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Geregu Power Plc has forecast a profit after tax of N450.3 million on revenue of N10.95 billion for the fourth quarter ending December 31, 2026. The power company expects gross profit of N4.38 billion from the projected revenue, after accounting for cost of sales of N6.57 billion. It also projects operating profit of N1.58 billion during the three-month period.
The company’s earnings and cash-flow projections filed on tbt Nigerian Exchange Limited (NGX) shows that finance costs are expected to put pressure on the company’s pre-tax earnings in the quarter. Geregu Power projects finance income of N1.27 billion against finance costs of N2.19 billion, resulting in a net finance cost of N911.45 million. Consequently, profit before income tax is projected at N672.17 million, while income tax expense is estimated at N221.85 million, leaving profit for the period at N450.32 million.
The company’s cash-flow projection indicates stronger cash generation from operations than the projected accounting profit. Geregu Power expects to generate N14.25 billion from operations during the quarter, supported by projected cash receipts of N24.85 billion from energy and capacity charges.
Against this, cash payments to suppliers and employees are projected at N10.59 billion, while income taxes paid are estimated at N8.34 billion. This would leave net cash generated from operating activities at N5.91 billion.
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The company is also projecting N3.58 billion in spending on its major overhaul project during the quarter, alongside N53 million for the purchase of intangible assets. Interest income received is forecast at N1.27 billion, resulting in net cash used in investing activities of N2.36 billion. On financing activities, Geregu Power expects to pay N1.59 billion in interest on its term loan, with the same amount projected as net cash used in financing activities. After taking the projected operating, investing and financing cash flows into account, the company expects a net increase of N1.97 billion in cash and cash equivalents during the quarter.
Geregu Power’s cash and cash equivalents are projected to rise from N48.35 billion at October 1 to N50.32 billion by December 31, 2026.
The company also estimates operating cash flow before working-capital changes at N4.43 billion for the quarter, indicating that its projected cash position will remain positive despite the planned overhaul expenditure and interest payments.
