Geregu Energy Plc reported robust income development in its 2025 audited monetary statements with turnover rising to ₦184.94 billion from ₦137.13 billion in 2024.
Regardless of the strong top-line efficiency, the outcomes reveal intensifying steadiness sheet stress, pushed by a pointy enhance in receivables, larger impairment expenses, and a rising reliance on short-term liabilities.
Property Develop on Receivables Development
Whole property elevated to ₦305.01 billion as at December 31, 2025, up from ₦243.47 billion a yr earlier. The growth was largely pushed by present property, which rose to ₦241.90 billion from ₦170.80 billion.
Commerce and different receivables climbed sharply to ₦201.11 billion, in contrast with ₦121.82 billion in 2024, highlighting continued publicity to sector-wide fee delays inside Nigeria’s energy worth chain. Whereas the receivables development supported income recognition, it additionally heightened credit score and assortment dangers.
Money and money equivalents declined to ₦31.85 billion from ₦39.94 billion on tighter liquidity situations regardless of larger working earnings.
Non-current property lowered to ₦63.10 billion, down from ₦72.67 billion, largely because of depreciation of property, plant, and tools, indicating restricted capital expenditure through the yr.
Fairness Improves, Liabilities Rise Sooner
Whole fairness rose to ₦58.63 billion from ₦52.56 billion, supported by retained earnings development to ₦57.34 billion and a optimistic actuarial reserve of ₦33.17 million, in contrast with a destructive place within the prior yr.
Nevertheless, whole liabilities expanded considerably to ₦246.38 billion, from ₦190.91 billion in 2024.
Non-current liabilities declined to ₦32.21 billion from ₦47.53 billion as long-term borrowings and bond obligations declined.
In distinction, present liabilities jumped to ₦214.16 billion, up from ₦143.37 billion, pushed by larger commerce payables, elevated tax liabilities, and rising short-term borrowings.
The shift in direction of short-term obligations indicators growing stress on working money flows.
Prices and Impairments Strain Margins
Value of gross sales rose to ₦110.73 billion from ₦74.40 billion, rising sooner than income and compressing gross margins. Gross revenue elevated to ₦74.21 billion, in contrast with ₦62.73 billion within the earlier yr.
Administrative bills almost doubled to ₦17.82 billion, whereas impairment expenses on monetary property elevated to ₦10.05 billion.
Working revenue nonetheless rose to ₦48.15 billion, up from ₦42.95 billion, demonstrating operational resilience regardless of larger overheads.
Finance Prices Enhance, Revenue Stays Flat
Internet finance price widened to ₦6.16 billion, in contrast with ₦1.69 billion in 2024, as finance prices elevated and finance earnings declined.
Revenue earlier than tax stood at ₦41.99 billion, broadly flat in contrast with ₦41.27 billion a yr earlier. After tax, revenue for the yr settled at ₦27.25 billion, barely beneath ₦27.43 billion in 2024.
Earnings per share edged right down to ₦10.90, from ₦10.97, reflecting secure earnings with no change in issued share capital.
Outlook
Geregu Energy Plc delivered robust income development in 2025 and maintained profitability in a difficult working surroundings.
Nevertheless, the rising focus of receivables, larger impairment expenses, and rising short-term liabilities underline persistent structural dangers inside the energy sector.
Whereas the discount in long-term debt and bettering fairness base are positives, liquidity administration and receivables restoration will stay central to sustaining money circulation stability and earnings high quality within the intervals forward.
Be First to Comment