Transcorp Jumps 8% on Post-Earnings Interim Dividend Bets
Transnational Corporation Plc (NGX: Transcorp) rose by about 8% on post-earnings buying momentum despite a negative trading posture on the Nigerian Exchange, outperforming key market indicators.
The company’s shareholders and investors seem to look past the Group’s weaker earnings performance due to the Board’s decision to pay N0.40 kobo as an interim dividend for the first half of 2026.
Details from the Nigerian bourse showed that Transcorp share price closed at N42 on Friday, up by 7.6% from N39.5 at the beginning of the trading session last week.
The stock attracted increased bets from investors as buy-side market actors looked past the company’s weaker revenue performance in the first half of 2026.
In its half-year results, Transcorp Plc reported a 16.6% year-on-year decline in profit after tax (PAT) to N54.4 billion, driven by weaker revenue performance across power and Hotels verticals.
The company’s revenue was down 13.4% year-on-year to N245.1 billion from N279 billion in the equivalent period in 2025.
Specifically, Transcorp Power and TransAfam combined revenue fell by 5.8% year-on-year to N229.0 billion, underpinned by sector-wide power infrastructure constraints, analysts said.
Similarly, hospitality revenues declined by 5.3% year-on-year to N44.4 billion, driven by weaker event centre and food & beverage revenues. In the period, the group’s cost of sales fell by 11.4% to N131.8 billion as a result of lower natural gas and fuel costs.
Details from the group’s unaudited financial statement showed the group’s gross margin softened to 45.4% from 46.7% in the equivalent period in 2025. In the period, operating expenses went down by 23.3% to N30.8 billion.
Amidst this rough patch, Transcorp Plc’s bottom line was bolstered by a N4.5 billion writeback from previous impairments on legacy NBET receivables, though insufficient to reverse the negative tide.
The group’s net finance cost eased by 9.8% to N5.7 billion primarily on the back of a lower interest expense on loans. Hence, net profit declined to N54.4 billion in H1-2020 from N65.2 billion in the equivalent period in 2025.
Overall, the group’s earnings per share (EPS) fell by 20.7% year on year to N3.23. To maintain the dividend payment policy, the company proposed an interim dividend of N0.40.
The market value of Transcorp Plc, with 10.161 billion outstanding shares on the Nigerian Exchange, rose by about 8% in the week to N426.803 billion at the close of the final trading session for July.
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