January 21, (THEWILL) — Geregu Power Plc’s board has proposed a ₦9 per share final dividend, translating to a ₦22.5 billion payout for the 2025 financial year, even as the company contends with thinner margins and weaker cash generation, according to its audited results. 
The dividend proposal, which requires shareholder approval at the upcoming AGM, represents an increase from the ₦8.50 per share paid for 2024. 
Geregu’s 2025 financials paint a mixed picture. The company reported ₦184.94 billion in revenue, up 34.9% from ₦137.13 billion in 2024, driven largely by stronger energy sales and capacity charges.
Gross profit improved to ₦74.2 billion, though gross margins slipped to around 40%, reflecting higher operational costs and gas supply expenses.
Net profit after tax remained largely flat at around ₦27.3 billion, against ₦27.4 billion a year earlier. 
Despite the revenue growth, cash flows suggest stress.
Net cash from operating activities was ₦19.6 billion and free cash flow was ₦18.2 billion, both below the dividend payout, indicating the company may need to draw on reserves or borrow to fund distributions.
Cash and cash equivalents also fell by about ₦13.5 billion year-on-year, pointing to working capital pressures. 
Industry watchers say the dividend underscores investor expectations for returns but raises questions about capital discipline and sustainability in a capital-intensive sector where liquidity and cash conversion remain challenged.
Ogochukwu Onwaeze
