Transcorp Power Plc, on Monday presented its unaudited financials for the nine months ended September 30, 2024, showing significant leap in revenue and profits, despite the equally quantum leap in operating costs, particularly cost of sales, impairment loss and income tax expense.
In what Peter Ikenga, its Managing Director/Chief Executive Officer, attributed to a strategic vision, hard work, and relentless pursuit of operational excellence, Transcorp Power reported 153% revenue growth, while profit after tax improved by 185.76%, following which Earnings Per Share rose to N7.79, up from N2.58 each in the period under review.
According to the result, the company, the electricity generating subsidiary of Transnational Corporation Plc (Transcorp Group), committed to improving electricity supply, contributing over 20% of the country’s installed power capacity, recorded a revenue of N223.6bn in Q3 2024, a 153% increase from N88.4bn in Q3 2023, a breakdown of which showed that energy delivered contributed the lion’s share of N149.391bn, up from N56.494bn; capacity charge accounted for N74.151bn from N31.93bn in the similar period of 2023; ahead of the ancillary services which remained flat at N13.5m. Furthermore, the result showed that N184.356bn, or 82.47% of the total revenue was generated from local customers, up from N77.193bn or 87.28% in 2023; while the remaining N39.199bn was derived from international customers, compared to N11.245bn in 2023 Q3.
Cost of sales increased by N81.145bn or 176.6% from N45.947bn in the corresponding period of last year to N127.093bn, of which natural gas and fuel costs remained the most significant, rising from N39.04bn in 2023 to N118.423bn; while repairs and maintenance rose to N3.573bn from N2.631bn; and depreciation from N3.126bn to N3.555bn. This left gross profit at N96.463bn, compared to the previous N42.491bn.
Other operating income fell by N471.796m or 1,527.04% from N492.952m to N21.156m; just as impairment loss on financial assets soared to N4.295bn from N264.015m. Administrative expenses also doubled from N5.068bn to N11.605bn, driven mainly by the N6.728bn, which jumped from N2.554bn; following which operating profit increased from N37.651bn to N80.582bn.
Finance income (interest income) stood at N4.88bn, up from N1.909bn, while finance cost (interest expense on loans) rose from N4.933bn to N7.916bn; just as the company reported a foreign exchange gain of N3.574bn, compared to the N7.368bn loss in the prior nine-month.
Profit Before Tax increased by 198% to N81.1bn, from N27.3bn in the previous year; income tax expense jumped to N22.7bn from N6.814bn; following which Profit After Tax achieved a 186% increase, rising to N58.5bn from N20.4bn in Q3 2023.
Ikenga stressed that “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,” he add.
Also commenting on the scorecard, the company’s Chief Financial Officer, Evans Okpogoro, expressed strong confidence in the company’s financial trajectory, which he attributed to the company’s “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.”
