Geregu Power Plc recorded a profit decline of N10.379billion in the 2022 financial year; the regulatory financial filing of the company on the Nigerian Exchange Limited has shown.
The first power firm to be listed on the domestic bourse said the decline was traceable to the nationwide force majeure declared by Shell Petroleum Development Company Limited on the Trans-Forcados pipeline and its consequent effects on the Forcados oil terminal, gas supplies to the plant by its primary gas supplier ceased from 17th of July 2022.
The company noted in the audited report that the maintenance works on the pipelines were, however, completed at the end of November 2022 and gas supplies and normalcy had since returned to its operations.
Meanwhile, a force majeure is a clause that is included in contracts to remove liability for natural and unavoidable catastrophes, such as armed conflict.
Although the company had its profit slump by more than 50 per cent from N20.550billion to N10.171billion, investors’ sentiment remained unchanged after the board of directors recommended an N8 dividend per ordinary share for shareholders.
Geregu’s revenue was reduced to N47.619billion at the end of 2022, a decline of 32.89 per cent compared to N70.956billion recorded in the corresponding year in 2021.
According to Geregu’s financial filing for the 2022 financial year, the firm’s energy sold declined year on year to N30.252billion against 33.80 per cent from N45.696billion in the corresponding period.
Similarly, revenue from capacity charge also fell to N17.367billion from N25.260billion.
The power company’s 2.5 billion outstanding shares were printed at N100 per share when it was first introduced on the domestic bourse.
At the close of trading on Friday, the share price rose to N219 per share from N160.00 the previous week, leaving the share value at N547.5billion.
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