Table of Contents
Key Point
- Profit increased from $6.9 million to $23 million, significantly surpassing analysts’ expectations.
- Operational excellence drives revenue up from N55.9 billion ($34.8 million) to N135.4 billion ($84.5 million).
- Market capitalization surges to $1.75 billion, with total assets reaching $202 million as of June 30, 2024.
Transcorp Power, one of the power subsidiaries of Transcorp Group, a leading diversified conglomerate led by Nigerian businessman Tony Elumelu, reported a significant profit surge in the first half of 2024, surpassing analysts’ expectations. The power company’s profit soared to $23 million, marking a 233 percent increase from $6.9 million in the same period last year.
Revenue growth highlights operational excellence
The company’s revenue for the first half of 2024 rose by 142 percent to N135.4 billion ($84.5 million), up from N55.9 billion ($34.8 million) in the first half of 2023.
Revenue from capacity charges increased from N19.24 billion ($12 million) to N42.07 billion ($26.2 million), while revenue from energy delivered surged from N36.68 billion ($22.9 million) to N93.37 billion ($58.25 million).
Strategic vision and operational excellence
Peter Ikenga, CEO of Transcorp Power, credited the outstanding performance to the company’s strategic vision and pursuit of excellence. “This positive performance across key indicators emphasizes our agility and ability to navigate complex market dynamics effectively,” said Ikenga. He reaffirmed the company’s commitment to bridging Nigeria’s energy gap through ongoing maintenance programs and necessary investments.
Emmanuel Nnorom, Chairman of Transcorp Power, echoed these sentiments, highlighting the company’s operational excellence and resilience. “The interim dividend of $0.00093 is a testament to our commitment to create value and spread wealth to all our shareholders,” Nnorom stated. He assured shareholders of sustained high performance and superior returns.
Continued growth and market impact
Transcorp Power, with an installed capacity of around 2,000 MW, contributes significantly to Nigeria’s electricity grid, representing 15.5 percent of the nation’s total installed capacity.
The company’s market capitalization reached $1.75 billion, up from its listed market value of $1.12 billion. Total assets grew by 45 percent to $202 million as of June 30, 2024, while shareholders’ funds increased by 64 percent to $59.1 million, boosted by retained earnings.
Transcorp Power’s journey in Nigeria’s energy sector began in 2013 with the acquisition of the Ughelli Power Plant and expanded in 2020 with the acquisition of the Afam Power Plant, consolidating its dominance in the power supply chain. The latest financial performance underscores its pivotal role in ensuring the financial stability of Transcorp Group.
