Transcorp Power Grows Profit by 233%, Declares Interim Dividend
Transcorp Power Plc grew its profit after tax by 233% to N32.77 billion in the first half of 2024 from N11.043 billion in the comparable period in 2023, following a sharp revenue growth, details from its regulatory filing on the Nigerian Exchange (NGX) showed.
Due to improved business activities, Transcorp Power’s revenue from contracts with its customers grew by 142% year on year, from N55.9 billion in the first half of 2023 to N135.4 billion 12 months later.
IThe power generation company’s revenue breakdown revealed a sharp increase in income from capacity charges and energy delivered. Revenue generated from capacity charges climbed by about 119% year on year to N42.065 billion in 12 months from N19.243 billion in the first half of 2023.
At the same time, the company recorded N93.368 billion in revenue from energy delivered in the period, up by 155% year on year from N36.681 billion in the comparable period in 2023.
The significant surge in the company’s profit before tax obligations was fueled by FX gains, which have positive impacts on the company’s net finance costs. Transcorp Power Plc’s net finance cost fell by 37% to N1.3 billion, a reduction from N2.1 billion over 12 months.
The company’s reported more than N1.1 billion gain from FX denominted assets versus FX losses of more than N4.7 billion in the comparable period in 2023. Both finance income and costs grew in the first half amidst an elevated interest rate environment.
Peter Ikenga, Transcorp Power MD/CEO attributes earnings surge to the company’s strategic vision and relentless pursuit of excellence.
“This positive performance across key indicators emphasizes our agility and ability to navigate complex market dynamics effectively. We recognize the criticality of power to unlocking the value in our dear country, Nigeria and we remain committed towards our goal of bridging the energy gap in our country. We will continue to execute our maintenance program and make the necessary investments to increase our power generating capabilities” he said.
Also, Emmanuel Nnorom, Chairman, Board of Directors noted that Transcorp Power’s impressive results in the first half of the year underscores its resilience and operational excellence while navigating the complex power landscape.
He added, “The interim dividend of N1.50 is a testament to our commitment to create value and spread wealth to all our shareholders. The half-year performance also further reinforces our consistent upward growth trajectory year on year and confidence that Transcorp Power will continue to deliver exceptional performance in the future.
“Our shareholders are assured of a sustained high level of performance and superior returns for their investment in Transcorp Power”.
Transcorp Power became listed on the Nigerian Exchange (NGX) earlier this year, attaining a market capitalization of N2.8 trillion, up from its listed market value of N1.8 trillion. #Transcorp Power Grows Profit by 233%, Declares Interim Dividend Nigeria, Angola Inflation Highest in Frontier Markets -Report
