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Femi Otedola, the billionaire investor who holds the biggest stake in Geregu Power Plc, could be heading into one of the company’s strongest years on record, new earnings projections suggest.
Geregu is forecasting ₦44.02 billion ($29.15 million) in post-tax profit for 2025—nearly double its take from 2024. The final quarter alone is expected to bring ₦12.1 billion ($8.01 million), slightly topping its third-quarter forecast.
The optimism is fueled by surging revenue. Fourth-quarter sales are projected at ₦63.05 billion ($41.75 million), with total turnover for the year reaching ₦207.66 billion ($137.52 million)—a sharp leap from ₦82.9 billion ($54.90 million) in 2023. Operating profit for the second half is pegged at ₦38.78 billion ($25.68 million).
Even with those gains, financing costs remain a concern. Geregu expects to pay about ₦2.97 billion ($1.97 million) in net finance costs during the year’s latter half, mostly from interest, leaving pre-tax earnings for July–December at ₦35.8 billion ($23.71 million).
Otedola, long a vocal supporter of Nigeria’s energy reforms, cast the outlook as both promising and precarious. Geregu’s future, he said, depends on stable operations, dependable gas supply, and steady demand—any disruption could trim profits.
Market analysts point out that Geregu’s decision to publish detailed forecasts has reassured investors, though they warn that gas shortages, transmission issues, and regulatory shifts still threaten to squeeze margins.
The board hasn’t announced any dividend plans yet, but if results hold up, Otedola and fellow shareholders could see solid returns and potential payout increases.
