Geregu Power posts 50% profit decline on gas shortage

Geregu Power Plc, one of the electricity generation companies in Nigeria, reported a profit after tax of N10.17 billion for the financial year 2022, down 50.50 percent from the previous year.

The company, which was listed on the Nigerian Exchange Limited last October, said its revenue for the year ended Dec. 31, 2022 fell to N47.62 billion from N70.96 billion a year earlier.

“As a result of a nationwide force majeure declared by Shell Petroleum Development Company Limited on the Trans-Forcados pipeline and its consequent effects on the Forcados oil terminal, gas supplies to the plant by its primary gas supplier ceased from 17th of July 2022,” it said in its annual report.

“The maintenance works on the pipelines were however completed at the end of November 2022 and gas supplies and normal operations have since then resumed,” it added.

Geregu Power said it is on track to acquire another power generation company but did not provide further details.

In July 2022, the company issued N40.08 billion unsecured corporate bond for a seven-year tenor and at a coupon and effective interest rate of 14.5 percent and 14.7 percent respectively.

“The net proceeds would be used to finance the acquisition of one of the power generation companies which is currently in the final stage of bidding processes by the Bureau of Public Enterprises,” the company said.