Geregu Energy Plc, a number one power-generating firm managed by Nigerian billionaire, Femi Otedola, has set a milestone within the Nigerian Trade (NGX) by being the primary publicly listed firm to launch its 2022 audited monetary report.
The well timed launch of Geregu Power’s audited results is a transparent indication of the group’s dedication to monetary transparency and accountability, additional solidifying its standing as certainly one of Nigeria’s premier power-generating firms.
The report, which was audited by PwC, one of many world’s largest accounting companies, acquired optimistic reactions from each institutional and retail traders, inflicting the corporate’s shares to skyrocket by 10 p.c throughout right now’s buying and selling session on NGX.
This boosted the corporate’s market capitalization past the $1-billion milestone.
Based on evaluation from an Funding Banker at a tier-one financial institution in Lagos, the worth of Geregu shares is predicted to soar past N800 ($1.73) per share within the close to future. The optimistic forecast relies on the corporate’s recent shortlisting for the acquisition of the Geregu II power station, a extremely sought-after 507-megawatt pure fuel facility positioned in Kogi State, Nigeria.
The end result underscores the corporate’s spectacular resilience and skill to stay profitable despite quite a few challenges and obstacles, together with malicious acts of vandalism on its fuel pipelines, in its working atmosphere.
Regardless of the setbacks and disruptions that prompted a decline in its income from N70.96 billion ($154.1 million) in 2021 to N47.62 billion ($103.4 million), Geregu was capable of obtain a revenue of N10.17 billion ($22 million) by way of the implementation of modern options, proactive danger administration, and shut collaboration with related authorities and stakeholders, permitting it to keep up its aggressive edge within the business.
Its resilient monetary efficiency in 2022 resulted in a major enchancment of whole belongings from N114.82 billion ($250 million) to N174.03 billion ($378 million), and an much more pronounced improve of money and money equivalents from lower than N4 billion ($8.7 million) to N51.63 billion ($112.1 million).
The top-of-year earnings translated into spectacular earnings per share of N4.07 ($0.0088) for the group’s 2.5 billion excellent shares, main the board to confidently suggest a N8 ($0.174) per share dividend to be paid to shareholders on Jan. 30. This substantial dividend cost is predicted to generate hundreds of thousands of {dollars} in dividend earnings for almost all shareholder, Femi Otedola, from his stake within the main power-generating firm.
Following the discharge of Geregu Energy’s audited monetary outcomes, the corporate’s inventory value noticed a major rise of 10 p.c on the native alternate, driving the worth per share towards N200 ($0.434). This outstanding 93.6-percent achieve for traders who bought shares within the firm since its listing on the NGX on Oct. 5, 2022 is a testomony to the corporate’s monetary stability and development potential.
As a foremost participant in Nigeria’s power sector, Geregu Energy is majority-owned by Otedola. The corporate boasts a formidable portfolio of three pure gas-fired energy vegetation with a complete put in capability of 435 MW, representing a major 10 p.c of Nigeria’s general power technology.
In pursuit of his imaginative and prescient to change into the main supplier of built-in energy within the area, Otedola made a strategic determination in 2019 to promote his majority stake in Forte Oil Plc and spend money on the ability business in Nigeria by way of the acquisition of a majority stake in Geregu Energy.
The transfer was pushed by his unwavering religion within the energy reforms of the federal authorities and a dedication to the expansion and improvement of Nigeria’s power sector.
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