The disappointing results of Geregu Power Plc has left shareholders who were sanguine about the future of the company discombobulated given the severity of the slump in earnings that cast a pall on dividend payment.
There were a lot of optimism about earnings growth when the company listed its shares on the NGX four year given the opportunities in the Nigeria market where there are few power firms in a country with growing energy demands.
For the first six months through June 2026, Geregu Power’s profit after tax (PAT) dipped by 88 percent to ₦2.54 billion from ₦20.27 billion as at June 2025.
Net profit margin reduced to 13.34 percent in the period under review from 23.23 percent the previous year.
The Nigerian electricity generating firm realised ₦18.65 billion in sales in the first six months of 2026, which is 78.71 percent lower than 2025’s ₦87.63 billion. The revenue decline was most pronounced in the second quarter (April–June 2026), when the company generated just ₦419.1 million in turnover compared to ₦55.87 billion in Q2 2025.
The performance reflects the company’s planned ₦61.47 billion major turbine maintenance program. While the overhauls aim to ensure long-term plant integrity and capacity availability, the temporary loss of billable capacity and energy output weighed on near-term margins and cash generation.
The company is ridiculously overvalued as it has a price to earnings ratio of 215.62 times as its share price has decreased by -27.67 percent since the start of the year.
Balance Sheet and Operational Rebound Outlook
Despite the operational slowdown, the company maintained debt servicing capacity, helped by financial asset impairment reversals of ₦16.12 billion and a reduction in total liabilities to ₦239.33 billion during the period.
Rating agency GCR Ratings affirmed Geregu Power’s national scale long-term issuer rating of ‘A(NG)’ with a Stable outlook. The rating agency cited expectations of a recovery in power generation and revenue once the turbine overhauls are completed and full available capacity returns to the national grid.
Geregu Power Plc is pioneering progress and possibility, by providing the right infrastructure and expertise to build a robust sustainable power generation structure across Nigeria.
Acquired in 2013, with generating plants in Ajaokuta, Geregu is one of Nigeria’s leading GENCOs that uses gas turbine as a clean energy source to generate power.
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