Transcorp Power Plc has announced a N37.5 billion dividend payout to shareholders following an impressive financial performance in 2024.
Strong Financial Growth
At the company’s 12th Annual General Meeting (AGM) in Abuja, Chairman Emmanuel Nnorom shared that shareholders will receive N5 per share. This includes an interim dividend of N1.50, paid in July 2024, and a proposed final dividend of N3.50, pending shareholder approval.
“Despite economic challenges, Transcorp Power remains resilient and focused on delivering value,” Nnorom stated while presenting the company’s 2024 financial report.
Revenue surged by 115%, rising from N142.1 billion in 2023 to N305.9 billion in 2024. Operating profit also increased significantly, jumping from N64.63 billion to N114.03 billion. Profit before tax more than doubled, reaching N113.3 billion from N52.8 billion in the previous year. Meanwhile, profit after tax soared by 165%, climbing from N30.2 billion to N80.01 billion.
“Our financial performance reflects our commitment to sustained growth and value creation,” Nnorom added, emphasizing the company’s strategic direction despite Nigeria’s economic volatility.
Strengthened Financial Stability
One of Transcorp Power’s major achievements in 2024 was fully repaying its $215 million foreign acquisition loan, significantly improving its financial health.
“The company’s gearing ratio improved from 64.48% in 2023 to 29.7% in 2024,” Nnorom said.
Additionally, Transcorp Power’s listing on the Nigerian Exchange (NGX) Main Board on March 4, 2024, marked another milestone. The company’s market capitalization grew from N1.8 trillion at listing to N2.7 trillion by year-end.
Expanding Power Generation Capacity
In 2024, Transcorp Power recovered an additional 125MW of generating capacity, reinforcing its role in Nigeria’s power sector.
“This expansion highlights our dedication to solving Nigeria’s electricity challenges while creating long-term value,” Nnorom noted.
The company is preparing for the evolving Nigerian Electricity Supply Industry (NESI), which is shifting towards direct agreements between generation and distribution companies. It has already signed a Power Purchase Agreement (PPA) with Abuja Electricity Distribution Company and is in advanced talks with other DisCos.
Addressing Sector Challenges
To tackle industry hurdles like gas supply constraints and grid instability, Transcorp Power invested in alternative fuel sources and improved grid infrastructure. These efforts ensure consistent power generation and reliability.
The company also prioritizes employee welfare, offering competitive salaries, continuous training, and a safe work environment. It maintains strong relationships with host communities through social initiatives.
Future Growth Plans
With solid financials, increased generating capacity, and a clear strategic vision, Transcorp Power remains optimistic about sustained growth in 2025.
“We are confident in navigating market challenges while delivering strong returns to shareholders,” Nnorom stated.
Managing Director Peter Ikenga emphasized the company’s consistent financial growth and strategic plans to maintain momentum.
“Over the past five to six years, our revenue has grown at an annual rate of over 40%. In just one year, we recorded a 115% revenue increase and a 165% profit growth. Shareholders can expect this trend to continue,” Ikenga said.
Transcorp Power ended 2024 with a capacity of 625MW, up from 500MW at the start of the year. By the end of 2025, the company aims to add another 150MW, bringing its total capacity to 775MW.
“This expansion will drive higher revenue, profitability, and returns for our investors,” Ikenga added.
Focus on Efficiency and Community Development
Ikenga underscored the company’s commitment to operational excellence.
“We’re not only increasing capacity; we’re also improving efficiency and cost management. This ensures revenue growth translates into higher profitability,” he explained.
He reassured shareholders of continued reinvestment to strengthen the company’s market position.
“With board support and shareholder trust, we’re entering an exciting phase. By year-end, shareholders can expect strong returns and sustained growth,” he said.
Ikenga praised the company’s relationship with host communities, calling them “peaceful, cooperative, and supportive.” He highlighted initiatives like the Transcorp Power School, which provides quality education, and vocational training programs that equip youths with skills and seed funding for entrepreneurship.
“As we expand, so will our community development programs. Our growth must benefit those around us,” Ikenga emphasized.
With a strong foundation, ambitious expansion plans, and a focus on efficiency, Transcorp Power is set for another year of significant growth. Shareholders and communities stand to gain as the company continues its mission to power Nigeria’s future.
“Our promise is simple—sustained growth, stronger returns, and shared prosperity,” Ikenga concluded.
