GEREGU Power, Nigeria’s leading electricity generation company, has reported a 42 percent increase in revenue during the first nine months of 2023, despite the challenging economic conditions.
According to the data in the company’s nine-month interim financial report, released to the Nigerian Exchange Limited (NGX), their revenue peaked N55.7 billion, a significant rise from the N39 billion recorded in the same period last year.
Also, the Genco reported a pre-tax profit of N17.4 billion, marking a substantial growth of 25.3 percent compared to the N13.9 billion reported in the corresponding quarter of 2022.
In terms of profit after tax for the period under review, Geregu Power achieved N11.3 billion, up from N10 billion in the same period last year.
The revenue generated from energy sales in the three months ending in September 2023 surged from N3.2 billion in the same quarter last year to an impressive N13.1 billion.
This increase played a pivotal role in boosting the total energy sales figure to N34.7 billion, a notable rise from N24.77 billion recorded over the course of nine months.
Furthermore, the company reported earnings of N7.9 billion from capacity charges, compared to N1.9 billion for the same period last year, while the total capacity charges for the first nine months saw a remarkable increase, reaching N20.9 billion, up from N14.2 billion.
Further look into the result showed the company reported an impairment loss of N3.1 billion, a significant increase from the N162 million recorded in the same period in 2022. This impairment reflects provisions made for energy sold but yet to be received in due time.
Administrative expenses also witnessed a substantial increase, rising from N2.7 billion in the previous year to N5.8 billion during the period under review. This increase can be attributed to the effects of rising inflation and exchange rate depreciation.
During the quarter under review, Geregu Power recorded a finance income of N6 billion, which effectively mitigated the impact of its finance costs amounting to N8.4 billion, resulting in a net finance cost of N2.4 billion, a slight increase from the N2 billion reported during the same period in 2022.
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