By Seun Ibiyemi
Geregu Power Plc has projected a post-tax profit of N8.1 billion for the second quarter of 2026, translating to earnings per share of N3.27, as the power generation company forecasts steady performance despite a more cautious revenue outlook.
According to the company’s financial forecast, sales for the quarter are expected to reach N44.3 billion, lower than the N53.1 billion revenue projection made for the second quarter of 2025.
The projection mirrors the company’s earlier outlook for Q2 2025, when it estimated a post-tax profit of N8.6 billion but ultimately exceeded expectations by reporting N9.74 billion in profit after tax.
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Similarly, the company had earlier projected N53.1 billion in revenue for the same quarter in 2025 but later surpassed the estimate, reporting N55.8 billion when the financial results were released in mid-July 2025.
For the second quarter of 2026, Geregu Power expects cost of sales to decline to about N27.4 billion, compared with the N32.1 billion recorded in Q2 2025. If realised, the company’s gross profit would stand at approximately N16.9 billion, lower than the N23.7 billion gross profit posted in the corresponding period last year.
Operating expenses are also projected to decline. The company expects impairment losses on financial assets to reach N1.02 billion, while administrative expenses are forecast at N2.05 billion, leaving operating profit at about N13.8 billion.
Although slightly below the N15.02 billion operating profit recorded in Q2 2025, the projected figure suggests a relatively stable performance for the quarter.
Net finance costs are expected to moderate to around N1.6 billion, reflecting finance income of about N1.09 billion against finance costs of approximately N2.7 billion.
In comparison, finance costs rose to N3.3 billion in Q2 2025 from N2.5 billion, while finance income of N1.6 billion brought net finance costs to a higher level during the period.
The forecast follows the company’s strong performance in the 2025 financial year, when it reported N27.2 billion in net profit.
For the full year, Geregu Power posted total revenue of N184.9 billion, representing a 34.87 per cent increase year-on-year. Energy sales contributed N120.8 billion, while capacity charges accounted for N64.1 billion.
After accounting for N110.7 billion in sales costs, the company recorded gross profit of N74.2 billion, an 18.30 per cent increase, while operating profit stood at N48.1 billion.
However, rising financing expenses weighed on the company’s earnings. Borrowing costs of N6.3 billion and bond-related expenses of N5.02 billion pushed total finance costs to N12.5 billion, leaving net finance cost at N6.1 billion after N6.4 billion in finance income.
This represented a sharp increase compared to the N1.6 billion net finance cost recorded in the previous year, reflecting significantly higher financing expenses during the period.
Meanwhile, the company experienced a major ownership shift in late December 2025 when Nigerian billionaire Femi Otedola exited Geregu Power in a $750 million transaction, divesting his 77 per cent controlling stake in the company.
The deal was executed through the sale of Otedola’s 95 per cent stake in Amperion Power Distribution Company Limited to MA’AM Energy Ltd, marking one of the largest private power sector divestments in Nigeria.
