Geregu to hand shareholders N22.5bn in final dividend payout

Geregu Power Plc has proposed a cash dividend of N9 per ordinary share, translating to a total payout of N22.5 billion, as the power generation company continues to reward shareholders on the back of improved earnings and a stronger balance sheet, according to its filing on the Nigerian Exchange on Monday.

The dividend, which is subject to shareholder approval at the company’s forthcoming annual general meeting (AGM), represents an increase from the N8.50 per share paid in the previous financial year, extending Geregu Power’s track record of consistent dividend growth since its listing on the local bourse.

Based on its 2.5 billion outstanding shares, the proposed payout underscores the company’s capacity to generate distributable profits despite persistent challenges in Nigeria’s power sector, including liquidity constraints and outstanding receivables owed by market operators.

According to details from the NGX report, Geregu Power’s dividend is supported by robust earnings and rising retained profits, which have strengthened its equity position. For the nine months that ended September 2025, retained earnings climbed to N55.1 billion, accounting for nearly 98 percent of shareholders’ equity, reflecting the company’s strong profit retention and capital accumulation strategy.

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While revenue growth moderated during the period by 37.38 percent to N43.83 billion from N131.47 billion, operating profit and cash flows remained resilient, enabling the board to maintain its dividend policy. The company’s relatively stable cost structure and disciplined capital management have played a key role in sustaining shareholder returns.

At the current market price, the proposed dividend implies a yield of about 0.8 percent, a modest return in percentage terms but notable given Geregu Power’s premium valuation and its positioning as one of Nigeria’s most profitable listed power generation companies.

The dividend announcement also comes amid significant changes in the company’s ownership structure. In 2025, MA’AM Energy Limited acquired majority control of Geregu Power following a landmark divestment by billionaire investor Femi Otedola, a transaction valued at about $750 million. Market watchers believe the new ownership could influence future strategic direction, including expansion plans and capital allocation priorities.

The federal government also addresses the legacy debts in the electricity market as a potential positive catalyst for power generation companies. Any improvement in sector liquidity could enhance cash flows and reduce earnings volatility for firms such as Geregu Power.

If approved at the AGM, the dividend will reinforce Geregu Power’s position as one of the Nigerian Exchange’s most consistent dividend-paying utility stocks, even as the company navigates regulatory, operational, and market-wide headwinds in the power sector.

Moyosore Adesina is a financial journalist with interests spanning across financial reporting, insurance, manufacturing sectors, fintech, and capital markets. She simplifies financial data and transform them into compelling stories that help investors and businesses make informed decisions. With a background in accounting and hands-on experience in financial analysis, she specialises in breaking down corporate earnings, industry trends, and economic indicators for readers.

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