Transcorp Power reports 115% surge in revenue, declares N37.5bn dividend

Transcorp Power Plc has announced a total dividend payout of N37.5 billion to shareholders following a remarkable financial performance in 2024.

At its 12th Annual General Meeting (AGM) held on Tuesday in Abuja, the company’s Chairman, Emmanuel Nnorom, revealed that shareholders will receive a total dividend of N5 per share—comprising an interim dividend of N1.50 paid in July 2024 and a proposed final dividend of N3.50 for shareholder approval.

“Despite a challenging macroeconomic environment, Transcorp Power has remained resilient and committed to delivering value to our shareholders,” Nnorom stated during the presentation of the company’s 2024 Annual Financial Statements.

He noted that the Transcorp Power posted a 115% surge in revenue, rising from N142.1 billion in 2023 to N305.9 billion in 2024.

Operating profit jumped to N114.03 billion from N64.63 billion the previous year, while profit before tax more than doubled from N52.8 billion in 2023 to N113.3 billion in 2024.

Profit after tax recorded a staggering 165% increase, soaring from N30.2 billion to N80.01 billion.

“This outstanding financial performance reflects our unwavering commitment to value creation for our shareholders,” Nnorom said, highlighting the company’s strategic focus amid Nigeria’s volatile economic conditions.

Nnorom noted that one of Transcorp Power’s key achievements in 2024 was the full repayment of its $215 million foreign acquisition loan, significantly improving its financial stability.

“The company’s gearing ratio dropped from 64.48% in 2023 to 29.7% in 2024”, he added.

Additionally, Transcorp Power was listed on the Main Board of the Nigerian Exchange (NGX) on March 4, 2024, with an initial market capitalization of N1.8 trillion. By year-end, its market cap had soared to N2.7 trillion.

“In its core operations, the company recovered an additional 125MW of generating capacity, further strengthening its position in Nigeria’s critical power sector.

“This expansion underscores our strategic commitment to addressing Nigeria’s power challenges and creating long-term value for our stakeholders,” Nnorom said.

Read also: Transcorp Power profit rises by 165%

Transcorp Power is strategically positioning itself for the evolving Nigerian Electricity Supply Industry (NESI), which is transitioning to a bilateral contract model between generation and distribution companies.

Nnorom revealed that the company has already signed a Power Purchase Agreement (PPA) with Abuja Electricity Distribution Company and is in advanced discussions with other DisCos.

To address persistent sectoral challenges such as gas supply constraints and grid instability, Transcorp Power invested in alternative fuel sources and grid infrastructure, ensuring consistent power generation.

The company also continued to prioritize employee welfare, maintaining competitive remuneration, robust training programs, and a safe work environment, while preserving strong ties with host communities.

With strengthened financials, enhanced generating capacity, and a strategic focus on market opportunities, Transcorp Power remains optimistic about sustained growth in 2025. “We are confident in our ability to navigate market challenges and continue delivering strong returns to our shareholders,” Nnorom concluded.

On his part, Peter Ikenga, Managing Director of Transcorp Power Plc, highlighted the company’s impressive financial performance over the past years and outlined strategic plans to maintain its upward trajectory.

“We’ve experienced consistent growth over the last five to six years, with our revenue compounding annually at over 40%.

“Between 2023 and 2024 alone, we grew our revenue by 115% and saw a 165% increase in profit. Shareholders can expect this growth trend to continue”, Ikenga stated.

Transcorp Power ended 2024 with an available capacity of 625MW, up from 500MW at the start of the year.

Ikenga revealed that the company plans to add another 150MW to its generating capacity by the end of 2025, bringing the total to 775MW.

“This expansion directly translates to increased revenue, higher profitability, and stronger returns for our shareholders,” he added.

Ikenga emphasized the company’s focus on operational excellence and efficiency as key drivers of its success.

“We are not just focused on growing capacity; we are also enhancing operational efficiency and managing costs effectively. This strategy ensures that our revenue growth is matched by improved profitability,” he explained.

The CEO reassured shareholders that the company remains committed to continuous reinvestment aimed at strengthening its market position.

“With the support of our board and the trust of our shareholders, we are entering an exciting phase. By year-end, shareholders can expect a bumper period of returns and sustained company growth,” Ikenga noted.

Ikenga praised the strong relationship the company enjoys with local communities, calling them “the most peaceful, cooperative, and supportive.”

He also noted the company’s several impactful programs that directly benefit its host communities.

“Our Transcorp Power School continues to transform lives by providing quality education, while our vocational skills program equips young people with practical skills and seed funding to start their own businesses, empowering them to become employers themselves”, he said.

Ikenga stressed that as Transcorp Power grows, so will its community development initiatives.

“We are deeply invested in the prosperity of our host communities. As we expand our capacity and improve our financial performance, we will continue to scale up our community programs, ensuring that the benefits of our growth are shared widely”, he stressed.

With an ambitious plan to boost generating capacity and a clear focus on operational efficiency, Transcorp Power is poised for another year of significant growth.

Shareholders and host communities alike stand to benefit as the company builds on its strong foundation and continues its mission to power Nigeria’s future.

“As we move forward, our promise is simple – sustained growth, stronger returns, and shared prosperity”, Ikenga noted.