Geregu Power Emerges NGX Most Compliant Listed Company For 2023

The management of the Nigerian Exchange Limited (NGX) has awarded Geregu Power Plc as the “Most Compliant Listed Company” for 2023 financial year at its 2024 edition Made of Africa Awards.

The award is a recognition for the listed power generating company adherence to corporate governance , ethics and regulatory standards.

According to the NGX, the award is given to “the listed company that  demonstrates the highest level of adherence to The Exchange’s Issuers’ Rules, without incurring any penalties.”

Geregu Power outperformed competitors in the category, which included other sub-awards such as Best Issuer for Fixed Income Listings, Most Compliant Trading License Holder, Broker of the Year, and Listing of the Year.

Geregu Power has established a reputation for timely filings of unaudited/audited result & accounts to the investing public and has consistently been among the first companies to file periodic reports as well as corporate disclosures.

In 2024, the company set the pace by publishing its 2023 audited accounts on January 30, weeks into the new year. It continued this trend with its first-quarter financials, released on April 9, just days after the quarter ended.

The company since listed 2022 has been proactive in organising its Annual General Meetings (AGMs) on time, often ahead of other listed companies quoted on the NGX.

In the last three years, the company has consistently complied with the post-listing requirement of the Exchange.

Geregu Power on October 05, 2022 was admitted into the main board of NGX by way of listing by Introduction (LBI) with the admittance of 2,500,000,000 of ordinary shares of 50 kobo each at N100 per share on the Exchange.

The stock price in its first year listed on NGX gained 49per cent from N100 per share to close at N149 per share in December 2022.

However, the stock price so far in 2024 has appreciated significantly by 188 per cent Year-till -Date (YtD) to close December 6, 2024 at N1,150.00per share from N399 per share it opened for trading on NGX.

Geregu Power as of December 6, 2024 has market capitalisation of about N2.88 trillion.

In terms of performance, Geregu Power announced N36.2 billion profit before tax in its unaudited nine months ended September 30, 2024 result accounts, about 107.3per cent increase from N18.1 billion declared in corresponding nine months of 2023 despite constraints in national grid capacity.

The company in the period reported a profit after tax of N24.1

billion, about 113 per cent increase from N11.36 billion reported in nine months of 2023.

A review of the company’s financial statements reveals that Geregu Power generated a total revenue of N112.58 billion in nine months of 2024, representing a 102 per cent increase year-on-year from N55.75 billion reported in nine months of 2023.

For the quarter ending September 2024, the company reported a revenue of N31.9 billion, up from N27 billion in the same period of 2023.

The revenue breakdown reveals that N71.4 billion was generated from energy sales, while N41.1 billion came from capacity charges.

Following an improved profits in 2023 financial year, shareholders of Geregu Power approved the payment of N8.00 per share dividend payout.

The company remains a key player in Nigeria’s power generation sector, addressing the country’s ongoing need for reliable electricity with an estimated contribution of 10 per cent to total electricity consumed in Nigeria.

Nigeria’s foremost power generation solutions provider in May 2024 signed a Memorandum of Understanding (MoU) with Siemens Energy to jointly develop solutions for capacity expansion.

The deal aims to triple Geregu’s total capacity from 435 to 1,300 megawatts (MW) with renewables accounting for about 15-20 per cent of overall nameplate capacity.

Also, as part of its capacity expansion efforts, Geregu Power is in the process of acquiring an additional plant, Geregu Power Plant II, a 434MW gas-fired power project to boost power production in the country and is currently in the process of building Geregu to further boost power generation in the country.

With its corporate office located in Victoria Island, Lagos, and its operational base along the Itobe- Ajaokuta Expressway in Ajaokuta, Kogi State, the company is positioned to contribute to Nigeria’s energy needs.

The management prioritizes corporate governance, environmental responsibility, and sustainability, utilizing modern technology to address Nigeria’s increasing energy demands.

The company is chaired by Femi Otedola, who has led the Board ofDirectors since 2013. Other members of the board are: Akin Akinfemiwa (chief executive officer) and Julius Omodayo-Owotuga (deputy chief executive officer), Christopher Adeyemi;  Anil Dua; Olawunmi Otedola; John Lee; Doron Grupper; Paul Gbededo and Olukunle Oyewoleje