Geregu Power Plc has issued a lower earnings projection for the first quarter of 2026, adjusting expectations after falling significantly short of its revenue targets in early 2025.
In a filing released Wednesday, the power-generation company forecast N57.7 billion in revenue and N12 billion profit after tax (PAT) for Q1 2026. Payments to suppliers and employees are projected at N27.8 billion, leaving N21.7 billion in net cash from operating activities.
The more cautious outlook follows a difficult opening quarter in 2025, where Geregu posted N31.8 billion in revenue, far below the N60.9 billion it projected.
Profit after tax also came in lower than expected – N10.4 billion, compared with a target of N11.3 billion. Revenue dropped sharply from N50.4 billion in Q1 2024, driven by declines in both energy sold and capacity charges. Geregu generated N10.3 billion in operating cash during the period.
The company’s stock has also struggled, returning –0.74% over the past year, in contrast to the exceptional 188.22% year-to-date gain recorded in 2024.
Closely Watched
Geregu’s performance remains closely watched due to its weight in the power sector and the influence of its chairman, billionaire investor Femi Otedola.
Founded in 2006 and supplying power to the national grid since 2007, Geregu Power has evolved into one of Nigeria’s most prominent generation companies.
Otedola’s acquisition in 2013 and a $94 million overhaul in 2014 restored the plant to its full 435MW capacity, and by 2021 he secured full ownership. In 2022, the company became the first power-generation firm to list on the Nigerian Exchange.
The company posted strong results through 2024: profits more than doubled to N24.19 billion in the first nine months, and revenue surged by 102%, driven by major increases in energy output and capacity payments.
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