Geregu Energy Plc has posted a revenue after tax of ₦25.1 billion for the 9 months ended September 30, 2025.
This represents a marginal enhance from ₦24.19 billion recorded in the identical interval of 2024, in line with its unaudited monetary statements launched to the Nigerian Alternate Restricted (NGX).
The ability-generating firm, one of many few listed companies in Nigeria’s power sector, maintained its earnings development trajectory regardless of elevated financing prices, rising personnel bills, and a heavier tax burden.
Profitability and Earnings Efficiency
Geregu’s revenue earlier than tax stood at ₦37.46 billion, up from ₦36.26 billion a 12 months earlier — a rise of about 3.3% year-on-year. Revenue after tax, nevertheless, grew at a slower tempo on account of larger tax bills and elevated curiosity costs.
The corporate’s earnings per share (EPS) rose to ₦10.04, in comparison with ₦9.68 recorded in September 2024, translating right into a 3.7% development in return per share for buyers.
This constant efficiency continues to place Geregu Energy as one of the vital worthwhile companies on the NGX’s fundamental board, sustaining stability regardless of a difficult macroeconomic surroundings and chronic sector liquidity points.
Income and Working Effectivity
Whereas income particulars weren’t disclosed on this phase of the report, Geregu’s price construction means that the corporate is working effectively beneath its capability utilisation technique. Whole personnel bills rose modestly to ₦2.05 billion from ₦1.88 billion within the corresponding interval of 2024, largely pushed by efficiency bonuses, recruitment, and coaching prices.
Efficiency-linked bills — together with ₦628 million spent on bonuses, coaching, and recruitment — point out the corporate’s effort to retain expert employees and improve plant reliability. Nevertheless, this additionally underscores the rising burden of labour and contract manpower prices within the face of inflationary pressures and rising electrical energy era prices.
The corporate’s continued dedication to operational excellence seems to have mitigated the results of price escalation, guaranteeing revenue stability at the same time as different era firms wrestle with fee shortfalls from the Nigerian Bulk Electrical energy Buying and selling Plc (NBET) and gas-supply constraints.
Finance Price and Debt Publicity
One main concern for buyers is the corporate’s rising finance price, which jumped to ₦10.07 billion within the nine-month interval, in comparison with ₦7.33 billion a 12 months earlier — a 37% enhance year-on-year. The upper borrowing and bond curiosity funds outweighed positive factors from curiosity earnings, which stood at ₦5.3 billion.
This resulted in a internet finance price of ₦4.77 billion, up sharply from ₦753 million in the identical interval of 2024, revealing rising stress on Geregu’s debt servicing obligations. The corporate’s capital construction, whereas strong, could require optimization as the price of borrowing within the home market stays elevated following the Central Bank’s sustained tightening stance.
The sharp rise in curiosity bills may mirror refinancing of prior services, elevated working capital loans, or new financing tied to growth or upkeep tasks. Whereas leverage can amplify returns, continued escalation of curiosity prices may erode future margins if not counterbalanced by income development or price effectivity positive factors.
Taxation and Fiscal Impression
Geregu Energy’s whole tax cost surged to ₦12.36 billion within the 9 months to September 2025, up barely from ₦12.07 billion within the earlier 12 months. The corporate’s efficient tax charge climbed marginally to 33.33%, above the statutory 30% company tax threshold, on account of non-deductible bills and different levies.
This included an training tax of ₦1.12 billion, a police belief fund levy of ₦1.87 million, and deferred tax abatement changes totaling ₦943 million. The rising tax burden displays Nigeria’s complicated fiscal surroundings, the place a number of levies proceed to weigh on company profitability.
Geregu’s present tax liabilities additionally rose sharply to ₦32.33 billion from ₦19.97 billion, signaling substantial excellent obligations. Whereas this demonstrates the corporate’s strong earnings base, it additionally highlights mounting money outflows that might affect near-term liquidity if not strategically managed.
Asset High quality and Impairment
A optimistic spotlight within the 2025 interim report is the numerous enchancment in asset high quality. The corporate’s impairment losses on monetary belongings declined to ₦4.74 billion, lower than half the ₦10.15 billion reported in 2024. The discount suggests higher receivable administration and fewer credit score losses, a crucial achievement in Nigeria’s energy sector the place unpaid invoices from distribution firms stay a systemic drawback.
By minimizing impairment losses, Geregu freed up money circulate and strengthened its stability sheet — an important improvement because the sector strikes towards extra stringent monetary compliance and liquidity self-discipline beneath market reforms.
Shareholder Worth and Outlook
At an EPS of ₦10.04 and regular year-on-year development, Geregu Energy continues to ship worth to shareholders. The corporate’s efficiency reinforces investor confidence in its capability to generate sustainable revenue regardless of sector inefficiencies, risky gas provide, and regulatory delays in tariff changes.
Nevertheless, the rising finance and tax prices warrant shut consideration. If unchecked, these may compress internet margins in subsequent quarters, particularly in a high-interest-rate surroundings. Geregu’s administration might want to fastidiously stability growth objectives with capital effectivity, probably exploring refinancing methods or various funding sources to decrease debt prices.
Going ahead, investor sentiment round Geregu will rely largely on three elements: the corporate’s capability to maintain energy era effectivity, keep disciplined price management, and navigate fiscal and regulatory uncertainties.
As Nigeria’s first publicly listed energy era firm, Geregu stays a barometer for the trade’s funding potential — and its 2025 interim outcomes reaffirm each its resilience and the broader challenges confronting the nation’s power market.
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