Geregu Power Plc which is the first and only power generating company to list on the Nigerian Exchange Limited, has generated a revenue of N39bn in 2022.
The results showed a revenue of N39bn in 2022, compared with N54bn in the corresponding period of 2021.
The dip according to the company results from a nationwide force majeure declared by Shell Petroleum Development Company Limited on the Forcados oil terminal pipeline, gas supplies to the plant by Its primary gas supplier was largely impacted in the third quarter.
Commenting on the revenue shortfall, the company explained in the unaudited financial statements for the third quarter of 2022, that the nationwide Force Majeure played a negative role.
It said, “The decline in revenue was largely due to gas supply constraints in Q3, 2022, which eventually led to the drop in the capacity delivered and energy sent out of 1314439Mwh as at 30 September 2022 as against Capacity delivered and Energy sent out of 1855920Mwh as at 30 September 2021.”
In cushioning the effect of the shortfall, the company said it adopted an effective cost saving strategy that saw administrative cost reduced from N10.9bn to N2.9bn in 2022.
As a result, the operating profit stood higher at N16bn, up from N15.1bn in the nine months of 2021.