Geregu Power Plc suffered a dramatic ₦69 billion revenue collapse at half-year 2026, with turnover plunging from ₦87.6 billion in the same period last year to just ₦18.7 billion. The sharp decline underscores the company’s operating challenges and sets the stage for what is shaping up to be a difficult year.
The downturn began in the first quarter, as sales revenue dropped from ₦31.8 billion to ₦18.2 billion year-on-year. The situation worsened in the second quarter, when revenue virtually dried up—yielding only ₦419 million for the period.
According to the interim financial report for the six months ended June 2026, the revenue collapse, coupled with rising costs, severely eroded Geregu Power’s profit capacity. The steep drop in revenue was primarily due to a temporary shutdown for a maintenance overhaul of its gas-fired turbines.
As a result, revenue from both energy sales and capacity charges plummeted—from about ₦36 billion in Q2 2025 to ₦284 million, and from around ₦20 billion to less than ₦135 million, respectively, in Q2 2026.
The company narrowly avoided a second-quarter loss that could have wiped out its Q1 profits. With sales revenue at ₦419 million and cost of sales at ₦326 million, gross profit for the quarter was only ₦92 million—a mere fraction of the ₦23.7 billion recorded a year earlier.
Administrative expenses soared nearly fivefold, from ₦2.6 billion to ₦12.5 billion. However, a windfall of over ₦16 billion from the reversal of financial asset impairments helped stave off a large operating loss, resulting instead in an operating profit of ₦3.7 billion.
Finance expenses added further pressure, rising by more than 50% to ₦5 billion. Net finance expenses nearly doubled to ₦3.4 billion for the quarter.
Pre-tax profit for Q2 crashed from over ₦13 billion last year to just ₦315 million. After-tax profit, assisted by an income tax credit, reached ₦400 million—down sharply from ₦9.7 billion in Q2 2025.
Half-Year Results: Deep Revenue Losses and Slim Profits
The half-year figures reflect a combination of a depressed Q1 and a virtually lost Q2. Sales revenue fell from ₦87.6 billion in H1 2025 to ₦18.7 billion in June 2026. Cost of sales dropped from nearly ₦52 billion to ₦11.7 billion, yielding a gross profit of ₦6.8 billion—down from ₦36 billion a year earlier.
Administrative expenses soared to ₦14.6 billion from just above ₦5 billion in the previous H1, but this was partially offset by the ₦16 billion impairment reversal (compared to a ₦6 billion charge last year). This shifted the company from what could have been a sizable operating loss to an operating profit of ₦8.5 billion—still a 71% year-on-year decline.
Net finance income improved by almost 50% to ₦4.9 billion, now accounting for 58% of operating profit.
Pre-tax profit dropped from ₦26.4 billion to ₦3.6 billion, while after-tax profit plunged from ₦20.3 billion to ₦2.5 billion for the half-year. Earnings per share fell sharply to ₦1, compared to ₦8.11 in the same period last year.
In summary, a combination of maintenance shutdowns, evaporating revenues, and escalating costs has left Geregu Power facing one of its toughest years, with profits down sharply and future performance hinging on the successful restoration of operational capacity.
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