Income Tax: N13 billion (-40.57% year-on-year)
Total Assets: N262.9 billion (+8.02% year-on-year)
Retained Earnings: N40.5 billion (-21.07% year-on-year)
While Geregu Power has reported a substantial profit for the first quarter of 2025, the significant decline in revenue and overall profitability compared to the previous year will likely be a key focus for investors and analysts in the coming days. The company is yet to release an official statement explaining the factors behind this performance.