Geregu Power Plc reported strong revenue growth in its 2025 audited financial statements with turnover rising to ₦184.94 billion from ₦137.13 billion in 2024.
Despite the solid top-line performance, the results reveal intensifying balance sheet pressure, driven by a sharp increase in receivables, higher impairment charges, and a growing reliance on short-term liabilities.
Assets Expand on Receivables Growth
Total assets increased to ₦305.01 billion as at December 31, 2025, up from ₦243.47 billion a year earlier. The expansion was largely driven by current assets, which rose to ₦241.90 billion from ₦170.80 billion.
Trade and other receivables climbed sharply to ₦201.11 billion, compared with ₦121.82 billion in 2024, highlighting continued exposure to sector-wide payment delays within Nigeria’s power value chain. While the receivables growth supported revenue recognition, it also heightened credit and collection risks.
Cash and cash equivalents declined to ₦31.85 billion from ₦39.94 billion on tighter liquidity conditions despite higher operating earnings.
Non-current assets reduced to ₦63.10 billion, down from ₦72.67 billion, largely due to depreciation of property, plant, and equipment, indicating limited capital expenditure during the year.
Equity Improves, Liabilities Rise Faster
Total equity rose to ₦58.63 billion from ₦52.56 billion, supported by retained earnings growth to ₦57.34 billion and a positive actuarial reserve of ₦33.17 million, compared with a negative position in the prior year.
However, total liabilities expanded significantly to ₦246.38 billion, from ₦190.91 billion in 2024.
Non-current liabilities declined to ₦32.21 billion from ₦47.53 billion as long-term borrowings and bond obligations declined.
In contrast, current liabilities jumped to ₦214.16 billion, up from ₦143.37 billion, driven by higher trade payables, increased tax liabilities, and rising short-term borrowings.
The shift towards short-term obligations signals increasing pressure on operating cash flows.
Costs and Impairments Pressure Margins
Cost of sales rose to ₦110.73 billion from ₦74.40 billion, growing faster than revenue and compressing gross margins. Gross profit increased to ₦74.21 billion, compared with ₦62.73 billion in the previous year.
Administrative expenses nearly doubled to ₦17.82 billion, while impairment charges on financial assets increased to ₦10.05 billion.
Operating profit still rose to ₦48.15 billion, up from ₦42.95 billion, demonstrating operational resilience despite higher overheads.
Finance Costs Increase, Profit Remains Flat
Net finance cost widened to ₦6.16 billion, compared with ₦1.69 billion in 2024, as finance costs increased and finance income declined.
Profit before tax stood at ₦41.99 billion, broadly flat compared with ₦41.27 billion a year earlier. After tax, profit for the year settled at ₦27.25 billion, slightly below ₦27.43 billion in 2024.
Earnings per share edged down to ₦10.90, from ₦10.97, reflecting stable earnings with no change in issued share capital.
Outlook
Geregu Power Plc delivered strong revenue growth in 2025 and maintained profitability in a challenging operating environment.
However, the rising concentration of receivables, higher impairment charges, and growing short-term liabilities underline persistent structural risks within the power sector.
While the reduction in long-term debt and improving equity base are positives, liquidity management and receivables recovery will remain central to sustaining cash flow stability and earnings quality in the periods ahead.