Foremost a utility-sector power generation company, Geregu Power Plc has announced 254.4 percent revenue growth in its Q1 2024 Unaudited Results, posting a N50.428 billion as against N14.230 billion reported in the corresponding period of 2023.
Breakdown of the revenue earnings shows that energy sold stood at N31.003 billion in Q1, 2023 as against N9.081 in similar period of 2023 while capacity charge generated N19.425 billion during the period up from N5.149 billion in Q1, 2023.
The cost of sales comprising of gas supply and transportation rose by 222.53 percent to N21,515 billion in Q1, 2024 from N6.671 billion in Q1, 2023, while plant depreciation declined by 12.53 percent to N503 million in Q1 2024 down from N575 million in Q1, 2023.
Consequently, gross profit grew by 306 percent to N28.409 billion in Q1, 2024 as against N6.984 billion in the comparative period of Q1, 2023.
However, huge loses attributed to impairment loss on financial assets which stood at N3.967 billion in Q1, 2024 while there was no such item in the similar period of 2023 and administrative cost up by 124 percent to N2.676 billion in Q1, 2024 from N1.194 billion in Q1 2023 as well as high financial cost led to profit before tax growth of 308 percent at N21.900 billion as against N5.365 billion reported in the corresponding period of 2023.
The company reported huge income tax expenses of N7.439 billion up from N1.817 billion in Q1 2023 due to increase in statutory tax rate payable corporate entities, bottom line remains green with profit after tax recording 307.6 percent growth to N14.461 billion from N3.548 billion in the corresponding period of the previous year.
In terms of prospect to investors, analysis of the company’s basic earnings per share for the period came to N5.78 as against N1.42 as at March 31 2023, based on the profit attributed to ordinary shareholders of N14, 461,232,000 (March 31, 2023: N3, 548,227,000), and on the 2,500,000,000 (March 31 2023: 2,500,000,000) ordinary shares of 50kobo each, being the weighted average of ordinary shares in issue during the current and preceding period.
