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Olugbemi. Adeyinka Ogunleye
2 weeks ago
Overview
2025: Geregu Power pre-tax profit declines by 40.58% in first quarter
Geregu Power has reported pre tax profit of N13.014 billion for the first quarter financial year ended March 31, 2025. The amount reflecting a drop of N8.89 billion , about 40.58 per cent compared with N21.900 billion recorded in the same period of 2024.The company paid tax of N2.583 billion against N7.438 billion paid in the preceding year , bringing profit for the year to N10.431 billion from N14.461 billion achieved in the comparative period of last year, representing a decline of 27.09 per cent.
The company’s first quarter result submitted at the Nigerian Exchange showed that it’s revenue went down by 37.02 per cent to N31.758 billion from N50.428 billion in the preceding year. A breakdown of the company result showed that cost of sales decreased from N22.016 billion in 2024 to N19.755 billion at the end of March this year, Gross profit down from N28.409 billion to N12.002 billion, indicating a drop of N16.407 billion or 57.75 per cent
Despite reduced operational earnings, the company recorded a significant improvement in its foreign exchange position, with unrealised Forex losses dropping 98.55% to N7.6 million from N529.4 million a year earlier. Operating profit decreased by 32.62 per cent to N14.665 billion within the period under review from N21.766 billion reported in the previous year. Also finance income fell from N2.428 billion in 2024 to N1.779 billion in March 2025 while finance cost which stood at N2.295 billion in the previous year increased to N3.430 billion, bringing net finance cost to N1.650 billion against N133,011 reported in the first quarter 2024.
The company assets rose by 8.01 per cent to N262.987 billion at the end of 2025 three months financial year from N243.470 billion recorded the same period in 2024 while total liabilities up by 16.63 per cent to N167.218 billion from N143.374 billion at the end of March 2024. Financial analysts said the firm’s ability to manage foreign exchange volatility and its cost base will be crucial in sustaining profitability in subsequent quarters. With rising investor interest in energy infrastructure and the Nigerian Electricity Regulatory Commission’s evolving market reforms, Geregu’s financial resilience remains under watch.
Credit: Blueprint
