Prime Business AfricaGeregu Power, the electric power generation, transmission and distribution company largely owned by Nigerian billionaire, Femi Otedola, failed to beat its topline and bottom line projections for the first quarter (Q1) of 2025.
Analysis of the company’s Q1 financial statements by Prime Business Africa showed that Geregu Power generated N31.78 billion revenue, 36.96 percent below the N50.42 billion turnover reported in Q1 2024 and fell below the N60.91 billion projected for the first quarter this year.
Join our WhatsApp ChannelAlso, it cost the company N19.75 billion to provide its services in the first three months of this year, compared to the N35.94 billion cost of sales projected and was also lower than the N22.01 billion posted in the same quarter last year.
The drop in revenue prevented the company from benefiting from the decline in the cost of sales, as gross profit depreciated by 57.75 percent to N12 billion from N28.4 billion, and resulted in Geregu Power failing to meet or exceed the N24.97 billion projected as gross profit for the reviewed period.
At the end of the period, Geregu Power had N13.01 billion as profit before tax (PBT), which is 68.27 percent lower than the N21.9 billion PBT recorded in the corresponding period last year.
Prime Business Africa gathered that the company had projected that the profit before tax would increase by 22.8 percent to N16.9 billion in Q1 2025.
The company continued to fall short of its Q1 2025 forecast as it paid N2.58 billion in income tax, which is below the N5.57 billion Geregu Power had expected it would pay and the N7.43 billion tax reported in the same period the year before.
Geregu Power had also forecasted that profit after tax (PAT) would decline by 21.68 percent to N11.32 billion, however, it dropped by 27.86 percent to N10.43 billion from N14.46 billion.
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