Geregu Power, owned by billionaire businessman, Femi Otedola released its audited accounts for the year ended December 2022, indicating revenues of N47.6 billion.
The power company became the first firm to publish its audited financials for the year ending December 2022 with PricewaterhouseCoopers as its independent auditor.
The company’s investors reacted favourably to the results which sent its share price soaring by 10 per cent at the close of trading on Tuesday, January 31, 2023.
The company’s shares have gained 93 per cent since it was listed in October 2022. Investors sentiment was favourable towards the shares of the company after it declared it was paying a dividend of N8 per share.
According to a report, Geregu Power reported a dividend of N20 billion or N8 per share which is an indicative dividend yield of 8 per cent based on its listing price of N100 per share.
The company was listed in October 2022, making its annualised returns around 24 per cent for early investors. Slight revenue decline Geregu Power reported revenues of N47.6 billion compared to N70.9 billion for the same period in 2021.
It also reported a pre-tax profit of N10.1 billion representing a 50.7 per cent drop in profits year on year.
Earnings per share also dropped from N8.22 to N4.07 per share. The company stated that the reason for the drop in revenues during the year was the challenges in the power sector which affected the gas supply resulting in a number of force majures as a result of the collapse of the national grid.
The company, however, reported a high gross profit margin of 48.5 per cent compared to 46.9 per cent the same in 2021.