Geregu Power Plc, a publicly listed power generation company in Nigeria, reported an after-tax profit of N10.4 billion for the first quarter of 2025, falling short of its projected earnings.
According to the company’s earnings release, Geregu had projected a Q1 after-tax profit of N11.3 billion. However, a decline in revenue streams impacted its ability to meet this target.
Data from the Nigerian Exchange Group shows that the company’s revenue fell to N31.8 billion from N50.4 billion reported in Q1’24, with 65.6 percent of the total amount from energy sales.
A breakdown of the total revenue made during the period revealed that energy sold fell to N20.8 billion while capacity charge also fell to N10.8 billion.
The decline impacted the power-generating firm’s after-tax profit by 37.1 percent to N10.4 billion from N14.4 billion.
Early this year, the Nigerian government allocated N2.36 trillion to subsidise electricity costs, aiming to alleviate the financial burden on consumers in 2025.
This came as the Multi-Year Tariff Order released by the Nigerian Electricity Regulatory Commission showed that the government incurred N178.03 billion in electricity subsidy in January despite minimal cash backing.
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This subsidy payment comes despite low allocations in the budget to cover the mounting electricity costs. The N178.03 billion is a decrease of 10.1 percent or N19.88 billion when compared to the N197.91 billion that was shouldered by the government on behalf of electricity consumers in the previous month.
These subsidies help bridge the gap between the actual cost of electricity production and the amount consumers are charged, effectively lowering energy bill
A further analysis of Geregu’s report revealed that it successfully reduced its cost of sales from N22.01 billion in Q1 2024 to N19.7 billion in Q1 2025.
However, gross profit decreased to N12 billion, down from N28.4 billion reported in the same quarter last year.
The company reduced its ‘other loss,’ largely due to unrealised foreign exchange losses, to N7.6 million compared to N529.4 million in Q1 2024.
Nevertheless, profits from core operations stood at N14.6 billion, marking a decline from the N21.7 billion reported during the same period last year.
On the balance sheet, total assets rose to N262.9 billion in Q1 2025, up from N243.4 billion in Q1 2024. Retained earnings, however, decreased to N40.5 billion, down from N51.3 billion.
As of April 12, 2025, Geregu Power shares are priced at N1,141.50 on the Nigerian stock market. In 2024, the company achieved an impressive year-to-date growth of 188.22 percent.
The company’s earnings per share fell to N4.17 from N5.78 during the period.
