Transcorp Power’s nine-month profit jumps nearly threefold to N58 billion

Electricity provider Transcorp Power reported an almost threefold increase in net profit for the first nine months of the year, boosted by an improvement in its two key income sources.

The Ughelli-based company, which was listed on the Nigerian Exchange in March, recorded a revenue of N223.6 billion, compared to N88.4 billion a year earlier.

The strong performance rested on a 170.5 per cent surge in the income generated from energy delivered and a 132.2 per cent rise in the cash earned from capacity charge, its unaudited financials issued on Monday showed.

Transcorp Power, a member of the West African Power Pool and a supplier of electricity to the ECOWAS Regional Market, ramped up import earnings as a share of revenue to 17.5 per cent within the period from 12.7 per cent.

“Our commitment to disciplined cost management and operational efficiency has not only enabled us to sustain robust margins, but has also positioned us to outperform industry averages in key areas,” Chief Financial Officer Evans Okpogoro said in a separate document.

Net profit margin, an indicator of how much of revenue has been turned into profit, stood at 26.1 per cent, up from 23.1 per cent in the corresponding period of last year.

“I am proud to report that we have sustained our remarkable growth trajectory and maintained our position as a leading contributor to the country’s power sector, accounting for approximately 10% of total power generated on the national grid,” CEO Peter Ikenga said.

“As the market transitions into the bilateral contracts, as contained in the Electricity Act, we are optimistic about sustaining the momentum by capitalizing on more strategic investment opportunities and providing additional value to our shareholders,” he added.

Impairment loss on financial assets for the period rose by 1,527 per cent to N4.3 billion, while administrative expenses more than doubled to N11.6 billion.

Foreign exchange gain stood at N3.6 billion, compared to a loss of N7.4 billion a year ago.

Profit after tax climbed to N58.4 billion from N20.4 billion.

The stock has returned 14.3 per cent since it was admitted to the main board of the NGX seven months ago.