Geregu Power Plc has posted a strong financial performance for the third quarter of 2025, recording a pre-tax profit of N11.151 billion, an 82.47% year-on-year increase.
The result, while slightly below its internal forecast for the quarter, underscores the company’s resilience amid rising gas and transportation costs that continue to squeeze margins across Nigeria’s power sector.
Combined with its half-year profit of N26.311 billion, Geregu’s nine-month pre-tax profit rose to N37.462 billion, representing a modest 3.31% increase from the same period in 2024. The company’s Q3 revenue grew 37.38% YoY to N43.834 billion, lifting total nine-month revenue to N131.467 billion, which already stands at 96% of its 2024 full-year total.
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The company’s latest unaudited interim financial statement, released on Friday, shows that energy sales remain the dominant revenue source, accounting for more than 65% of total revenue. Energy sales climbed 39.7% in the third quarter to N28.76 billion, while capacity charges rose 33% to N15.1 billion, reflecting steady demand and improved operational output from the plant.
However, the company continued to face cost pressures from gas supply and transportation, which together consumed over 65% of revenue during the quarter — up from 58% a year earlier. This led to a 53% jump in cost of sales to N28.58 billion, bringing total cost of sales for the nine months to N78.5 billion.
Despite the increased expenses, Geregu maintained robust profitability. Profit from core operations surged nearly 90% to N12.546 billion, up from N6.604 billion in Q3 2024. Gross profit climbed 30.91% year-on-year to N17.253 billion, while administrative expenses fell 14.91% to N2.163 billion, suggesting improved cost control.
On the balance sheet, total assets grew to N273.152 billion as of September 2025, compared to N243.470 billion at the end of 2024. Trade receivables now account for over 62% of total assets — a reflection of the industry’s persistent liquidity and payment collection challenges. Property, plant, and equipment declined by about 9% to N66.238 billion, representing 24.2% of the company’s assets.
On the equity side, Geregu’s retained earnings rose 7.49% to N55.192 billion, making up about 98% of its N56.413 billion in shareholders’ funds. The company’s total assets are now roughly five times its equity base, signaling strong asset growth backed largely by retained profit rather than new equity injections.
After-tax profit for the quarter stood at N4.917 billion, up 17.74% year-on-year, while earnings per share increased 17.96% to N1.97.
At the close of trading on October 10, 2025, Geregu’s shares traded at N1,141.50 on the Nigerian Exchange, representing a slight 0.74% decline year-to-date.
Geregu’s Profit Points to the Power Sector’s Growing Allure
Geregu Power’s third-quarter results highlight not only its strong fundamentals but also the enduring potential of Nigeria’s underdeveloped but highly profitable power market. Despite being Africa’s fourth-largest economy, Nigeria remains severely energy-deficient, generating about 5,000 megawatts on most days for a population of over 220 million.
This chronic shortfall has created an environment where companies able to generate and supply power efficiently — even on a modest scale — can command significant revenue. Geregu’s performance reflects this dynamic: it has managed to consistently post double-digit profit growth in a sector that remains the backbone of the country’s industrial and economic ambitions.
The company’s pre-tax profit margin of over 25% and after-tax margin of nearly 11% underline its strong operational control and pricing power, despite higher gas costs and grid payment delays. Analysts say such figures demonstrate that the Nigerian power sector, while risky, remains one of the most lucrative infrastructure investments in the country, especially as reforms to boost liquidity and expand private participation progress.
However, the sharp rise in trade receivables points to delays in payments from bulk buyers and government-backed offtakers, a longstanding issue in the sector. Gas supply costs, which make up a large portion of operational expenses, have also been volatile, largely due to currency depreciation and upstream pricing disputes.
Even so, Geregu’s consistent profitability — alongside its growing asset base and sustained operational expansion — suggests the company is well-positioned to benefit from Nigeria’s ongoing drive to stabilize and expand electricity generation.
