Otedola's Geregu Power generates N5bn revenue in electricity sales amid tariff hike

Geregu Power Plc has garnered revenue totaling N50.4 billion from the sale of electricity and capacity charges to consumers in the first quarter of 2024.

This marks a substantial surge of 225% in contrast to the N14.2 billion accrued during the corresponding period in 2023.

Moreover, Geregu Power achieved a profit before tax of N21.9 billion, displaying a remarkable growth of 307.8% from the N5.3 billion recorded in the first quarter of the preceding year.

The accomplishment comes on the heels of a notable adjustment in electricity tariffs for Band A customers, implemented by the Nigerian Electricity Regulatory Commission (NERC).

It would be recalled that in February 2024, Geregu Power, owned by billionaire investor, Femi Otedola, exceeded a N2 trillion valuation mark on the NGX.

During the assessment period, the company observed a remarkable surge in its profit after tax, ascending by 307.3% to reach N14.46 billion from the previous N3.54 billion recorded in the first quarter of the preceding year.

In the entirety of 2023, the foremost power enterprise listed on the Nigerian Exchange Group, achieved a net profit of N16.1 billion, surpassing its projected figure of N5.5 billion.

Geregu Power incurred an income tax charge of N7.43 billion, a notable increase from the N1.8 billion in the first quarter of 2023, exceeding the anticipated N2.7 billion for Q1 of 2024.

Additionally, the power company allocated N21.5 billion toward the cost of sales, encompassing expenses related to gas supply and transportation, a significant rise from the N6.6 billion expended on gas supply and transportation in the first quarter of 2023.