Geregu Power's Revenue Drops 79% Amid Maintenance Costs

Geregu Power Plc reported a revenue decline of 78.71 percent to N18.66 billion in the first half of 2026, down from N87.63 billion the previous year. Profit after tax also plummeted by 87.65 percent to N2.50 billion from N20.28 billion.

The most significant decline occurred in Q2 2026, where revenue fell to N419.1 million from N55.87 billion in Q2 2025, a drop of over 99 percent. In Q1 2026, Geregu generated approximately N18.24 billion, indicating that nearly all half-year revenue was earned before the second-quarter contraction.

The profit before tax decreased by 86.49 percent to N3.57 billion, and gross profit fell 80.62 percent to N6.93 billion. The company's net profit margin narrowed to 13.45 percent from 23.13 percent.

This downturn coincided with a turbine maintenance program costing N61.47 billion, which was about 89 percent of the N68.97 billion year-on-year revenue decline. However, the impact of this maintenance on electricity generation and revenue remains unclear.

Additionally, as of March 31, 2026, Geregu reported N200.26 billion in trade and other receivables against N29.37 billion in cash, raising liquidity concerns.