Geregu Power profit increase reaches N20.18bn for H1 2025, as revenue grows to N87.63bn despite higher operating costs and surging impairment losses

Geregu Power profit increase has been confirmed in the company’s unaudited interim results for the half-year ended June 30, 2025, showing a post-tax profit of N20.18bn.

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This marks a marginal rise from the N20.01bn posted in the same period last year.

The financial statement, submitted to the Nigerian Exchange Limited, revealed that revenue for the first six months of 2025 rose to N87.63bn, up from N80.68bn in H1 2024.

This boost in topline earnings was largely attributed to stronger electricity sales and enhanced operational efficiencies across Geregu’s generation assets.

However, the growth in revenue was tempered by an increase in the cost of sales, which climbed to N51.88bn from N39.20bn in the previous year.

As a result, gross profit dipped to N35.75bn, down from N41.47bn in H1 2024, pointing to squeezed margins.

Administrative expenses rose 14 per cent year-on-year to N5.18bn, while impairment losses on financial assets spiked significantly to N6.08bn, compared to N505.25m in the corresponding period last year.

These factors contributed to a notable decline in operating profit, which fell to N15.02bn from N29.69bn.

Finance costs remained another pressure point, with net finance expenses reaching N1.72bn.

Nonetheless, the company still achieved a robust profit before tax of N26.31bn.

After accounting for tax charges amounting to N6.13bn, net profit was retained at N20.18bn for the reporting period.

“Despite the pressures, profit before tax stood at N26.31bn,” the company noted in the filing.

Despite the pressures, profit before tax stood at N26.31bn.

In a notable move during the period, Geregu declared and paid dividends totalling N21.25bn—surpassing the N20.18bn earned in retained profit, which in turn reduced retained earnings to N50.28bn as of June 30, 2025.

Total assets expanded to N267.60bn, up from N243.47bn as at December 31, 2024.

This growth was driven primarily by an increase in trade and other receivables, which rose to N150.56bn from N121.82bn.

On the liabilities side, total obligations increased to N216.10bn from N190.91bn.

While non-current liabilities declined to N36.87bn—due to a fall in bond payables (N23.61bn from N32.07bn) and long-term borrowings (N6.28bn from N8.48bn)—current liabilities spiked.

They stood at N179.23bn, compared to N143.37bn at year-end 2024.

Trade and other payables increased to N120.27bn, current tax liabilities grew to N26.10bn, short-term borrowings rose to N18.11bn, and bond payables also surged to N14.75bn.

Geregu’s cash and cash equivalents slightly declined to N39.57bn from N39.94bn at the start of the year, reflecting outflows from dividend payments and debt servicing.

Nevertheless, the company maintained positive operating cash flows, generating N29.63bn from core activities in the first half of the year.

The company had earlier announced a 69 per cent jump in profit before tax to N41bn for its 2024 audited financial year, compared to N24bn in 2023.

That performance had already positioned Geregu as one of the more financially resilient players in Nigeria’s power generation sector.

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As Geregu Power profit increase continues into 2025, analysts will watch how the company manages rising cost pressures and maintains investor confidence amid high dividend payouts and increasing current liabilities.