October 25, (THEWILL) – Geregu Power Plc revenue fell 78.71 percent to N18.66 billion in the first half of 2026 from N87.63 billion a year earlier, while profit after tax plunged 87.65 percent to N2.50 billion from N20.28 billion.
The decline was concentrated in the second quarter, when revenue collapsed to N419.1 million from N55.87 billion in Q2 2025, a fall of more than 99 percent. Geregu generated approximately N18.24 billion in Q1 2026, meaning almost all its half-year revenue was recorded before the second-quarter contraction.
Profit before tax fell 86.49 percent to N3.57 billion from N26.44 billion, while gross profit declined 80.62 percent to N6.93 billion from N35.75 billion. Net profit margin narrowed to 13.45 percent from 23.13 percent, showing that the company retained a smaller share of revenue as profit despite remaining profitable in the half-year period.
The downturn coincided with a turbine maintenance programme reportedly costing N61.47 billion. That amount was equivalent to about 89 percent of the N68.97 billion year-on-year revenue decline. However, the company’s published figures do not quantify the programme’s impact on electricity generation or revenue, and the cost itself does not establish that maintenance alone caused the fall.
The maintenance programme reportedly involved a major turbine overhaul, which can reduce available generating capacity while equipment is offline. For a power producer, lower availability can reduce electricity dispatched and revenue earned. But without quarterly data on generation, plant availability and dispatch, it is not possible to determine how much of the revenue collapse resulted from the overhaul, gas supply constraints or other operating factors.
The timing of the downturn is particularly stark: revenue of N419.1 million in Q2 2026 was less than one percent of the N55.87 billion recorded in the same quarter a year earlier. The company’s next disclosures will need to show whether generation and revenue recovered after the maintenance work, rather than relying solely on explanations of the programme’s cost.
Liquidity is another concern. At March 31, 2026, Geregu reported N200.26 billion in trade and other receivables against N29.37 billion in cash. Receivables were therefore 6.8 times its cash balance. These are first-quarter figures, not June-end balances, and do not establish how much of the receivables had been collected by the end of the half-year.
The half-year results also included a N16.12 billion reversal of impairment on financial assets. The reversal affected reported earnings, but does not establish that customers paid outstanding debts or that operating cash flow improved. A detailed cash-flow statement and updated receivables breakdown would help show how much reported revenue translated into cash available for operations and debt service.
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The company’s bond default brought those questions into sharper focus. Geregu missed the eighth coupon payment and fourth scheduled principal repayment on its N40.085 billion Series 1 senior unsecured bond. Issued in July 2022 under the company’s debt issuance programme, the bond carries a 14.5 percent coupon and is due to mature in July 2029. FMDQ Securities Exchange classified the instrument as being in credit default after the missed payments.
Geregu subsequently paid approximately N6.03 billion to the bond trustees on August 20, covering the overdue coupon and part-principal repayment. The payment addressed the missed obligation, but does not by itself explain why the payment was missed or establish the company’s capacity to meet future instalments on schedule.
Agusto & Co withdrew its A- rating on Geregu Power and the bond following the default, citing insufficient reliable information to maintain its credit opinion. The agency said management had disclosed that previously issued financial statements were undergoing independent verification. GCR Ratings also downgraded the company and bond to D(NG) following the missed payments, before suspending the issuer ratings later in August.
The combination of the revenue collapse, high receivables and bond default raises questions about the relationship between accounting earnings and cash available to meet obligations. Although Geregu remained profitable in the first half, profit alone does not show whether enough cash was available when the bond payment fell due.
Investors will need updated revenue and generation figures, June-end cash and receivables balances, the outcome of the financial-statement review and evidence that scheduled debt repayments have resumed. Those disclosures will help establish whether the second-quarter contraction was a temporary operational disruption or part of a more persistent liquidity and reporting problem.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
