This is certainly not the best of times for shareholders of Geregu Power Plc, as the directors, on Friday presented its report for the half-year ended June 30, 2026, wherein revenue fell from N87.632bn to N18.658bn, after the company only earned N419.126m in the three months between April and June, compared to N55.874bn in the second quarter of 2025.
The revenue shortfall within the period is blamed on the company’s revenue volatility after key generation assets are taken for mandatory, major overhaul due to the planned overhauls of its major gas turbines estimated to cost about ₦61.47 billion. This has resulted in operational downtime which has directly minimized the company’s energy sold, while contracting capacity charges, worsened by the fact that the company’s struggles with low cash-conversion ratios due to massive credit sales. There is also the issue of hundreds of billions of Naira tied up in unpaid bills primarily from the government-backed Nigerian Bulk Electricity Trading Plc (NBET) and then the gas pricing given that over 60% of Geregu’s direct operational expenses are tied up in gas supply and transportation, among others.
Net profit for the period closed 87.65% down from N20.276bn to N2.504bn.
Cost of sales for the period fell to N11.73bn, compared to N61.884bn, following which gross profit stood at N6.927bn from N35.748bn.
Other income stood at N2.803m, against the previous N12.303bn loss; administrative expenses amounted to N14.569bn from N5.169bn; impairment reversal on financial assets jumped to N16.116bn from the previous N990.728m loss; resulting in an operating profit of N8.476bn, against N29.686bn.
Finance income dropped from N3.528bn to N2.498bn; while finance cost rose to N7.408bn from N6.808bn; following which net finance cost dropped to N1.724bn from N3.279bn.
Profit before tax fell from N26.406bn to N3.566bn; just as income tax expenses closed the period at N1.062bn from N6.129bn; resulting in net profit of N2.504bn, from N20.276bn
