Geregu Power a Nigerian energy firm that generates and sells electricity has increased its dividend after 71% profit growth achieved in the year ended 31, December 2024.
The utility firm reported profit for the year that surged to N27.425 billion from N16.05 billion in 2023, and raised its annual dividend by 6.25% to N8.50 a share, a sign that accelerating growth is paying off for investors.
The money will be distributed to shareholders on the register as at the close of business on 14 March 2025. The total divided to be paid to shareholders is N21.25 billion.
Revenue for the Full Year 2024 period rose sharply by 66% to N137.12 billion as both energy sold and capacity charge revenue items increased.
Geregu’s astute Treasury management was evident in the period as finance income increased to N8.54 billion, helping to offset finance cost of N10.227 billion for 2024.
Geregu Invests N61.4bn in plants and equipment
Geregu Power is investing to maintain its leadership position in the Nigerian energy sector as it had N22.8 billion in assets under construction as at 31 December, 2024 under Property Plants and Equipment, according to data from its annual report seen by MoneyCentral.
The ongoing major overhaul of its turbines is estimated to cost a total of N61.47 billion with 71% of the estimated cost already contractually settled and 29% balance to be financed from cash generated from operations.
Contractual commitments include: N5.06 billion – Bank Guarantee in favor of Palero Commodities Limited with validity period of June 6, 2025 and N4.43 billion – Bank Guarantee in favor of Kwale Hydrocarbon Nigeria with validity period of April 1, 2025.
Geregu Power is not subjected to claim and other liabilities from litigation and legal action arising from ordinary course of business as at 31 December 2024.
Basic earnings per share came in at N10.97 and total assets for the power firm surged by 33.75% to N243.47 billion in December, 2024.
Geregu stock price closed trading Wednesday at N1,150 per share or about 21 times sales.
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