Geregu Power Plc has released its unaudited financial results for the nine months ended September 30, 2026, reporting a pre-tax profit of N7.55 billion, representing a 79.85% decline from N37.46 billion in the corresponding period of 2025.<\/p>\n
The nine-month revenue declined by 80.71% to N25.35 billion from N131.47 billion, while profit after tax fell by 76.54% to N5.89 billion from N25.10 billion, reflecting the weaker earnings performance<\/p>\n
In Q3 2026, pre-tax profit reached N3.98 billion, exceeding the company\u2019s N617.01 million forecast by 545.4%, despite revenue falling 28.20% below projections to N6.70 billion. However, the quarterly profit remained significantly below the level recorded in Q3 2025.<\/p>\n
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- Revenue: N25.35 billion (Down 80.71% YoY from N131.47 billion).<\/li>\n
- Pre-tax profit: N7.55 billion (Down 79.85% YoY from N37.46 billion).<\/li>\n
- Profit after tax: N5.89 billion (Down 76.54% YoY from N25.10 billion).<\/li>\n
- EPS: N2.35 (Down 76.59% YoY from N10.04).<\/li>\n
- Total assets: N245.16 billion (Down 19.62% from N305.01 billion at December 2025).<\/li>\n
- Cash and cash equivalents: N33.26 billion (Up 4.44% from N31.85 billion).<\/li>\n
- Shareholders\u2019 equity: N42.02 billion (Down 28.33% from N58.63 billion).<\/li>\n<\/ul>\n<\/blockquote>\n
Driving the numbers<\/strong><\/h4>\n
Geregu Power\u2019s nine-month performance reflects a significant contraction in electricity sales revenue, which weighed profitability despite the company exceeding its third-quarter earnings forecasts.<\/p>\n
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- Revenue declined by 80.71% to N25.35 billion from N131.47 billion in the corresponding period of 2025.<\/li>\n<\/ul>\n
The decline affected the company\u2019s two main revenue streams, energy sold and capacity charges, which account for electricity supplied and the availability of generating capacity.<\/p>\n
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- Direct cost of sales fell by 81.82% to N14.80 billion from N81.40 billion, reflecting the significantly lower level of operating activity.<\/li>\n
- However, the reduction in direct costs was insufficient to offset the revenue contraction. Consequently, gross profit declined by 78.91% to N10.56 billion from N50.06 billion.<\/li>\n<\/ul>\n
Administrative expenses presented another pressure point, increasing by 127.29% to N17.08 billion from N7.52 billion in the corresponding period of 2025.<\/p>\n
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- The increase in overheads absorbed a substantial portion of the company\u2019s gross profit, further weakening its underlying operating performance.<\/li>\n<\/ul>\n
Nevertheless, the company benefited from a N16.12 billion reversal of impairment losses on financial assets.<\/p>\n
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- This provided significant support to operating earnings and helped offset the impact of higher administrative expenses.<\/li>\n<\/ul>\n
Other income also increased to N4.73 billion from N1.31 billion, providing an additional contribution to earnings.<\/p>\n
Together, these movements resulted in an operating profit of N14.31 billion for the nine-month period.<\/p>\n
Below the operating line, finance income amounted to N2.63 billion, while finance costs stood at N9.39 billion.<\/p>\n
The higher finance costs relative to finance income resulted in a net financing expense of N6.77 billion, reducing the profit available before taxation.<\/p>\n
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- Consequently, pre-tax profit declined by 79.85% to N7.55 billion from N37.46 billion in the corresponding period of 2025.<\/li>\n
- After accounting for taxation, profit after tax fell by 76.54% to N5.89 billion from N25.10 billion.<\/li>\n
- Earnings per share consequently declined to N2.35 from N10.04, reflecting the significant reduction in earnings attributable to shareholders.<\/li>\n<\/ul>\n
Despite the weaker nine-month performance, the company exceeded its published third-quarter profit forecast, with Q3 pre-tax earnings of approximately N3.98 billion against a projection of N617.01 million.<\/p>\n
Balance sheet<\/strong><\/h4>\n
On the balance sheet, total assets declined by 19.62% to N245.16 billion as of September 2026, from N305.01 billion at December 2025.<\/p>\n
The contraction was largely associated with a reduction in trade and other receivables, which fell to N126.39 billion from N201.11 billion.<\/p>\n
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- This represented a significant reduction in outstanding amounts owed to the company and contributed to the smaller asset base.<\/li>\n
- However, cash and cash equivalents increased to N33.26 billion from N31.85 billion.<\/li>\n<\/ul>\n
Shareholders\u2019 equity declined by 28.33% to N42.02 billion from N58.63 billion, reflecting the combined impact of earnings and shareholder distributions during the period.<\/p>\n
Market reaction<\/strong><\/h4>\n
Geregu Power shares closed at N825.70 on Friday, October 30, 2026, unchanged from the previous trading session.<\/p>\n
The stock had declined by 27.7% year-to-date from its opening price of N1,141.50, ranking 119th on the Nigerian Exchange in terms of year-to-date performance.<\/p>\n
Source: <\/p>\n
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