Shareholders of Geregu Power Plc have unanimously approved the dividend payout of N20 billion for the 2023 financial year.
The dividend, which amounts to N8.00 per share, was approved at the 12th Annual General Meeting of the company held yesterday in Lagos.
The shareholders commended the N20 billion dividend payout to shareholders, stressing Geregu Power as the first listed power generating company to list on the Nigerian Exchange Limited (NGX) has attracted another power generating company to list on the bourse.
Speaking to shareholders, the chairman of Geregu Power, Femi Otedola said: “in light of our strong financial performance in 2023, the Board proposes a dividend distribution that reflects our commitment to rewarding our shareholders.”
He explained that, “the dividend declaration is not just a distribution of profits; it is a signal of our confidence in the company’s future and our commitment to sharing our success with those who have invested in us.”
Otedola stated that 2023 was a year of solid financial performance for Geregu Power Pic, underpinned by strong commercial momentum and strategic operational efficiencies, saying that, “we experienced growth in our financial metrics, a testament to our robust business model and the effectiveness of our strategic initiatives.
“Our revenue saw an increase of 58 per cent, reaching N82.9 billion. This growth was driven by a combination of factors, including increased FX rates in the tariff components, energy rate & capacity charges and operational efficiencies.
“The operating profit for the year stood at N42.6 billion, showcasing our ability to manage costs effectively while scaling our operations. Profit before tax amounted to N24.3 billion, and we achieved a profit after tax of N16 billion.”
On the Company vision for 2024 and beyond, Otedola said, “we will continue to align our operations with global energy trends, focusing on sustainable, efficient, and renewable energy solutions.”
The chief executive officer of Geregu Power, Mr. Akin Akinfemiwa said that, “despite economic and operational disruptions in 2023, our unwavering commitment to value creation has enabled us to navigate these challenges effectively and deliver a robust performance with record financial metrics by optimising our existing assets to unlock value for our stakeholders.”
He noted that, “at the start of the year, we focused on strategic imperatives: optimising plant utilisation by securing alternative gas sources, conducting routine inspections and maintenance to minimise downtime, and ensuring efficient operations.”
He added that, “our resilient business model generated a total of 1.738 million Mwh. The transmitted energy to the national grid stood at 1.713 million Mwh.
“On the cost side, we continued to adhere to strict budget discipline, internal process realignment and operational efficiencies to minimise the impact of external domestic exigencies on overall operating expenses.”
In 2024, the CEO said “we shall launch a pioneering initiative aimed at fostering the growth and development of young engineers through a specialised young engineering scheme.”
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