How Elumelu’s Transcorp Power Nearly Tripled Profits in One Year
- One of Nigeria's top power generation companies, Transcorp Power has reported massive growth in profits for 2024
- Transcorp Power is majorly owned by Nigerian billionaire, Tony Elumelu, through his investment vehicle
- The company unveiled plans to achieve 25% of Nigeria's total power generation in the coming years
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
Tony Elumelu's Transcorp Power Plc has reported a massive growth in profit after tax, from N30.2 billion in the 2023 financial year to N80 billion in the 2024 financial year.
This marks a 165% growth year on year and means that the company nearly tripled profits in one year.
This was part of the highlights of the 2024 financial report announced by the Managing Director and Chief Executive Officer of Transcorp Power, Peter Ikenga, at the Annual General Meeting held in Abuja yesterday.
Source: Twitter
Speaking at the meeting, Ikenga disclosed that total revenues also doubled, growing by 115% from N143.1 billion in 2023 to N305.9 billion in the 2024 fiscal year.
How Transcorp Power tripled profits
The Managing Director, Mr. Peter Ikenga attributed the increased profits to several reasons including cost optimization and improving operational efficiencies, the GUARDIAN reports.
The company recorded a massive increase in gross profits as well, hitting N142.2 billion in the 2024 fiscal year, compared to N75.4 billion in 2023.
Ikenga observed that the increase in electricity tariffs also played a role in increased profits.
Recall that electricity tariffs increased by nearly 250% in 2024, with the removal of tariffs for band A customers, and there are discussions towards further increases.
Source: Twitter
Transcorp Power also completed the payments of its dollar-denominated loans, thus reducing exposure to naira devaluation and FX volatilities, and improving financial stability.
Transcorp Power has also entered cross-border electricity sales, and sales to its partners in the Republic of Benin accounted for 18% of total revenue in 2024. This foreign exchange revenue also helped cushion the effects of the naira devaluation.
Speaking about this achievement, Board Chairman Emmanuel Nnorom expressed how proud he was that the company has fully paid off its foreign exchange acquisition loan of $215 million obtained in 2014, adding that the company is now properly primed for massive growth.
Transcorp increases power generation, targets 25%
According to the report, Transcorp Power started 2024 with 500MW and improved this to 625MW after securing gas supply from multiple sources before the end of the year.
Recall that Tony Elumelu recently announced plans to get the power company to achieve full capacity of 2000MW.
The Transcorp Power MD also disclosed that it is engaging with stakeholders and plans to install a second interbus transformer of 150MVA capacity at the TCN switchyard to improve reliability and flexibility in power generation and evacuation.
Transcorp stock among top performers in 2024
In related news, Transnational Corporation of Nigeria (Transcorp) shares were among the top 10 highest performers on the NGX in 2024.
The group's stocks started the year at N8.66k per unit and grew about 402% to close the year at N43.5%.
At some time in the year, the stock price went as high as N53.45k before later retracing when investors started taking profits.
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Source: Legit.ng
