Otedola's Geregu Power Generates N5bn Revenue in Electricity Sales Amid Tariff Hike
- Foremost power company, Geregu Power, has generated a revenue of N5 billion from the sale of electricity
- The N2 trillion valuation company owned by billionaire Femi Otedola has remarkable growth in the first quarter of 2024
- As the only power company listed on the NGX, the company achieved a net profit of N16.1bn, surpassing its projected N5.5bn mark
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Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
Geregu Power Plc has garnered revenue totalling N50.4 billion from the sale of electricity and capacity charges to Nigerian consumers in the first quarter of 2024.
This marks a substantial surge of 225% in contrast to the N14.2 billion accrued during the corresponding period in 2023.
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Moreover, Geregu Power achieved a profit before tax of N21.9 billion, displaying a remarkable growth of 307.8% from the N5.3 billion recorded in the first quarter of the preceding year.
The accomplishment comes on the heels of a notable adjustment in electricity tariffs for Band A customers, implemented by the Nigerian Electricity Regulatory Commission (NERC).
Geregu Power records growth
It would be recalled that in February 2024, Geregu Power, owned by billionaire investor Femi Otedola, exceeded a N2 trillion valuation mark on the NGX.
During the assessment period, the company observed a remarkable surge in its profit after tax, ascending by 307.3% to reach N14.46 billion from the N3.54 billion recorded in the first quarter of the preceding year.
In 2023, the foremost power enterprise listed on the Nigerian Exchange Group, achieved a net profit of N16.1 billion, surpassing its projected figure of N5.5 billion.
According to Leadership, Geregu Power incurred an income tax charge of N7.43 billion, a notable increase from N1.8 billion in the first quarter of 2023, exceeding the anticipated N2.7 billion for Q1 of 2024.
Additionally, the power company allocated N21.5 billion toward the cost of sales, encompassing expenses related to gas supply and transportation, a significant rise from the N6.6 billion expended on gas supply and transportation in the first quarter of 2023.
Speaking on Geregu Power's performance, Wale Ogundeji, an energy analyst, said that substantial earnings from electricity sales underscore the critical role the company plays in Nigeria's energy sector.
He said:
"This achievement not only reflects effective management but also indicates growing demand for reliable power supply in the country. It's an encouraging sign for investors and stakeholders, signalling stability and potential for further expansion.
"Geregu's success should spur efforts towards modernization and efficiency in power generation, transmission, and distribution to ensure long-term sustainability and continued economic growth."
Otedola increases wealth by $300m in 2024
In related news, Legit.ng reported that Otedola's wealth has increased by $300 million since the beginning of the year.
This increase confirms his position as one of the wealthiest people in Nigeria and a top African business magnate.
Otedola is currently the fourth richest person in Nigeria according to Forbes, a U.S. business magazine that tracks the fortunes of the world's ultra-high net-worth individuals.
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Source: Legit.ng
