Femi Otedola makes N8.7bn payment for installation of gas turbines for power company

Ansaldo Energia in Italy received an advance payment of N8.783 billion from power provider Geregu Power Plc — owned by Femi Otedola — for the overhaul of its gas turbine as of the end of June 2023.

The Genco’s unaudited interim statement of financial status for the period ended June 30, 2023, which was submitted to the Nigerian Exchange Limited, included this disclosure.

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Advance payment to the Italian company was N4.616 billion as of December 2022.

Ansaldo Energia and Geregu agreed to a three-year, €32 million contract in April 2022 to refurbish the 435 MW power facility in Ajaokuta, Kogi State, Nigeria.

The three-year contract included the supply of spare parts which would be entirely manufactured by Ansaldo Energia in Italy, and the maintenance services, which would be performed by its subsidiary Ansaldo Energia Nigeria, based in Lagos. Activities would start in early 2023.

According to Geregu’s financials, the major overhaul of the gas turbine was scheduled for Q3, 2023.

Based on reports, this contract marked Ansaldo Energia’s first foray into the electricity sector of Nigeria. For Geregu Power, this represents the second major overhaul since the acquisition of the plant by Amperion Power Distribution.

Meanwhile, the revenue of Geregu grew by 2.65 per cent to N34.69bn in the first half of 2023 compared to N33.8bn recorded in the same period in the previous year. Profits, however, dipped by 11.52 per cent to N8.05bn in contrast to N9.10bn recorded as of June 30, 2022.

The total assets of the power company also experienced a dip as it stood at N155.48bn at the end of June 30, 2023, compared to N174.03bn at the end of December 2022, marking a 10.66 per cent depreciation.