Nigeria’s largest listed power company, Geregu Power Plc, has reported a significant N507.2 million loss due to foreign exchange fluctuations. Despite this setback, the company achieved impressive earnings that surpassed experts’ predictions.
According to Geregu’s second-quarter financial statement, earnings soared by 132 percent to N80.6 billion in June, compared to N34.7 billion in the same period last year.
The company’s revenue from energy sales surged from N21.65 billion in Q1 2023 to N50.8 billion by June 2024. This figure nearly matches the total energy sales revenue of N51.8 billion for the entire year of 2023.
Owned by Femi Otedola, Geregu Power also saw a substantial rise in capacity charges, earning N29.8 billion in the first half of 2024, up from N13 billion in the corresponding period last year.
Geregu’s profit for the period reached N20 billion, a significant increase from the N8.5 billion recorded in the first six months of the previous year.
However, the company faced a N507 million loss due to the naira’s depreciation. Since the Central Bank of Nigeria introduced a managed float last year, the naira has steadily declined from around N550 per dollar to N1,560 per dollar as of July 11, 2024.
Despite the challenges posed by currency depreciation, Geregu Power Plc’s robust earnings performance highlights its resilience and growth potential in Nigeria’s power sector.
