Transcorp Power Plc has announced a profit before tax of N54.99 billion for the first half of 2025, representing a 77% increase compared to N31.08 billion recorded in the same period last year. The company also declared an interim dividend of N1.50 per share, reflecting its strong financial performance and commitment to shareholder returns.
Revenue and Earnings Growth
The power generation company reported a revenue of N119.46 billion for the six-month period, a 56% rise from N76.58 billion in H1 2024. This growth was driven by increased energy sales and improved operational efficiency. Profit after tax rose by 76% to N37.22 billion, up from N21.14 billion in the prior year.
Earnings per share (EPS) increased to N2.33 from N1.32 in H1 2024, indicating enhanced profitability for shareholders. The interim dividend of N1.50 per share is payable to shareholders on the register as of August 15, 2025, with payment scheduled for September 5, 2025.
Operational Highlights
Transcorp Power's total assets grew to N624.9 billion as of June 30, 2025, compared to N564.2 billion at the end of 2024. The company's gross profit margin improved to 54% from 48% in the prior year, reflecting better cost management and higher tariffs. EBITDA (earnings before interest, taxes, depreciation, and amortization) rose to N74.1 billion, up 63% year-on-year.
According to the company's CEO, Peter Ikenga, "Our strong H1 performance is a testament to our strategic focus on operational excellence and capacity optimization. We remain committed to delivering reliable power to the national grid while maximizing value for our shareholders."
Market Context and Outlook
The positive results come amid challenges in Nigeria's power sector, including gas supply constraints and grid instability. Transcorp Power, a subsidiary of Transnational Corporation Plc, operates the 972 MW Ughelli power plant in Delta State. The company has invested in plant upgrades and maintenance to improve efficiency and output.
Looking ahead, Transcorp Power plans to expand its generation capacity through new projects and partnerships. The company's management expects continued revenue growth driven by increased demand for electricity and favorable tariff adjustments. However, risks remain, including inflationary pressures and regulatory changes.
Shareholder Reaction
Investors reacted positively to the results, with the stock rising by 5% on the Nigerian Exchange (NGX) following the announcement. The dividend yield based on the current share price is approximately 6.5%, making it an attractive option for income-focused investors. Analysts at Cordros Capital noted that the performance aligns with expectations and reaffirmed their buy rating on the stock.
