Olufemi Adeyemi 

Geregu Power Plc has released its interim financial results for the first quarter ending March 31, 2025, revealing a pre-tax profit of N13.01 billion. This figure represents a significant 40.57% decrease compared to the N21.9 billion recorded in the corresponding period of 2024.

The power generation company's revenue also experienced a substantial decline during the quarter, falling by 37.02% year-on-year to N31.7 billion from N50.4 billion in the first quarter of 2024. A breakdown of the revenue shows that energy sales contributed the larger portion at N20.8 billion, while capacity charges accounted for the remaining N10.8 billion.

Despite the drop in revenue, Geregu Power demonstrated efficiency in managing its operational costs, successfully reducing its cost of sales by 10.27% to N19.7 billion in Q1 2025 from N22.01 billion in the same period last year. However, this cost reduction was not enough to offset the revenue decline, resulting in a gross profit of N12 billion, a substantial 57.75% decrease from the N28.4 billion reported in Q1 2024.

Notably, the company significantly curtailed its 'other loss,' primarily attributable to unrealized foreign exchange losses, which plummeted by 98.55% to just N7.6 million in the first quarter of 2025, compared to a substantial N529.4 million in the same period of 2024.

Profit from core operations also saw a downturn, standing at N14.6 billion in Q1 2025, a decrease from the N21.7 billion reported during the first quarter of the previous year. Consequently, the profit before income tax followed this trend, settling at N13 billion, reflecting the aforementioned 40.57% year-on-year decline.

Examining the company's balance sheet, Geregu Power's total assets witnessed an 8.02% increase, rising to N262.9 billion in Q1 2025 from N243.4 billion in Q1 2024. However, retained earnings experienced a contraction, falling by 21.07% to N40.5 billion compared to N51.3 billion in the first quarter of the previous year.

Key Financial Highlights (Year-on-Year Change):

  • Revenue: N31.7 billion (-37.02%)
  • Cost of sales: N19.7 billion (-10.27%)
  • Gross profit: N12 billion (-57.75%)
  • Unrealized foreign exchange loss: N7.6 million (-98.55%)
  • Operating profit: N14.6 billion (-32.62%)
  • Profit before income: N13 billion (-40.57%)
  • Total assets: N262.9 billion (+8.02%)
  • Retained earnings: N40.5 billion (-21.07%)

Despite the reported decline in profitability for the first quarter of 2025, Geregu Power's stock price stood at N1,141.50 on the Nigerian stock market as of April 12, 2025. It is worth noting the company's strong performance in the preceding year, achieving an impressive year-to-date growth of 188.22% in 2024. Investors will likely be analyzing these Q1 2025 results in the context of this prior strong performance and the prevailing economic conditions impacting the power sector.