Geregu Power Plc generated its lowest revenue in three years, IgbereTV learnt on Wednesday after obtaining the company’s 2022 Full Year financials.
According to the corporate disclosure, Geregu’s revenue dropped by -32.8 per cent year-on-year to N47.61 billion in 2022, as the management couldn’t surpass the N70.95 billion generated a year before.
Ripples Nigeria gathered that the last time Geregu recorded turnover below N50 billion was in 2019 when the firm, owned by billionaire, Femi Otedola, grossed N42.16 billion.
The revenue dropped on decline in earnings from Energy sold and Capacity charge, with both raking in N30.25 billion and N17.36 billion respectively last year.
Earnings from Energy and Capacity charges in 2022 fell short of the N45.69 billion and N25.26 billion respectively grossed between January to December 2021.
What happened to Geregu’s revenue?
Geregu lost N23.33 billion or –32.8 per cent of its revenue in 2022 after a nationwide force majeure (FM) declared by Shell Petroleum Development Company Limited (SPDCL).
Force majeure is a clause in a contract that enables a company to shut down operations during a natural disaster or other unforeseeable circumstances that prevent a company or someone from fulfilling a contractual obligation. This protects the firm from lawsuits or sanctions for failing to carry out its responsibility.
Shell Petroleum had declared the force majeure on the Trans-Forcados pipeline, ceasing operation or gas supply on July 17, 2022.
This disrupted Geregu’s operation, as the power plant couldn’t receive gas supply from Shell, its major supplier, till the end of November 2022
