Last Update 09 Dec 25
NDPHC Restores 450MW to National Grid via Geregu NIPP Plant Recovery
The Niger Delta Power Holding Company (NDPHC) achieved a major operational milestone by restoring 450MW from the Geregu NIPP plant to the national grid, marking one of the most significant generation recoveries in recent years. The restoration followed a four-week extended minor inspection by Siemens Energy, aimed at improving operational reliability, efficiency, and extending the plant’s equivalent operating hours (EOH) and overall lifespan.
This milestone forms part of NDPHC’s broader turnaround strategy, which includes reviving dormant turbines, enhancing grid stability, and supporting industrial and commercial electricity demand across Nigeria.
Operational Highlights – Geregu NIPP
FacilityRestored Capacity (MW)StatusGeregu NIPP450Completed scheduled maintenance
Key Points:
- Inspection and Maintenance: Four-week minor inspection by Siemens Energy completed, optimizing performance and extending plant lifespan.
- Fleet Contribution: The restoration is part of a broader effort that has revived six previously dormant turbines across NDPHC’s fleet, enhancing total mechanical generation capacity.
- Operational Impact: 450MW restored provides a critical boost to the national grid, improving supply stability for industrial, commercial, and residential consumers.
Strategic Initiatives Related to Geregu
- Recovery of critical turbine and HRSG components at Onne Port, previously dormant for over nine years, supports operational readiness.
- Continued monitoring and maintenance protocols implemented to ensure sustained performance and minimize downtime.
- Integration with ongoing transmission and distribution projects enhances delivery of restored capacity to key industrial and commercial clusters.
Financial and Operational Impact
- Grid Contribution: 450MW significantly strengthens Nigeria’s national power supply.
- Operational Efficiency: Post-maintenance improvements reduce future maintenance costs and optimize output.
- Strategic Alignment: Restoration aligns with NDPHC’s mandate to reactivate dormant capacity and support national power reliability goals.
- Revenue Potential: Reliable operation of Geregu contributes to improved generation output, supporting future commercial and industrial off-take agreements.
Strategic Insights
- Capacity Revival: Geregu restoration demonstrates NDPHC’s ability to bring dormant assets online efficiently.
- Grid Reliability: Addition of 450MW enhances stability and supply predictability for industrial and commercial sectors.
- Operational Excellence: Siemens-led inspection and turbine maintenance optimize plant efficiency and extend operational life.
- Long-Term Growth: Operational improvements at Geregu serve as a model for restoring other dormant assets across the NDPHC portfolio.
Strengths
- Significant MW addition to national grid from a single, high-capacity plant.
- Proven operational protocols for turbine maintenance and efficiency improvements.
- Reinforces NDPHC’s reputation for restoring and stabilizing critical national power assets.
Weaknesses
- Restoration limited to Geregu; other plants and turbines still require recovery to maximize grid impact.
- Near-term revenue and commercial returns from restored capacity depend on consistent gas supply and grid integration.
Outlook – 2026
- Geregu NIPP to continue operating at restored capacity, ensuring 450MW contribution to the national grid.
- Further monitoring and maintenance planned to sustain operational efficiency and reliability.
- Restoration serves as a template for other NDPHC facilities, including Gbarain and additional dormant turbines, which could add incremental MWs to the national grid.
- Key risks include gas supply interruptions, grid constraints, and unforeseen maintenance requirements.
Analyst View
“The restoration of 450MW from Geregu NIPP underscores NDPHC’s capacity to revive critical generation assets efficiently. This recovery not only strengthens the national grid but also signals the company’s strategic capability to enhance operational reliability and support Nigeria’s industrial and commercial electricity demand.”
Conclusion
NDPHC’s Geregu NIPP plant restoration adds 450MW to Nigeria’s national grid, significantly bolstering power supply reliability. Operational improvements, extended plant lifespan, and strategic maintenance protocols demonstrate the company’s commitment to reactivating dormant capacity and stabilizing national power infrastructure.
Geregu Power Plc delivered another period of solid earnings performance in 9M 2025, maintaining strong profitability and robust operating margins despite rising costs and working capital pressures. Revenue increased 17% YoY to ₦131.5 billion, reflecting higher energy generation and improved operational efficiency. However, cash flow constraints driven by receivable build-up and debt repayments remain a critical watchpoint.
Geregu continues to showcase resilience in Nigeria’s challenging power sector, leveraging its efficient plant operations and disciplined cost structure to sustain profitability. The company’s long-term fundamentals are underpinned by its dominant market share, strong asset base, and growing investor confidence following its successful public listing.
That said, short-term risks linked to liquidity strain, sectoral receivable bottlenecks, and rising finance costs could limit near-term valuation upside.
Financial Performance Overview
Revenue and Gross Profit
Revenue rose to ₦131.47 billion (9M 2024: ₦112.58 billion), driven by increased energy output from the Geregu I and II plants and improved dispatch levels. Cost of sales climbed 35% YoY to ₦78.47 billion, reflecting higher gas costs and maintenance expenses. Consequently, gross profit expanded to ₦53.0 billion, though the gross margin moderated slightly to 40.3% (from 48.5% in 9M 2024) as cost inflation offset revenue gains.
Operating Profit
Administrative expenses and impairment charges rose moderately, reflecting inflationary effects and prudential provisioning on receivables. Despite this, Geregu reported an operating profit of ₦42.23 billion, up marginally from ₦42.0 billion in 2024, highlighting operational efficiency.
Operating margin stood at 32.1%, underscoring management’s cost discipline and ability to maintain profitability even amid sector inefficiencies.
Earnings and Profitability
Finance income dropped to ₦5.30 billion (9M 2024: ₦6.58 billion) due to lower yields on cash placements, while finance costs rose to ₦10.07 billion, driven by higher interest rates and bond obligations.
Nevertheless, Geregu maintained strong profitability, posting a Profit Before Tax (PBT) of ₦37.46 billion, marginally up from ₦36.26 billion in the prior year. After accounting for tax expense of ₦12.36 billion, Profit After Tax (PAT) came in at ₦25.10 billion, representing 3.8% YoY growth.
Earnings per share (EPS) rose to ₦10.04 from ₦9.68 in 9M 2024, affirming consistent shareholder returns.
Balance Sheet Strength and Capital Structure
Geregu maintains a strong asset base totaling ₦243.47 billion (vs ₦273.15 billion as of Dec 2024), reflecting efficient capital allocation and modest leverage.
- Total equity increased to ₦56.41 billion from ₦52.56 billion, driven by retained earnings growth.
- Borrowings and bond liabilities declined to ₦57.7 billion from ₦65.1 billion, demonstrating proactive debt repayment.
- However, trade and other payables surged to ₦119.7 billion, reflecting deferred payments to suppliers and unsettled transmission obligations within the sector.
Current ratio stood at 1.14x, slightly lower than FY2024 (1.19x), indicating tighter short-term liquidity conditions.
Cash Flow Performance
Operating Cash Flow
Operating cash generation remained positive at ₦24.38 billion, although it declined from ₦31.57 billion in 2024, largely due to a ₦53.22 billion increase in trade receivables — a recurring issue across Nigeria’s power sector due to delays in NBET payments.
Investing and Financing Activities
Geregu maintained disciplined capital expenditure, investing only ₦1.17 billion in plant and equipment, reflecting a conservative reinvestment approach. Interest income (₦4.34 billion) supported net cash from investing activities of ₦3.13 billion.
Conversely, significant cash outflows were recorded in financing activities — ₦39.33 billion — due to ₦21.25 billion in dividend payments, loan repayments, and bond redemptions.
Net cash and equivalents declined to ₦28.10 billion from ₦39.94 billion as of December 2024, reinforcing the need for tighter liquidity management.
Strengths
- Resilient Profitability: Consistent double-digit profit margins despite rising costs.
- Strong Operational Efficiency: Sustained generation uptime and disciplined expense control.
- Reduced Debt Burden: Ongoing deleveraging enhances financial flexibility.
- Attractive Dividend Policy: Regular payouts reinforce investor confidence.
- Efficient Asset Base: Low CapEx intensity supports cash retention.
Weaknesses / Risks
- Liquidity Pressure: High receivables and sector payment delays strain working capital.
- Gas Supply Dependence: Fuel cost volatility poses recurring margin risk.
- Interest Rate Sensitivity: Elevated borrowing costs affect net interest income.
- Regulatory Risk: Dependence on NBET and policy reforms within the power sector.
- Declining Cash Balance: Persistent financing outflows may tighten liquidity further.
Strategic Outlook
Looking ahead, Geregu’s outlook remains fundamentally stable, supported by:
- Consistent dispatch performance from its 435MW Geregu I plant.
- Ongoing efficiency improvements through technology and maintenance optimization.
- Strong backing from key shareholders and credible corporate governance.
Medium-term growth could stem from expansion projects or renewable diversification, although current sector liquidity challenges may delay aggressive capital deployment.
Management’s focus on receivable recovery and cash flow optimization will be key to sustaining dividend policy and balance sheet strength into FY2026.
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Disclaimer
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