Transcorp Power, in the first six months of 2026, has disclosed that shareholders of the power-generating company will receive N11.2 billion as dividends, despite reporting a 12 percent decline in profit.
The company, in a corporate action announcement dated July 17, said an Interim dividend of One Naira and Fifty Kobo (N1.50) per ordinary share, subject to appropriate withholding tax deduction and approval, will be paid to shareholders whose names appear in the Register of Members as at the close of business on Monday, July 20, 2026.
The dividend declaration came as Transcorp Power reported revenue of N181.97 billion for the first half of 2026, down from N205.81 billion in the corresponding period of 2025, while profit before tax fell to N54.99 billion from N58.73 billion.
Net profit fell nearly twice as fast, down 12.6 percent to N38.50 billion, as finance costs more than tripled to N1.36 billion, and other gains turned negative to N633 million from a positive N2.16 billion reported in the same period of last year.
Peter Ikenga, the company’s CEO, stated that “Our H1 2026 performance is a reflection of the resilience of our business operations despite significant sector-wide existential challenges. Regrettably, recurring transmission line vandalisation materially constrained our ability to evacuate available generation capacity.
“Nonetheless, we continued to deliver strong profitability, maintain operational efficiency, and strengthen our balance sheet. We remain committed to working with relevant stakeholders to put an end to transmission line vandalisation and to further improving operational performance, power generation supply reliability, and creating sustainable value for our shareholders. We remain highly confident that we will recover lost ground in H1 2026 and finish FY 2026 stronger than FY 2025,” he said.
During the period, gross margin expanded to 38.4 percent from 34.7 percent in H1 2025, and operating margin increased to 30.6 percent from 28.5 percent in 2025.
Net cash from operating activities flipped from a positive N49.38 billion in H1 2025 to negative N4.22 billion this half, even though pre-tax profit barely moved. Trade and other receivables grew N61.03 billion during the period, largely due to unpaid billings to NBET, the government’s bulk electricity trader. A year earlier, a similarly large receivables build-up was offset by delaying payments to the company’s own suppliers; that cushion mostly disappeared this half, so the shortfall hit the cash balance.
On the financing side, the company drew N63.63 billion in new borrowings during the half, more than double the N23.53 billion raised in H1 2025, taking total debt from N30.69 billion at the start of the year to N63.63 billion by June. Alongside that, it repaid N24.17 billion in loan principal and N4.91 billion in loan interest, and paid out a N30 billion dividend, up from N26.25 billion a year earlier.
Net cash from financing activities came in at a positive N4.54 billion, but that positive figure is only there because new borrowing outpaced everything going out the door; strip out the N63.63 billion drawdown and financing activities would have been sharply negative. In effect, the company borrowed more than it needed to cover its normal debt repayments and dividend combined, with the surplus likely covering the operating cash shortfall discussed earlier.
Investing activity moved in the opposite direction as net cash used in investing activities was just N525.15 million in H1 2026, against N2.77 billion generated in H1 2025. The company spent N525.15 million on property, plant and equipment, similar to the N515.11 million spent a year earlier, but it earned no interest income this half, versus N3.45 billion in H1 2025, and made no new investment in shares, versus a small N163.18 million placed last year.
Cash on hand closed the period at N667.9 million against N367.2 billion in current liabilities. In effect, both the dividend and the company’s near-term cash needs this half were funded by new debt rather than by cash the business generated on its own. All of these brought around a negative cash flow balance for H1 2026
Transcorp Power lost over 20 percent year-to-date of its share price, dropping from N307 to N245.5 with a market capitalisation of N1.84 trillion.
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