Geregu Power PLC has released its Q1 2025 financial forecast, outlining expectations for robust revenue growth, strong profitability, and efficient cash flow management. The company’s projections reflect confidence in its operational strategy and market position as it navigates a challenging energy sector.

Key Financial Projections

• Revenue: ₦60.92 billion, driven by stable energy production and robust demand.
• Cost of Sales: ₦35.94 billion, accounting for 59% of revenue, highlighting the high production costs typical of the energy sector.
• Gross Profit: ₦24.98 billion, reflecting a strong gross margin of 41%.
• Operating Profit: ₦18.49 billion, supported by disciplined cost management and operational efficiency.
• Profit Before Tax (PBT): ₦16.91 billion, underscoring resilience in a competitive market.
• Profit After Tax (PAT): ₦11.33 billion, after an income tax expense of ₦5.58 billion.

Cash Flow Forecast

• Net Cash Generated from Operating Activities: ₦6.03 billion.
• Investing Activities: ₦586.74 million, primarily from interest income.
• Financing Activities: ₦8.88 billion used, including ₦6.93 billion in bond repayments and ₦1.95 billion in interest payments.
• Closing Cash Balance (March 31, 2025): ₦38.32 billion, down from ₦40.58 billion at the start of the quarter.

Operational Efficiency and Cost Management

The forecast highlights several operational and financial metrics that showcase Geregu Power’s focus on efficiency. Administrative expenses are estimated at ₦2.79 billion, indicating disciplined overhead management. Impairment losses of ₦3.70 billion suggest challenges in receivables management or other financial assets.

Guidance and Outlook

Geregu Power PLC has not provided specific guidance for the remainder of the year. However, the Q1 2025 forecast indicates a focus on revenue growth, debt reduction, and maintaining strong liquidity. The company’s robust cash flows and strategic investments position it to capitalize on growth opportunities while managing operational challenges.