Transcorp Power Vows to Generate 25% of Nigeria’s Electricity
…Reports Stellar Financial Growth
By Patience Ikpeme
Transcorp Power Plc has declared its ambitious goal to generate 25% of Nigeria’s total electricity consumption in the near future, marking a significant step towards bolstering the nation’s power sector.
This announcement was made by the Chairman of the Board of Directors, Mr. Emmanuel Nnorom, during the company’s Annual General Meeting (AGM) held in Abuja on Tuesday.
“The power we’re generating today, our target is 25% of the power consumed in Nigeria. We are presently at about 12% of power consumed in Nigeria. And the plan this year is to be at 15%. Our target is to be at 25%,” Nnorom stated, outlining the company’s aggressive growth strategy.
He further emphasized the importance of improving gas supply and infrastructure to support industrial growth, stating, “efforts to improve gas supply and infrastructure will be prioritized to support industrial growth.”
The AGM also highlighted Transcorp Power’s remarkable financial achievements. Notably, the company successfully repaid its $215 million FX acquisition loan from 2014, significantly reducing its gearing ratio from 64.48% in FY 2023 to 29.70% in FY 2024, signaling improved financial stability.
“In the year 2024, Transcorp Power fully paid down its FX acquisition loan from $215 million in 2014. Following the complete repayment of its USD loan, the Company’s gearing ratio reduced significantly from 64.48% in FY 2023 to 29.70% in FY 2024, indicating improved financial stability,” Nnorom explained.
The company’s listing on the Main Board of the Nigerian Exchange (NGX) on March 4, 2024, at a market capitalization of N1.80 trillion, which has since grown by N2.70 trillion as of December 31, 2024, was another highlight of the year.
Transcorp Power reported an impressive 115% growth in revenue, rising from N142.1 billion in 2023 to N305.9 billion in 2024. Operating profit surged to N114.03 billion, compared to N64.63 billion in 2023, while profit before tax increased from N52.8 billion to N113.3 billion. Profit after tax saw a 165% increase, from N30.2 billion in FY 2023 to N80.01 billion in FY 2024.
“This financial performance reflects our unwavering commitment to our shareholders and stakeholders. We remain steadfast in our pursuit of value creation and assure our investors of continued robust returns. I am proud of how our organisation faced and responded to a particularly challenging market and macroeconomic environment and our future remains very bright,” Nnorom said.
Shareholders were rewarded with a total dividend of N5 per share, comprising an interim dividend of N1.50k and a final dividend of N3.50k per share, totaling N37.5 billion.
The company also reported a successful recovery of 125MW capacity, bringing its current generating capacity to 625MW. “We started the year with an available capacity of 500 mega-VWatts (MW) and delighted that at the end of the year, we closed the year stronger with an available capacity of 625MW, positioning us for higher level of operational performance and financial outcome,” Nnorom confirmed.
Managing Director/CEO, Peter Ikenga, reassured shareholders, stating, “we’re on the right trajectory. If you look at our records over the last six years, we’ve been on the upward trajectory. And I can assure you that we have better things to come in 2025, at the end of the year.”
Ikenga outlined the company’s strategic priorities, including continued recovery of plant available capacity, operational excellence, rigorous plant maintenance, human capital development, cost optimization, and strong focus on ESG practices.
He also highlighted the company’s proactive approach to addressing challenges in the Nigeria Electricity Supply Industry (NESI), including gas supply constraints and grid stability issues. Transcorp Power is well-positioned to leverage the transition to a bilateral contract model between generation and distribution companies, having already executed a Power Purchase Agreement (PPA) with Abuja Electricity Distribution Company.
Furthermore, Transcorp Power is strengthening its position in the regional electricity market, expanding its partnership with Société Béninoise de Production d’Électricité (SBPE) in the Republic of Benin, increasing contracted capacity from 130MW to 200MW.
“You will smile by his grace. I just want to assure you that your company is in the right hands. We’re moving things in the right direction. with time, shareholders will continue to smile to the bank” Ikenga concluded.
