Femi Otedola plans acquisition of another power company, after Geregu Power earned N14.23bn in 2023

Geregu Power Plc is reportedly planning the acquisition of Geregu II to shore up its generating capacity by about 434MW.

This is as the company, owned by Nigerian billionaire Femi Otedola, is gearing up to generate an estimated N31.24 billion, about $39.56 million in revenue during the first quarter of 2024.

The financial projection in the company’s published earnings forecast is a substantial leap from the N14,23 billion the firm earned in the same period in 2023.

The power company hopes for direct costs amounting to N16.76 billion during the first quarter of next year, compared to the N7.26 billion seen in the previous year. Geregu Power targets $7.04 million profit after tax in Q1 of 2024.

The company’s earnings projection is about N14.48 billion for the first quarter of 2024.

Also, the firm is targeting profit after tax of N5.56 billion, showing its commitment to growth in the power sector.

Billionaire Africa reports that Geregu Power’s financial success in the outgoing year set a strong foundation for its projections.

Otedola plans the acquisition of another power company

The company grew its revenue by 43%, from N39 billion in the first nine months of 2022 to N55.5 billion in the first nine months of 2023.

The energy company’s sales rose from N24.78 billion to N34.8 billion from energy sales, while capacity charges increased from N14.23 billion to N20.95 billion.

The company’s role in Nigeria’s power industry is reflected in its operation of Geregu I, a 435MW gas-powered plant, contributing to Nigeria’s total electricity generation.

Otedola emerges second Nigerian billionaire with shares in two firms worth over N1trn

Legit.ng reported that Billionaire Femi Otedola has been a significant force in the African business landscape and the Nigerian economy.

The Geregu Power Plc boss has become the second Nigerian billionaire to own stakes in two companies worth over N1 trillion or $1,244 555,000.

Otedola's record comes after the Chairman of BUA Group, Abdul Samad Rabiu, who owns BUA Cement and BUA Foods, clinched the first position.