The first half of 2025 presented significant challenges for Transcorp Power Plc, with escalating cost pressures and economic headwinds testing the company’s resilience. The power sector giant faced a 76.9% year-on-year spike in cost of goods sold (COGS), which compressed the gross margin to 37.7%. Additionally, natural gas and fuel costs rose 64.1% year-on-year, further straining the company’s profitability.
Despite these challenges, Transcorp Power demonstrated its strategic prowess, leveraging operational efficiency and disciplined cost management to navigate the turbulent landscape. The company’s revenue surged by 52% year-on-year to N205.8 billion, driven by strong growth in capacity charge and energy delivered. However, the EBIT margin was impacted by higher impairment loss on financial assets and administrative expenses, underscoring the complexity of the operating environment.
Transcorp Power’s profit after tax (PAT) grew by 19.8% year-on-year to N44.05 billion, with earnings per share (EPS) of N5.87. The company’s interim dividend of N1.50 per share demonstrates its commitment to delivering value to shareholders, with a robust payout ratio of 25.5%.
Looking ahead, Transcorp Power is confident in sustaining its growth momentum into the second half of 2025, driven by continued investment in its plant and infrastructure. The company’s managing director and CEO, Peter Ikenga, highlighted the gains made through strategic investments in plant capacity and infrastructure. With its commitment to operational efficiency, disciplined cost management, and shareholder value creation, Transcorp Power is poised to remain a leader in Nigeria’s power sector.
Overall, Transcorp Power Plc’s H1 2025 performance showcases the company’s resilience and strategic prowess in the face of challenges. Despite the headwinds, the company delivered growth and demonstrated its ability to adapt to a complex operating environment.
