Transcorp Power Plc Grows 2024Q1 Net Profit By 665% On Impressive Revenue

Transcorp Power Plc, the electricity generating subsidiary of Nigeria’s leading, listed conglomerate, Transnational Corporation Plc, recently presented its unaudited result for the first quarter ended March 31, 2024, with gross earnings soaring by 223%, which was outpaced by the 775% jump in profit before tax for the period.

Revenue for the period stood at N67.86bn, compared to N21.04bn in the corresponding period of last year, in what the company said in a statement is a further demonstration of the Transcorp Power’s strategic focus and effective execution, as part of the group’s implementation of its integrated power strategy. The bulk of the revenue, according to the result filed at the Nigerian Exchange Limited, was the N45.231bn earned from energy delivered, which rose from N13.97bn; followed by capacity charge of N22.624bn from N7.066bn.

Cost of sales, however, recorded an equally significant 147.99% growth from N13.342bn to N33.083bn, driven significantly by natural gas and fuel costs at N30.096bn, compared to the previous N11.55bn. This resulted in gross profit of N34.778bn, up from N7.697bn, which represented an increase of 351.8%.

Other operating income was nil, compared to the previous N12.115m; impairment loss on financial assets jumped from N77.622m to N1.088bn; while administrating expenses soared to N4.279bn from N887.875m. This translated to an operating profit of N29.41bn from N6.744bn.

Finance income rose to N1.298bn from N512.126m; and finance cost from N1.545bn to N2.176bn, which was mainly the interest expense on loans of N2.176bn from N1.545bn; foreign exchange gain stood at N239.501m, compared to the previous N2.422bn loss.

Caption: Peter Ikenga, MD/CEO

Profit before Tax for the period, therefore, rose to N28.77bn, compared to N3.29bn in the same period last year, while the N8.631bn income tax expense, up from N657.761m, left profit after Tax at N20.1bn in Q1 2024,  up by 665% year-on-year, compared to N2.6bn in the same period last year. The net profit translated to Earnings Per Share of 2.69, up from N32.80 each.

On the balance sheet, Total Assets grew to N276.2bn in Q1 2024, up from N223.3bn in Q4 2023, in what Evans Okpogoro, the Chief Financial Officer said translated into “a gross margin of 51%, a cost to income ratio of 70% and net profit margin of 30% compared to Q1 2023 gross margin of 37%, cost to income ratio of 87% and net profit margin of 13%.”

This, he continued, highlights the remarkable operational efficiency gains of the company which he said “has continued to grow its revenue aggressively and consistently over the last five years.  We expect that by year end 2024, we will see a similar growth trajectory recorded between FY 2022 and FY 2023.”

Also, Transcorp Power’s Managing Director/Chief Executive Officer, Peter Ikenga, said the result was a “further robust financial performance, despite sectoral challenges such as gas supply issues and macroeconomic challenges.  Our ability to sustain growth amidst this environment shows the resilience of our business model and the efficient execution of our strategic initiatives.

“We remain committed to leveraging our strengths to capitalise on emerging opportunities, drive sustainable growth and provide superior value to all our stakeholders.  We will continue to prioritise ingenuity, operational excellence, corporate governance, and stakeholder engagement, to deliver superior value for our long-term growth,” he added.