Geregu Power Posts ₦13 Billion Q2 2025 Profit, Surpassing Forecasts With 61% Year-on-Year Growth.
Geregu Power Plc, Nigeria’s pioneering publicly listed power generation company, has announced a robust pre-tax profit of ₦13.297 billion for the second quarter of 2025, marking a significant 61.14% increase compared to the same period in 2024. The unaudited interim financial statements, released on 12 July 2025, reveal that the company not only exceeded its Q2 profit forecast but also demonstrated strong financial resilience amid challenging market conditions.
The company reported a remarkable revenue of ₦55.875 billion for Q2 2025, reflecting an 84.72% surge from ₦30.249 billion in Q2 2024. This growth was driven by strong performances in energy sales, which contributed £56.77 billion, and capacity charges, adding ₦30.87 billion to the revenue stream. Combined with a Q1 profit of ₦13.015 billion, Geregu Power’s first-half pre-tax profit reached ₦26.311 billion, although this represents a 12.74% decline compared to the first half of 2024 due to a 37% drop in Q1 revenue. Despite this, the company’s first-half revenue of ₦87.633 billion accounts for over 63% of its total 2024 revenue, positioning Geregu to potentially surpass its previous year’s performance.
Geregu Power’s success in Q2 was underpinned by strategic cost management, with operating expenses reduced from ₦13 billion in 2023 to ₦9.5 billion in 2024, despite inflationary pressures. The company also reported a 24% increase in trade and other receivables, contributing to asset growth. However, challenges such as impairment charges on receivables from the Nigerian Bulk Electricity Trading Plc (NBET) slightly impacted margins, with gross margins at 41%, down from a historical 50%. Sources within the company suggest that aligning impairment charges with industry averages could have pushed profits closer to £50 billion for the year.
The company’s share price, trading at ₦1,141.50 on the Nigerian Exchange as of 11 July 2025, reflects a modest 0.74% daily decline but an impressive 188.22% year-to-date growth in 2024, underscoring strong investor confidence. Geregu Power’s consistent dividend payouts, averaging over 100% in the past three years, further enhance its appeal to shareholders. The company recently declared a ₦21.25 billion dividend for 2024, marking its first dividend hike since listing in 2023.
Under the leadership of Chairman Femi Otedola, Geregu Power continues to leverage Nigeria’s evolving electricity sector, bolstered by government reforms and increased private sector involvement. Operating at just 50% capacity due to grid constraints, the company is pursuing expansion plans, including a potential increase to 1,300 MW through a partnership with Siemens Energy AG. These initiatives, coupled with ongoing investments in grid infrastructure, position Geregu Power for sustained growth and enhanced energy contributions to Nigeria’s economy.
As one of the first companies to release its Q2 2025 earnings, Geregu Power’s performance highlights its resilience and strategic focus, setting a positive tone for the energy sector. The company’s ability to exceed forecasts while navigating operational challenges signals a promising outlook for investors and stakeholders alike.
