KEY POINTS
- Geregu Power Plc forecasts a profit after tax of N8.17 billion for Q2 2026, with projected revenue of N44.34 billion.
- Operational cash flow remains strong, with net cash from operations expected at N29.38 billion.
- The company plans strategic investments and dividend payments, leaving total cash balance at N49.62 billion by end of June.
Geregu Power Plc has projected a profit after tax of approximately N8.17 billion for the second quarter ending June 30, 2026, according to its earnings forecast released to the Nigerian Exchange.
The company expects to generate N44.34 billion in revenue for the period, with a projected cost of sales of N27.40 billion, resulting in a gross profit of N16.93 billion.
Further details show that administrative expenses are estimated at N2.06 billion, while impairment loss on financial assets is projected at N1.02 billion. This leaves the company with an expected operating profit of N13.86 billion for the quarter.
On the finance side, Geregu Power anticipates finance income of N1.10 billion against finance costs of N2.76 billion, giving a net finance cost of N1.66 billion. After accounting for income tax of N4.02 billion, the company expects a profit after tax of N8.17 billion.
Cash flow projections indicate robust liquidity
The company’s cash flow outlook shows strong operational liquidity. Cash receipts from energy and capacity charges are expected to total N50.99 billion, with payments to suppliers and employees estimated at N19.28 billion, leaving cash generated from operations at N31.72 billion.
After paying income taxes of N2.34 billion, net cash from operations is projected at N29.38 billion. Geregu Power plans to allocate part of its cash toward investments and financing obligations, including N3.58 billion for a major overhaul project and N53 million for intangible assets.
The company expects interest income from investments to reach N1.27 billion. In terms of financing, it plans to pay N1.59 billion in interest on term loans and N22.5 billion in dividends, resulting in net cash used in financing activities of N24.09 billion.
Following projected operations, investments, and financing activities, Geregu Power expects a net increase in cash and cash equivalents of N2.94 billion.
This would bring its total cash balance to about N49.62 billion by June 30, 2026, up from N46.68 billion at the start of April, highlighting strong liquidity and financial stability for the quarter.
