Transcorp Power revenue up 115% y/y to ₦305.9bn in FY’24

Transcorp Power, a leading player in the Nigerian energy sector, has reported a remarkable 115 per cent year-on-year increase in revenue, reaching 305.9 billion naira in the fiscal year 2024. The company also saw its Profit After Tax surge by 165 per cent, hitting 80 billion naira. Peter Ikenga, the CEO of Transcorp Power, attributes these impressive results to strategic investments and a deliberate focus on enhancing operational efficiencies. Ikenga highlighted that the success in revenue and profit growth is part of a consistent upward trajectory the company has maintained over the past five years. He emphasized that Transcorp Power has been growing its Profit After Tax at a compound rate of approximately 47 per cent annually, demonstrating a commitment to delivering improved and sustained performance for shareholders and investors. The CEO pointed out that the company's achievements in 2024 were driven by a combination of factors. Transcorp Power successfully added additional generating capacity, focused on enhancing operational efficiency, invested in its people, processes, and systems, and maintained a disciplined approach to cost management. These efforts resulted in a significant reduction in operating costs, ultimately boosting profitability. One of the key strategies that Ikenga highlighted was the intentional repayment of USD denominated loans. By settling these obligations, Transcorp Power was able to free up FX obligations, shield itself from exchange rate volatility, and secure additional working capital for future investments in expanding generating capacity. Looking ahead, Transcorp Power is dedicated to bridging the energy gap in Nigeria and plans to increase its contribution to the nation's grid capacity to 25%, up from the current 20%. The company aims to add 150 megawatts of additional generating capacity by the end of 2025, thereby bolstering the availability of power for homes and businesses, aligning with its mission of improving lives and transforming Africa. In terms of shareholder value, Transcorp Power announced a final dividend of five Naira per share for investors in 2024. This dividend payout signifies the company's commitment to rewarding shareholders and delivering a growth trajectory in dividends. Ikenga revealed that the company's Annual General Meeting, scheduled for February 25th, will approve the dividend, setting the stage for continued shareholder value enhancement. Addressing the broader outlook for the power sector in Nigeria, Ikenga expressed optimism about ongoing improvements. He acknowledged that while the sector has made progress in capacity enhancement and financial liquidity through improved collections and remittances, there is still a need for a holistic approach involving cooperation between the government and private sector players to drive further advancements. In conclusion, Transcorp Power's stellar financial performance in 2024 reflects the company's strategic vision, operational excellence, and commitment to sustainable growth. With a focus on enhancing generating capacity, driving operational efficiency, and delivering value to shareholders, Transcorp Power is poised to play a pivotal role in shaping the energy landscape of Nigeria and contributing to the country's economic development.