Transcorp Power Plc, a subsidiary of the Transcorp Group, has announced remarkable financial results for the fiscal year 2024, showcasing substantial growth in revenue and profitability. This performance underscores the company’s strategic operational management and successful execution of its business plan. The company’s audited results, released to the Nigerian Exchange, revealed a 115% surge in revenue, reaching N305.9 billion compared to N142.1 billion in 2023. This impressive growth is accompanied by a significant 165% increase in profit after tax, rising from N30.2 billion in 2023 to N80 billion in 2024. These figures demonstrate Transcorp Power’s robust financial health and its increasing contribution to the Nigerian power sector. Furthermore, the company’s gross profit witnessed an 89% increase, climbing from N75.4 billion to N142.2 billion, further solidifying its strong financial standing.
Transcorp Power’s financial stability is further reinforced by a significant improvement in its gearing ratio. Following the complete repayment of a US dollar loan, the gearing ratio decreased from 64.48% in 2023 to 29.70% in 2024. This reduction indicates a healthier financial structure and reduced reliance on debt financing. The company’s efficiency in generating income is evident in the improved return on assets and return on equity. The return on assets rose from 13.53% to 20.17%, while the return on equity increased from 52.25% to 63.19% year-over-year. These figures highlight Transcorp Power’s ability to effectively utilize its assets and equity to generate profits. This positive financial performance positions the company for continued growth and further investments in the power sector.
Demonstrating its commitment to rewarding shareholders, Transcorp Power’s Board of Directors proposed a final dividend of N3.50k per share. This, combined with the interim dividend of N1.50k paid earlier, brings the total dividend for the 2024 financial year to N5.00k per share. This substantial dividend payout underscores the company’s strong financial position and its dedication to sharing its success with investors. It reflects the company’s confidence in its future prospects and its commitment to providing consistent returns to its shareholders. This move is expected to further strengthen investor confidence in Transcorp Power and attract further investment.
Emmanuel Nnorom, Chairman of Transcorp Power, emphasized the company’s dedication to creating value for all stakeholders. He highlighted Transcorp Power’s significant role in addressing Nigeria’s energy deficit and contributing to the nation’s economic development. Nnorom expressed pride in the company’s resilience in navigating a challenging market and macroeconomic environment, and expressed optimism for the future. This commitment to stakeholder value underscores the company’s broader impact beyond financial performance, encompassing its contribution to national development and its responsibility to its investors.
Peter Ikenga, CEO of Transcorp Power, attributed the exceptional financial results to strategic investments and a focused approach to enhancing operational efficiencies. He reiterated the company’s commitment to financial discipline and delivering exceptional value to stakeholders. Since its public listing, Transcorp Power has consistently demonstrated growth across all financial metrics, aligning with its mission of value creation. Ikenga expressed confidence in the company’s ability to maintain this trajectory of success, suggesting a positive outlook for future performance. This consistent growth trajectory indicates the effectiveness of the company’s long-term strategy and its ability to adapt to changing market dynamics.
Transcorp Power Plc, a key component of the Transcorp Group, is a major player in Nigeria’s power sector. Along with Transafam Power Limited, the company contributes over 20% of Nigeria’s installed power capacity, playing a vital role in meeting the nation’s energy demands. Transcorp Group operates the 972-megawatt Ughelli Power Plant and the 966-megawatt Afam Power Plant, collectively representing a significant portion of Nigeria’s power generation infrastructure. This substantial capacity positions Transcorp Power as a critical player in Nigeria’s efforts to improve electricity supply and support economic growth. The company’s continued investments and operational efficiency are expected to further enhance its contribution to the national power grid and drive further growth.
