Geregu Power PLC posted revenue growth in the 2025 financial year, amid rising debt obligations, amounting to over ₦204 billion, which placed a strain on its balance sheet.
This is revealed in the company’s audited financial statement for the year ending December 31, 2025, released on Monday.
Pinnacle Daily analysis of the result showed that Geregu Power, a Nigerian power generation company, recorded revenue of ₦184.9 billion in 2025, a sharp increase from ₦137.1 billion in the previous year.
However, profit after tax slipped marginally to ₦27.25 billion from ₦27.42 billion in 2024, as higher operating costs and financing pressures diluted the gains from improved turnover.
Notably, the cost of sales surged to ₦110.7 billion from ₦74.3 billion, while administrative expenses also rose, reflecting the growing cost base required to sustain its operations.
More significantly, Geregu Power’s balance sheet expanded alongside its obligations. Total assets rose to ₦305 billion from ₦243.4 billion in 2024, largely driven by a build-up in trade and other receivables.
Trade receivables stood at ₦227.2 billion before impairment, with a substantial portion overdue, reflecting delayed payments from its sole off-taker, Nigerian Bulk Electricity Trading Plc (NBET).
READ ALSO:
- How Trump’s Visa Freeze May Jeopardise Economy, World Cup
- Otedola Divests from Geregu Power, Resigns as Board Chairman
- 3 Months on, Lagos Trade Fair Complex Traders Haunted by Demolition Nightmare
- Global Markets Reel as Trump’s Threat, Push to Control Greenland Sparks Tension
This concentration risk continues to expose the company to credit stress within the electricity value chain, where payment delays remain a structural challenge.
On the liabilities side, total obligations climbed to ₦246.3 billion as trade payables and borrowings increased.
Trade payables reached ₦136.8 billion, largely linked to unpaid gas supply costs, bank borrowings amounted to ₦33.9 billion, while ₦34.1 billion outstanding on a seven-year unsecured corporate bond added to its debt servicing commitments, amounting to a ₦204.8 billion burden.
Although current assets of ₦241.9 billion exceeded current liabilities of ₦214.1 billion, the margin remains narrow, highlighting liquidity sensitivity amid heavy short-term obligations and rising interest costs.
The company is further exposed to foreign exchange and interest rate risks on its borrowings and foreign currency balances.
Over the past five years, Geregu Power has posted strong revenue growth following a dip in 2022, with turnover rising from ₦47.6 billion that year to ₦184.9 billion in 2025.
Profitability recovered in tandem, peaking in 2024 before flattening in 2025, suggesting that cost and financing pressures are increasingly capping earnings growth.
In 2025, the company generated ₦72.2 billion in value added, of which ₦12.5 billion, or 17 per cent, was paid to providers of capital as interest, underscoring the rising cost of debt.
Employees received ₦6.9 billion, while ₦14.7 billion went to the government as taxes. The company retained ₦27.2 billion to support future operations and growth.
Despite the growing obligations, the board approved a dividend of ₦9.00 per share for the 2025 financial year, up from ₦8.50 in 2024, signalling confidence in cash generation but also raising questions about capital allocation priorities amid elevated debt, receivables risk, and sector-wide liquidity constraints.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
