In a year marked by widespread economic uncertainty in Nigeria, Transcorp Power Plc has become a model of resilience and growth. The company, a subsidiary of Transnational Corporation Plc, demonstrated remarkable financial performance in its 2024 financial year, defying the economic slowdown that has hit many sectors of the Nigerian economy.
Transcorp Power recorded an impressive 115.27% increase in its revenue year-on-year (y-o-y), which soared to N305.9 billion. Profit before tax also saw significant growth, increasing by 114.71% year-on-year to N113.287 billion.
This performance is seen as an indication of Transcorp Power’s role as one of Nigeria’s most formidable power operators. It contributes more than 20% of the country’s installed electricity capacity through its Ughelli and Afam gas-fired power plants, with a combined capacity close to 2,000 megawatts.
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Demonstrating its commitment to rewarding shareholders, the board proposed a final dividend of N3.50 per share. When added to the interim dividend of N1.50 per share declared mid-year, this brings the total dividend for the financial year 2024 to N5.00 per share.
The company’s growth story is even more significant when viewed in light of Nigeria’s current economic realities, where businesses are grappling with rising costs, inflation and currency volatility.
Growth drivers
Transcorp Power’s revenue growth was driven by increased energy deliveries, which accounted for more than 67% of total revenue. This increase in energy sales, coupled with operational efficiencies, has enabled the company to maintain strong profitability despite a 145.48% year-over-year increase in cost of sales, primarily due to increased spending on natural gas and fuel.
The company also reported a significant improvement in its financial stability. Following the full repayment of its USD loan, its debt ratio fell from 64.48% in 2023 to 29.70% in 2024. This substantial reduction in debt not only strengthens the company’s balance sheet, but also positions it for future growth and investment opportunities.
Return on assets increased from 13.53% in FY2023 to 20.17% in FY2024, while return on equity increased from 52.25% to 63.19% . These measures highlight Transcorp Power’s efficiency in using its resources to generate revenue, reinforcing its reputation as a well-managed entity in a turbulent economy.
President Emmanuel N. Nnorom praised the company’s resilience and its role in responding to Nigeria’s energy challenges. He said: “Transcorp Power has emerged as one of Nigeria’s most formidable power operators, committed to bridging the country’s energy deficit and contributing to the country’s economic growth. This financial performance reflects our unwavering commitment to our shareholders and stakeholders. We remain committed in our quest to create value and guarantee our investors robust and continued returns.
CEO Peter Ikenga attributed the company’s success to its strategic investments and disciplined approach to operations.
“Transcorp Power is dedicated to financial discipline and delivering unparalleled value to our stakeholders. Since our public listing, we have maintained consistent growth across all financial metrics, in line with our mission to create value. We are confident in our ability to maintain this trajectory of success,” he said.
Defying economic headwinds
Transcorp Power’s achievements stand out in a year when many Nigerian businesses are struggling under the weight of economic pressures. The company has not only weathered the storms but also expanded its footprint and strengthened its financial position.
The company has been remarkably focused on improving electricity supply, driving economic growth and creating value for Nigeria. This reflects a growth strategy that matches the country’s urgent need for reliable energy infrastructure.
Some analysts note that Transcorp Power Plc’s success in FY2024 is not only a financial milestone but also a symbol of hope in a challenging economic landscape, demonstrating that with the right strategies, businesses can thrive even in the most difficult times.
