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Cost Of Borrowing Pulling Down Geregu’s Profit

February 11, 2026
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Cost Of Borrowing Pulling Down Geregu's Profit

Despite a double-digit growth in Geregu Power’s top line, the company’s bottom line declined amid rising interest payments on its borrowings.

Prime Business Africa gathered that Geregu’s revenue grew by 34.86 percent to N184.93 billion in 2025, rising from the N137.12 billion generated between January and December 2024.

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The company’s cost of production grew faster than revenue, rising by 48.83 percent, from the N74.39 billion incurred in 2024, to N110.72 billion last year.

Consequently, Geregu’s gross profit increased by 18.30 percent year-on-year, from N62.72 billion to N74.20 billion.

Also, the company strengthened its balance sheet with N1.80 billion in other income, compared to the other loss of N583.76 million recorded the year before.

However, administrative expenses eat into the company’s earnings, as it grew by 81.98 percent to N17,81 billion last year, from the N9.79 billion expended in 2024.

Also, impairment charge on financial assets went up by 6.85 percent, from N9.40 billion in 2024, to N10.04 billion last year, leaving Geregu with an operating profit of N48.14 billion in 2025, compared to the N42.95 billion posted in 2024, indicating a 12.09 percent growth.

In addition, the bottom line was impacted following a 24.76 percent year-on-year decrease in finance income, which dropped from N8.54 billion to N6.42 billion, indicating the company’s earnings from interest on bank deposits dropped.

The impact was extended by a 23.10 percent increase in finance cost, which soared to N12.58 billion in 2025, from N10.22 billion the year before, as interest in borrowings, drafts and bonds surged.

This raised Geregu’s net finance cost to N6,16 billion last year, from N1,68 billion in 2024, representing a 265.48 percent growth.

As a result, the company’s profit before tax (PBT) rose marginally by 1.74 percent year-on-year to N41.98 billion, from N41.26 billion.

Out of the pretax profit, Geregu paid N14.73 billion as income tax expense in 2025, compared to the N13.84 billion recorded in 2024.

The 6.45 percent increase in the company’s tax expense slightly pulled down Geregu’s profit after tax (PAT) by 0.63 percent to N27.25 billion in 2025, from N27.42 billion recorded in 2024.

For press releases, tip-offs, and corporate information, call 08149575257 (hotline), email: editor@primebusiness.africa and publisher@primebusiness.africa

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