Transcorp Power Surges in Post-Q3 Investors’ Earnings Reactions

Transcorp Power Surges in Post-Q3 Investors’ Earnings Reactions

Transcorp Power Plc’s 7.5 billion shares outstanding were priced higher by about 9% to N2.565 trillion in the Nigerian Exchange as value hunters staked bets on the company’s after-earnings release.

Data from the Nigerian stock market showed that the company’s value increased to N2.565 trillion at the close of the trading session last week, still tracking below its highest value in 52 weeks in the local bourse.

Transcorp Power share price surged to N342 last week from N314, though trading volume were relatively low compared to its overall outstanding shares in the market.  At reference price of N314, shareholders’ year-to-date return was 12% negative, reflecting its tight trading activities.

Three key shareholders are in charge of 89.24% of Transcorp Power Plc shares outstanding as of September 2025, according to details obtained from the members register.

MarketForces Africa review shows that Transnational Incorporations held a 50.99% interest in the power-generating company. Other influential shareholders are Rich Point Limited (32.25%) and Woodrock Energy Resources Limited (6%).

The company met the free float requirement as at 30 September 2025 with 756,965,129 shares, which was 10.09% of its shareholding valued at ₦237,687,050,506 on that date.

Transcorp Power grew its bottom line by double digits in the first nine months of operation in 2025, details obtained from its financial results highlighted.

Its pretax profit surged by 12.4% year on year to N91.2 billion at the end of nine months of financial year 2025. Profit after tax settled at N68.4 billion, resulting in N9.12 earnings per share, up from N7.79 in the equivalent period in 2024.

The power-generating company’s revenue surged by 38.0% year on year to N308.5 billion, driven by broad-based growth across key revenue streams, analysts said.

Revenue from capacity charges grew by 11.8% year on year at the end of the period, and the energy segment delivered +51.0% revenue growth.

Its segment analysts revealed that international sales accounted for 28.6% of total revenue, which represent a significant increase when compared with 17.5% contribution delivered in the equivalent period in 2024, reflecting rising cross-border demand.

Analysts at CardinalStone Securities Limited said this topline momentum was partly eroded by a 48.6% spike in Cost of Goods Sold to N188.9 billion, largely on account of higher natural gas and fuel costs.

Consequently, the gross margin compressed to 38.8% from 43.1% in the comparable period in 2024.   Amidst its battle against rising costs, Transcorp Power operating expenses further pressured margins, with impairment losses on financial assets rising 79.0%, and administrative expenses climbing 54.5%.

Analysts reported that the latter reflected higher spending on corporate social responsibility (N5.4 billion), management fees (N7.3 billion), and other operating expenses (N2.0 billion).

As a result, the EBIT margin moderated to 30.5% from 36.0% in 9month of 2024.

Analysts at CardinalStone Securities Limited highlighted in its report that the company’s interest income and foreign exchange gains provided modest support, owing to lower yields and the relative Naira stability during the period.

Meanwhile, Transcorp Power’s finance costs inched up by 9.2%, further pressuring profitability and resulting in a PBT margin of 29.6% as against 36.3% delivered in the equivalent period in 2024.

CardinalStone said while margin performance was softer, profitability metrics remained solid, with annualised return on asset (ROA) and return on equity (ROE) printing at 19.5% and 63.6%, respectively, though below the 28.5% and 102.2% recorded in 9M-2024, reflecting a more modest pace of bottom-line expansion. Nigeria Gains Global Investors’ Confidence, Says Uzoka-Anite