Page 13 - AfrElec Week 06 2023

AfrElec PERFORMANCE AfrElec

Geregu Power Plant,
Nigeria

Nigeria’s Geregu Power announces $43mn

dividend for 2022, shares jump 10%

NIGERIA NIGERIA’S electricity generating company to generate electric power and supply it to the
Geregu Power has announced a NGN20bn national grid.
($43.3mn) dividend for the year ended Decem- “As a result of a nationwide force majeure
ber 31, 2022, amounting to NGN8 per share, declared by Shell Petroleum Development
Nairametrics reports. Company Limited on the Trans-Forcados pipe-
Shares in Geregu, which was listed on the line and its consequent effects on the Forcados
Nigerian Exchange Limited (NGX) in October oil terminal, gas supplies to the plant by its pri- Geregu Power’s
2022, jumped 10% on the news. It was the first mary gas supplier ceased from 17th of July 2022,”
listed company to release its annual audited Geregu said. share price
financial statements in compliance with the However, maintenance works on the pipe-
post-listing requirements. lines were completed at the end of November gained 93% in
The declared dividend shows an annualised 2022 and gas supplies and normal operations
yield of 24% for shareholders who bought the have since resumed, reports Nairametrics. just under four
company’s share when it was listed at NGN100 Despite the drop in revenues and an increase months of the
per share. in energy input prices due to a higher inflation-
Geregu reported revenues of NGN47.6bn ary environment, Geregu reported a higher company being
compared to NGN70.9bn for the same period in gross profit margin of 48.5% compared to
2021, with a pre-tax profit of NGN10.1bn rep- 46.9% in the same period in 2021. The com- listed.
resenting a 50.7% drop in profits year on year. pany also managed to keep operating costs flat
Earnings per share also fell from NGN8.22 to at NGN4.7bn.
NGN4.07. Investors appeared to be unfazed by the
According to Nairametrics, Geregu attrib- decline in profits suggesting they may have seen
uted the drop in revenues to the challenges in this as a short-term challenge, writes Nairamet-
the power sector. During the year, gas shortages rics. The company is majority-owned by billion-
resulted in a number of force majeure incidents aire businessman, Femi Otedola.
causing the national grid to collapse frequently. Geregu Power’s share price gained 93% in just
Geregu runs the Geregu Power Plant, which under four months of the company being listed.
was constructed by the federal government of The listing has added NGN250bn to the market
Nigeria and commissioned into service in 2007 capitalisation of NGX.™

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