Nigerian conglomerate- Transnational Corporation Plc, with a portfolio that spans power, resources and hospitality, has released its unaudited reported for the half-year ended June 30, 2025, with the directors announcing the decision to join interim dividend paying companies on the bourse, most of which are banks.
According to the result, Transcorp Group’s revenue grew by 59% from N175.426bn in 2024 to N279.656bn, N243.085bn or 87% of which was generated from the group’s power business, a significant growth from N74.721bn; followed by N47.572bn or 17% from hospitality, compared N74.721bn.
A further analysis of the revenue showed that energy sent out amounted to N183.547bn, up from N101.614bn; while capacity charge rose marginally from N44.083bn to N48.548bn; and rooms from N22.254bn to N31.329bn.
Furthermore, revenue from within Nigeria rose to N207.092bn from N162.983bn; while a total of N72.585bn was generated from outside the country, up from just N12.442bn.
Of the total revenue, cost of sales amounted to N148.758bn, 65.6% higher when compared to the previous N89.948bn, boosted by cost of natural gas and fuel increased from N73.52bn to N120.406bn; following which gross profit stood at N130.919bn, as against the N95.478bn reported in the corresponding period of 2024. Gross profit margin, therefore, stood at 47% despite economic headwinds.
Other income for the period soared from N16.445m to N1.877bn, lifted by dividend income on equity securities of N1.448bn, up from N1.11bn; and other income of N392.248m, down from N432.832n; impairment loss on financial assets rose from N3.8bn to N4.861bn; as administrative expenses leaped to N35.956bn from N21.153bn; resulting to an operating profit of N91.978bn, against N76.969bn reported last year.
Finance costs was driven by the N14.264bn interest expense on loans, which was double the N7.533bn; and interest capitalised amounted to N101.148m from N256.856m, resulting in interest expense on loans of N14.162bn up from N7.267bn. Finance Income, being interest on loan stood at N5.113bn, up from N151.472m; just as net finance cost increased from N7.124bn to N9.049bn; foreign exchange gain on financing activities stood at N2.767bn, up from N1.074bn. Profit before tax grew by 21%, closing at N85.7bn, compared to N70.9bn recorded in H1 2024; while taxation increased to N20.565bn from N18.131bn. Profit after tax, therefore amounted to N65.171bn from N52.787bn, representing an increase of 23.46%; translating to Earnings Per Share of N4.08, up from the previous N0.81 each.
Despite the continuing economic headwinds, the bellwether stock made significant investments in Nigerian infrastructure, including the launch of the Transcorp Centre in Abuja, Nigeria’s state of the art convention and events centre, which has already hosted international leaders and major regional events.
The Company declared an interim dividend of ₦4.064bn representing 40 kobo per ordinary share subject to applicable withholding tax.
Commenting on the scorecard, Chairman of the company, Tony Elumelu, noted that “delivering on our impact driven, value creating mission, we continue to advance strategic investments across key sectors in Nigeria.
“In power, Transcorp Power and Transafam Power increasingly innovate to improve lives, transforming Nigeria. In hospitality, we continue to delight our clients and redefine our sector, not least with the opening in Abuja of the Transcorp Centre, Nigeria’s superlative events centre. Our growth demonstrates the resilience and strength of our diversified business model.
“We remain dedicated to achieving our strategic vision, rewarding our valued shareholders, and driving the sustainable transformation of Nigeria’s economy.”
President/Group Chief Executive Officer, Owen Omogiafo, said the result “reflects our firm commitment to operational excellence and the resilience inherent in our corporate strategy, which has further enhanced our capacity to effectively navigate challenges. This adaptability has enabled us to thrive within a dynamic business landscape while consistently delivering value to our stakeholders.
“With our new 5,000-seat capacity event centre, we are positioning Nigeria as the epicentre of high-scale conferences and events, including hosting the recently concluded AFREXIM Annual Meetings 2025. We continuously explore innovative ways to further accelerate our growth trajectory while strengthening our leadership in Nigeria’s power, hospitality, and energy sectors,” she added.
