Geregu Power Plc has projected a profit after tax of about N8.17 billion for the second quarter ending June 30, 2026, according to its earnings forecast released to the Nigerian Exchange.

The company expects to generate N44.34 billion in revenue during the period, while cost of sales is projected at N27.40 billion, resulting in a gross profit of N16.93 billion.

Further details of the forecast show that administrative expenses are estimated at N2.06 billion, while impairment loss on financial assets is projected at N1.02 billion. This leaves the company with an expected operating profit of N13.86 billion for the quarter.

On the finance side, the power generation company expects finance income of N1.10 billion but anticipates finance costs of N2.76 billion, bringing its net finance cost to about N1.66 billion.

After accounting for these charges, the company projects a profit before tax of N12.20 billion, with an income tax expense of N4.02 billion, leading to a profit after tax of N8.17 billion for the quarter.

Cash flow projections also indicate strong operational liquidity during the period. The company expects cash receipts from energy and capacity charges of N50.99 billion, while payments to suppliers and employees are estimated at N19.28 billion, leaving cash generated from operations at N31.72 billion.

After paying income taxes of N2.34 billion, net cash generated from operating activities is projected at N29.38 billion.

However, the company plans to deploy part of its cash toward investment and financing obligations. It expects to spend N3.58 billion on major overhaul project finance and N53 million on intangible assets, while interest income of N1.27 billion is anticipated from investments. Overall, net cash used in investing activities is projected at N2.36 billion.

Under financing activities, the company expects to pay N1.59 billion in interest on term loans and N22.5 billion in dividends, resulting in net cash used in financing activities of N24.09 billion.

Overall, the company projects a net increase in cash and cash equivalents of N2.94 billion, bringing its total cash balance to about N49.62 billion by June 30, 2026, up from N46.68 billion at the beginning of April.