Geregu Power Jumps to N825bn After Earnings Release
After staying quiet over a long period, Geregu Power Plc has resumed a fresh uptrend as its market valuation hits N825 billion on Friday despite a bearish outing in the local bourse. In a regulatory filing, the company announced it made more than N8 billion in profit in the first half of 2023.
More than 1.466 million shares of the company were traded in the local bourse at a total transaction worth about N484 million. In the fourth quarter of 2022, the company listed 2.5 billion shares in the stock market at N100 per share.
Moving against the market trend, the power company has steadied at N300 per share, while its market value settled at N750 billion. It closed the week at N330 per share, a gain of N130 on each listed over a 9-month period. In its latest earnings result, the company`s basic earnings per share settled at N3.22, a decline from N3.64 kobo reported in the comparable period in 2022.
In the period, Geregu Power Plc’s profit attributable to ordinary shareholders declined to N8,053,884 (30 versus N9,102,089 reported 12 months earlier. The power company sales increased by about 3% year on year to N34.696 billion at the end of the first half of 2023, from N33.80 billion in the comparable period in 2022. This was supported by increased earnings from capacity charges in the period.
At the same time, its costs of sales saw a marginal decline. In the first half of 2023, Geregu Plc’s costs of sales settled at N16.536 billion, from N16.969 in the comparable period in 2022.
Gross profit surged 11% year on year to N18.160 billion, supported by a moderate decline in costs of sales at the time that the company strive to boost sales revenue performance.
In the first half of 2023, the power company saw a significant spike in foreign exchange gain following the devaluation of Nigerian naira. Its financial statement showed that foreign exchange gain rose to N11.341 billion from N3.264 billion 12 months ago.
This helped in reducing pressures from large administrative spending. According to the company’s financial statement, Geregu Plc administrative expenses surged by 39.80% to N2.415 billion from N1.727 billion in the first half of 2022.
The increase in the operating expenses item line was supported by a surge in repair and maintenance of plants and machinery overhead costs, professional services/consultancy costs, personnel, directors’ fees, and allowances.
The company reported that its net finance costs inched to N1.562 billion in the first half of the year, from N1.102 billion a year ago due to high interest environment, and new loan pricing.
Breakdown showed that Geregu Plc took new loans that pushed its finance costs to N6.147 billion, from N1.668 billion a year earlier. However, the burden of high borrowing costs was reduced by related financial income generated from its large deposit with banks.
The company earned N4.584 billion from large deposit placements and interest income-related party transactions, a significant increase when compared with N566 million reported in the comparable period.
Geregu Power was practically out of showed that pushed the equities market index to an 18-year high in the past weeks before the latest correction on overpriced tickers.
Though three out of five trading sessions closed in red, Geregu power was up from N300 on Monday and closed the week at N330 per share. The surge in market price pushed its total valuation to N825 billion, an increase of N75 billion. #Geregu Power Jumps to N825bn After Earnings Release