Transcorp Power Plc has reported profit after tax that surged by 233 percent to N36.77 billion as at Half-Year (H1) June 2024 from N11.04 billion the previous year, while declaring a N1.50 interim dividends to the delight of investors.
Revenue from contracts with customers spiked by 142 percent to N135.44 billion in the period under review from N55.93 billion the previous year.
The growth at the top line (revenue) was largely driven by a 154.5 percent surge in sales from energy delivered to N93.36 billion.
On Friday, August 16, 2024, dividends will be paid electronically to shareholders whose names appear on the Register of Members as at Tuesday, August 6, 2024 and who have completed the edividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.
“The interim dividend of N1.50 is a testament to our commitment to create value and spread wealth to all our shareholders. The half year performance also further reinforces our consistent upward growth trajectory year on year and confidence that Transcorp Power will continue to deliver exceptional performance in the future. Our shareholders are assured of sustained high level of performance and superior returns for their investment in Transcorp Power,” Emmanuel Nnorom, Chairman, Board of Directors, said.
Transcorp Power seeks to boost earnings and deliver superior returns to shareholders
In 2020, Transcorp Power Plc initiated power exports beyond the borders of Nigeria, extending its reach to neighboring West African states, notably Benin Republic.
Analysts are optimistic the company will maintain the earnings growth momentum this year given positive fundamentals.
Transcorp power is spending over N44bn ($44m) in capex in 2024 to help achieve 740 megawatts (mw) of available capacity by 2024 year end, with 240mw set to be added by this summer. The firm is in talks with 3 Discos to help receive excess power it produces that the national grid cannot handle.
The firm is investing to boost cost optimization, improve gas usage and efficiency, and boosting capex on turbines maintenance.
Its play in West African power pool which brings in 18% of revenue will help to reduce FX risk. The company currently accounts for 7.0% of Nigeria’s installed grid capacity but generates 10.0% of the country’s power needs, with its leadership position in the West African Power Pool (WAPP) and planned strategic alliances with DISCOs, eligible customers, and state governments leaving legroom for output growth in the near term.
Transcorp Power has grown its profit by over 40% compound annual growth rate (CAGR) in the past 4-years and expects its annual revenues to surge to over N500 billion by 2031, from N142 billion in 2023.
Income tax paid surges 173%
Transcorp Power paid N14.19 billion as income tax in the Half Year period to June 2024. This compares to the N5.19 billion paid in the earlier period.
Total Assets also grew by 45% to N322.9 billion as of June 30th, 2024, up from N223.3 billion at the beginning of the year, driven by robust operational performance, while shareholders’ funds increased by 64% to N94.6 billion as of June 30th, 2024, up from N57.8 billion as of 31st December 2023, boosted by retained earnings.
Market Capitalisation rises
Transcorp Power, which was listed on the Nigerian Exchange (NGX) earlier this year, has continued to show impressive growth, attaining a market capitalisation of N2.52 trillion (July 25, 2024) up from its listed market value of N1.8 trillion.
Peter Ikenga, MD/CEO, Transcorp Power commented on the outstanding H1 2024 performance, attributing it to the company’s strategic vision and relentless pursuit of excellence. “This positive performance across key indicators emphasizes our agility and ability to navigate complex market dynamics effectively. We recognize the criticality of power to unlocking the value in our dear country, Nigeria and we remain committed towards our goal of bridging the energy gap in our country. We will continue to execute our maintenance program and make the necessary investments to increase our power generating capabilities,” he said.
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