Geregu Power Plc has reported a strong third-quarter performance for 2025, posting a pre-tax profit of N11.15 billion, representing an 82.5% increase compared to the same period in 2024. Despite slightly missing its internal forecast, the result underscores the company’s sustained operational strength and improved revenue generation.
When combined with its half-year profit of N26.31 billion, Geregu’s total pre-tax profit for the first nine months of 2025 stood at N37.46 billion, up 3.3% year-on-year.
Strong Revenue Growth
The company’s revenue for Q3 2025 surged by 37.4% to N43.83 billion, driven largely by higher energy sales and capacity charges. This brought Geregu’s nine-month revenue to N131.47 billion, already achieving about 96% of its entire 2024 revenue.
Energy sales remained the company’s key revenue driver, accounting for more than 65% of total income. Energy sales rose by 39.7% to N28.76 billion in the quarter, while capacity charges increased by 33% to N15.1 billion.
Rising Costs and Solid Profitability
Despite the higher earnings, input costs also increased notably. Gas supply and transportation consumed more than 65% of total revenue in Q3 2025, compared to 58% in the same period last year.
This resulted in a 53% year-on-year jump in the cost of sales to N28.58 billion, bringing total costs for the first nine months to N78.5 billion. Nevertheless, Geregu maintained strong profitability, with operating profit climbing to N12.55 billion, an 89.9% increase from the N6.6 billion recorded in Q3 2024.
Balance Sheet and Financial Position
As of September 2025, Geregu Power’s total assets stood at N273.15 billion, reflecting a 12.2% increase from N243.47 billion at the end of 2024.
Trade receivables made up over 62% of total assets, while property, plant, and equipment—valued at N66.24 billion—accounted for about 24.2% of the asset base.
On the equity side, retained earnings formed the bulk of shareholders’ funds, representing 98% of total equity valued at N56.41 billion. This means the company’s total assets are roughly five times its equity base, showing strong leverage and asset utilization.
Key Financial Highlights (Q3 2025 vs Q3 2024)
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Revenue: N43.83 billion (+37.4%)
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Cost of Sales: N28.58 billion (+52.6%)
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Gross Profit: N17.25 billion (+30.9%)
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Operating Profit: N12.55 billion (+89.9%)
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Profit Before Tax: N11.15 billion (+82.5%)
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Profit After Tax: N4.92 billion (+17.7%)
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Earnings per Share (EPS): N1.97 (+17.9%)
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Total Assets: N273.15 billion (+12.2%)
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Shareholders’ Funds: N56.41 billion (+7.3%)
Market Performance and Outlook
As of October 10, 2025, Geregu Power’s shares traded at N1,141.50 on the Nigerian Exchange, reflecting a 0.74% year-to-date decline.
Analysts say the company’s Q3 performance highlights its resilience amid rising operational costs. Geregu’s pre-tax profit margin of over 25% indicates strong efficiency and disciplined cost control, though its after-tax margin of around 11% shows the impact of higher taxation.
While rising gas prices and growing receivables remain concerns, Geregu Power’s consistent profitability, efficient operations, and healthy balance sheet continue to position it as one of Nigeria’s strongest players in the power generation sector.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
