Geregu Power Plc, the first and only power-generating business to list on the Nigerian Exchange Limited, has demonstrated its compliance with post-listing standards by reporting its nine-month results for the period ending September 30, 2022.Infomation Guide Nigeria
In 2022, the statistics indicated a revenue of N39 billion, compared to N54 billion for the same period in 2021.
According to the corporation, the reduction is a result of a nationwide force majeure announced by Shell Petroleum Development Company Limited on the Forcados oil terminal pipeline. During the third quarter, the plant’s principal gas supplier had a significant impact on gas supply.
In its unaudited financial accounts for the third quarter of 2022, the company claimed that countrywide Force Majeure played a detrimental influence in the revenue shortfall.
It said, “The decline in revenue was largely due to gas supply constraints in Q3, 2022, which eventually led to the drop in the capacity delivered and energy sent out of 1314439Mwh as at 30 September 2022 as against Capacity delivered and Energy sent out of 1855920Mwh as at 30 September 2021.”
In order to reduce the consequences of the gap, the company stated that it has implemented an efficient cost-cutting strategy that will lower administrative expenses from N10.9 billion in 2022 to N2.9 billion.
In turn, the operational profit increased to N16 billion, up from N15.1 billion in the first nine months of 2021.
However, an increase in finance costs, mostly related to the N40.08 billion medium-term bond issued by the firm in 2022 for its anticipated purchase, reduced earnings before tax and profit after tax to N13.9 billion and N10 billion, respectively.
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The firm’s total assets increased from N115 billion in 2021 to N171 billion at the conclusion of the time under review.
GPP had its 2.5 billion shares listed on the NGX at N100 per share, for a total of N250 billion.
The publication of the company’s nine-month financial performance as of September 30, 2022 demonstrates a high level of corporate governance and compliance with post-listing requirements.
Recall that Mr. Femi Otedola, Executive Chairman of GPP, described the listing as the realisation of an ambition to bring world-class governance, sustainability, and business processes to the company and the Nigerian energy sector.
He said, “Listing on the Main Board of the Exchange will ensure that the long-term growth of the company is assured and its benefits will be passed on to our esteemed shareholders.”
Also, the Chairman, NGX, Mr. Abubakar Mahmood, said:
“A Main Board listing is a sign of commitment to strong corporate governance, excellence, professionalism, efficiency in service delivery, and providing increased returns to shareholders. It is our expectation that the Geregu Power listing will encourage other power generation and distribution companies to list their shares on the Exchange, thereby opening the sector up to cheaper, long–term capital that will boost infrastructural development and value creation,” he said.
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