Geregu Power 9M profit crashes 80% to ₦7.55B despite Q3 forecast beat
Geregu Power's nine-month pre-tax profit plunged 79.85% to ₦7.55 billion from ₦37.46 billion a year ago, as revenue collapsed 80.71% to ₦25.35 billion. The power generator's earnings per share dropped to ₦2.35 from ₦10.04, reflecting sharply lower electricity sales and capacity charges across both revenue streams.
Direct costs fell 81.82% to ₦14.80 billion but couldn't offset the revenue crash. Administrative expenses more than doubled to ₦17.08 billion (up 127%), eating into gross profit. A ₦16.12 billion impairment reversal and ₦4.73 billion other income provided crucial support, pushing operating profit to ₦14.31 billion. Net finance costs of ₦6.77 billion then dragged pre-tax profit down.
On the balance sheet, total assets shrank 19.6% to ₦245.16 billion as receivables fell sharply. Cash reserves grew modestly to ₦33.26 billion. Shareholders' equity declined 28.3% to ₦42.02 billion. The stock closed at ₦825.70 on October 30, down 27.7% year-to-date from ₦1,141.50.
Despite the grim nine-month picture, Q3 pre-tax profit of ₦3.98 billion smashed the company's ₦617 million forecast by 545%. For investors, the question is whether this quarterly beat signals a turning point or a one-off boost from impairment reversals—especially with the stock already down 28% this year.