Transcorp Power's nine-month profit surges to over $35 million

Omokolade Ajayi -
Key Points
  • Transcorp Power reported a 184% profit surge to N58.42 billion ($35.74 million) for the first nine months of 2024, driven by strong revenue growth.
  • Revenue soared 152.8%, rising from N88.44 billion ($54.1 million) in 2023 to N223.56 billion ($136.8 million) by the end of September 2024.
  • Transcorp Power holds 15.5% of Nigeria’s power generation capacity with 2,000 MW, solidifying its leadership in the energy sector through strategic acquisitions.

Transcorp Power, one of the power arms of Transcorp Group, a diversified conglomerate led by Nigerian businessman Tony Elumelu, reported a sharp increase in profit for the first nine months of 2024, with earnings surpassing $35 million. 

According to the company's unaudited financial statements for the period ending Sept. 30, 2024, Transcorp Power recorded a profit of N58.42 billion ($35.74 million), up from N20.44 billion ($12.5 million) during the same period in 2023. This significant 184-percent surge reflects the company's growing market dominance and strong revenue performance.

Revenue growth boosts profit

Transcorp Power’s revenue skyrocketed by 152.8 percent, driven by a substantial increase in contracts with both local and international customers. Revenue grew from N88.44 billion ($54.1 million) in 2023 to N223.56 billion ($136.8 million) by the end of September 2024.

Local revenue more than doubled, increasing from N77.19 billion ($47.22 million) to N184.35 billion ($112.8 million). International contracts also saw a dramatic rise, climbing from N11.25 billion ($6.9 million) to N39.2 billion ($23.98 million).

Additionally, Transcorp Power benefited from higher income through capacity charges, which rose to N74.15 billion ($45.4 million) from N31.93 billion ($19.54 million) in the previous year. Revenue from energy delivered nearly tripled, reaching N149.39 billion ($91.46 million), compared to N56.49 billion ($34.56 million) in 2023.

Dominance in Nigeria’s power sector

With an installed capacity of 2,000 MW, Transcorp Power represents 15.5 percent of Nigeria’s total power generation capacity.

The company’s leadership in the sector stems from its strategic acquisitions of the Ughelli Power Plant in 2013 and the Afam Power Plant in 2020, solidifying its position in the country’s energy supply chain.

The company’s impressive financial performance has also led to a significant increase in its asset base, which grew by 62 percent, rising from N223.39 billion ($136.63 million) in December 2023 to N362.5 billion ($221.7 million) by the end of September 2024.

Shareholders' funds surged by more than 80 percent, climbing from N57.86 billion ($35.4 million) to N105.03 billion ($64.2 million), driven by retained earnings.