Geregu Power sets post-listing compliance standard

Geregu Power Plc (GPP), the first and only power generation company to be listed on the Nigerian Exchange Limited (NGX), has demonstrated a high level of corporate governance and respect for post-listing obligations as the company filed its nine-month results ended September 30, 2022.

The results showed revenue of N39 billion in 2022, compared to N54 billion for the corresponding period of 2021.

The decline, according to the company, is the result of a nationwide Force Majeure (FM) event declared by Shell Petroleum Development Company Limited on the Forcados Oil Terminal pipeline. The plant's gas supply from its main gas supplier was largely impacted in the third quarter.

The company, however, said it has adopted an effective cost reduction strategy that has reduced administrative costs from N10.9 billion to N2.9 billion in 2022. exploitation amounted to 16 billion naira, compared to 15.1 billion naira. billion in the nine months of 2021.

However, an increase in financial charges, largely attributable to the N40.085 billion medium-term bond issued by the company in 2022 for its planned acquisition, moderated profit before tax (PBT) and profit after tax (PAT) at 13 naira 0.9 billion and 10 billion naira respectively.

The power generation company ended the reporting period with higher total assets of N171 billion, compared to N115 billion in 2021.

Geregu Power Plant (GPP) saw its 2.5 billion shares listed by IPO on the NGX at 100 naira per share, or 250 billion naira.

Commenting on the listing, Executive Chairman of Geregu Power, Femi Otedola, said it was the realization of a vision to bring world-class standards in governance, sustainability and business processes to the company and the Nigerian power sector.

"Listing on the Main Board of the Exchange will ensure the long-term growth of the company and its benefits will be passed on to our esteemed shareholders," he said.

An enthusiastic president of NGX, Mr. Abubakar Mahmood said he is particularly pleased that GPP has joined the prestigious group of companies listed on our main board, which will differentiate it as a professionally managed electricity company with high standards, having met the criteria for registration of NGX.

“A listing on the Main Board of Directors is a sign of commitment to strong corporate governance, excellence, professionalism, efficiency in service delivery and delivering enhanced returns to shareholders. We hope Geregu Power's listing will encourage other power generation and distribution companies to list their shares on the stock exchange, thereby opening the sector to cheaper, long-term capital that will spur infrastructure development and growth. value creation,” he said.

Speaking in the same vein, NGX Chairman and CEO Mr. Temi Popoola said, “The listing is a promising development in the country's power sector and we are delighted to welcome GPP on the Stock Exchange."

According to him, the listing will improve GPP's liquidity, increase its visibility to global investors, increase its value and enhance transparency, as our market is a solid platform to raise capital and enable sustainable growth for the national development.

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