Transcorp Power Q3 earnings soar 153% to N88.4bn

Business a.m.

Transcorp Power Plc, a subsidiary of Transcorp Group, has reported a  revenue growth of 153 percent year-on-year for the third quarter ending September 30, 2024. 

The company’s revenue increased from N88.4 billion in Q3 2023 to  N223.6 billion in Q3 2024, signifying a robust performance and rapid expansion of the business.

Transcorp Power’s unaudited results for the third quarter, filed with the Nigerian Exchange (NGX), showed an almost two-fold increase in profit before tax. 

The increase in profitability saw the power company record N81.1 billion in profit before tax for the period, a 198 percent surge  jump from N27.3 billion in the same period in 2023.

Furthermore, Transcorp Power Plc reported a 153 percent growth in revenue in the third quarter of 2024, with Q3 revenue reaching N223.6 billion, up from N88.4 billion in the same period in 2023.

The company’s profitability also saw a 186 percent increase in Profit After Tax, rising to N58.5 billion in Q3 2024, from N20.4 billion in Q3 2023, reflecting the company’s financial strength and successful operations.

Continuing the upward trend, total assets of the company increased significantly by 62 percent to N362.5 billion as of September 30, 2024, from N223.4 billion in the financial year 2023.

The company’s net finance costs also saw a sharp decline of 95 percent, decreasing to N538.3 million in Q3 2024, compared to N10.4 billion in the same period in 2023, indicating a significant improvement in its financial management and a reduction in debt-servicing costs.

The company’s financial performance was strengthened by a number of key operating ratios. The net profit margin for the period stood at a healthy 36.3 percent, while return on equity and return on assets were 56 percent and 16 percent, respectively, reflecting a strong growth in profitability.

Shareholders’ funds also recorded an increase of 82 percent, reaching N105 billion as of September 30, 2024, compared to N57.9 billion in the previous financial year 2023.

Commenting on the results, Evans Okpogoro,  the chief financial officer, Transcorp Power,expressed strong confidence in the company’s financial trajectory, stating:

“We are proud to announce significant growth across all our metrics. Our commitment to disciplined cost management and operational efficiency has not only enabled us to sustain robust margins but has also positioned us to outperform industry averages in key areas. 

“This achievement reflects our strategic focus and dedication to excellence, and positioning as a leader in Nigeria’s power sector.”

Peter Ikenga, MD/CEO, Transcorp Power Plc, attributed the company’s quarterly performance to a strategic vision, hard work, and relentless pursuit of operational excellence.

Ikenga stated: “Despite the distribution and transmission infrastructural challenges faced in the Power Sector, Transcorp Power has once again demonstrated exceptional financial growth, as reflected in our impressive results. We continue to strive to bridge the energy gap in Nigeria, in line with our purpose to improve lives. 

“I am proud to report that we have sustained our remarkable growth trajectory and maintained our position as a leading contributor to the country’s power sector, accounting for approximately 10% of total power generated on the national grid. 

“As the market transitions into the bilateral contracts, as contained in the Electricity Act, we are optimistic about sustaining the momentum by capitalizing on more strategic investment opportunities and providing additional value to our shareholders.”