Transcorp Power Plc has announced its unaudited financial results for the first half of 2026, revealing a 6.37% decline in profit before tax to N54.99 billion, compared to N58.73 billion recorded in the same period of 2025. Despite the dip in profitability, the company's revenue surged by 167% to N299.47 billion, up from N112.29 billion in H1 2025.
Revenue Growth Driven by Increased Electricity Sales
The significant revenue increase was primarily driven by a 185% rise in electricity sales to N297.2 billion, compared to N104.2 billion in the prior year. Other income also grew by 13% to N2.27 billion. However, the cost of sales rose sharply by 213% to N218.5 billion, outpacing revenue growth and compressing margins.
Gross profit stood at N80.97 billion, up 78% from N45.5 billion in H1 2025. Operating profit declined by 17% to N61.19 billion, as operating expenses increased by 184% to N19.78 billion. Finance costs surged by 327% to N6.2 billion, further impacting the bottom line.
Dividend Declaration and Earnings Per Share
Despite the profit decline, the board of directors proposed an interim dividend of N1.50 per share, unchanged from the previous year. This translates to a total dividend payout of approximately N23.4 billion, based on the company's issued share capital of 15.6 billion shares.
Earnings per share (EPS) dropped to N3.28 from N3.50 in H1 2025, reflecting the lower net profit. Net profit attributable to equity holders fell by 6.37% to N51.2 billion.
Balance Sheet Highlights
Total assets increased to N600.2 billion as of June 30, 2026, up from N550.1 billion at the end of 2025. Total liabilities rose to N420.5 billion from N380.3 billion, while equity grew to N179.7 billion from N169.8 billion. The company's net debt position widened due to increased borrowings for capital expenditure.
Transcorp Power's CEO, Mr. Peter Ikenga, commented: "Our revenue growth demonstrates strong demand for electricity, but rising input costs and finance charges have pressured margins. We remain focused on operational efficiency and cost optimization to improve profitability in the second half of the year."
Market Reaction and Outlook
Transcorp Power shares traded at N42.50 on the Nigerian Exchange (NGX) as of the announcement, giving the company a market capitalization of approximately N663 billion. Analysts note that the dividend yield of 3.5% may attract income-focused investors, but concerns over rising costs and profit decline could weigh on short-term sentiment.
The company plans to invest in grid infrastructure and renewable energy projects to boost capacity and reduce operational costs. Management expects improved performance in H2 2026, driven by higher tariff adjustments and efficiency gains.
