Geregu Power Plc (GPP), has filed its full year results for the period ended December 31, 2022.
Key Highlights
- Revenue declined by 32.9% from N70.96bn to N47.62bn.
- Profit before tax stood at N15.17bn
- Profit after tax stood at N10.18bn
- Share Price Currently Stands at N193.60k
- Proposes a final dividend of N8.00 per share
Geregu Power Plant releases its audited financial statement for the period ended December 31, 2023, which showed a decline of -32.89% Y-o-Y from N70.96bn in 2021 to N47.62bn in 2022. The decline in revenue was attributed to a reduction in retail and whole energy consumption during the period. The statement further showed a N10.17bn profit after tax, representing a slide of -50.5% Y-o-Y compared to the previous year. The power plant, with a recent market price of N193.60 per share, saw a 10% rise in its quoted value in the last trading session with a year-to-date (YTD) rise of +29.93% after starting the year at N149. The company proposed a dividend of N8.00 per share, which came to N20bn. Analysts observe that the company’s free float, a measure of the number of shares available for public trading, stands at 1.07% or N3.9bn which is 80.5% lower than the N20bn minimum threshold value for companies listed on the NGX mainboard. Further observation is that on a recent market price of N183.60 per share, the company provides investors with a current dividend yield of 4.36%. A bit of interpretative ambiguity surrounds the power company’s statement that it would pay a dividend of N20bn from a full-year profit after tax of N10.2bn. Observers expect that the company would explain this situation at a future analysts’ conference call, as normal best corporate governance practice suggests that dividend pay-outs should be made from companies’ post-tax profits. The company can, however, dip into retained earnings to augment shareholders’ dividends, which may be the case in this instance (see chart 1 below).
Chart 1: