Geregu Power has disclosed that the estimated cost for its upcoming major gas turbine overhaul stands at N27 billion. This information was outlined in the company’s Unaudited Interim Financial Statements for the period ending on September 30, which were filed with the Nigerian Exchange Limited on Wednesday.
According to the power generation company, “The next major overhaul is estimated to cost N27 billion, with 50 percent of the estimated costs to be financed from cash generated from operations, while the remaining balance will be obtained through debt. The sum of N4.961 billion is being used as cash collateral for the Letter of Credit established for the next gas turbine major overhaul.”
In its half-year financial report, Geregu revealed that it made advance payments of N8.78 billion to the Italian firm Ansaldo Energia for the overhaul of its gas turbine. As of December 2022, the advance payment to the Italian firm was N4.616 billion.
Additionally, Geregu stated that the net proceeds from its unsecured corporate bond issued in July 2022, amounting to N40.065 billion, will be used to finance the acquisition of one of the power generation companies currently in the final stage of bidding processes by the Bureau of Public Enterprises.
Geregu reported a 13.26 percent growth in its profit after tax for the period ending on September 30, which increased from N10.029 billion to N11.359 billion. The revenue for the period rose by 42.93 percent to N55.747 billion, up from N39.003 billion in the previous year, primarily driven by increased energy sold and capacity charge.
The company’s basic earnings per share also saw an increase to N4.54 (compared to N4.1 in September 2022). This metric is based on the profit attributed to holders of the company’s 2.5 billion ordinary shares of 50 Kobo each.
