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Transcorp Power Plc has announced plans to generate 25 per cent of the electricity consumed in Nigeria in the near future, up from its current share of 12 per cent....READ THE FULL CONTENT FROM THE SOURCE | READ THE FULL CONTENT FROM THE SOURCE
Chairman of the Board of Directors, Mr. Emmanuel Nnorom, made this disclosure in Abuja on Tuesday during the company’s Annual General Meeting (AGM).
“The power we’re generating today, our target is 25 percent of the power consumed in Nigeria. We are presently at about 12 percent of power consumed in Nigeria. And the plan this year is to be at 15 per cent. Our target is to be at 25 per cent,” Nnorom said.
He also noted the company’s focus on improving gas supply and infrastructure to support industrial growth.
Speaking to the company’s performance, Nnorom revealed that “In the midst of macroeconomic challenges, in 2024, we achieved an impressive growth in revenue of 115per cent, rising from N142.1 billion in 2023 to N305.9 billion in 2024. Operating profit for the year under review is N114.03 billion compared to N64.63 billion in 2023. Profit before tax increased from N52.8 billion in 2023 to N113.3 billion in 2024. Profit after tax increased by 165per cent from N30.2 billion in FY 2023 to N80.01 billion in FY 2024.”
Nnorom highlighted the company’s improved financial stability, noting that in 2024, Transcorp Power fully repaid its foreign currency acquisition loan of $215 million taken in 2014. With the complete repayment of the loan, the company’s gearing ratio dropped from 64.48 percent in 2023 to 29.70 percent in 2024.
“The repayment of our USD loan has significantly strengthened our financial position, enabling us to pursue more growth opportunities,” he stated.
The company was listed on the Main Board of the Nigerian Exchange (NGX) on March 4, 2024, with an initial market capitalization of N1.80 trillion, which increased to N2.70 trillion by December 31, 2024.
In terms of dividends, Nnorom said: “In line with our corporate commitment to provide enduring value to our esteemed shareholders, the Board of Directors recommended and paid an interim dividend of N1.50k per ordinary share in July 2024. The Board has now recommended a full dividend of N5 per share, comprising the interim dividend of N1.50k and a final dividend of N3.50k per share, for approval at the 12th AGM. This brings the total dividend payout to N37.5 billion.”
During the year, Transcorp Power recovered an additional 125Mwof capacity, increasing its available capacity from 500Mw at the start of the year to 625Mw by the end of 2024. This improvement is expected to enhance the company’s power generation capacity in 2025.
“The power sector remains critical to Nigeria’s economic growth. While gas supply constraints and grid stability issues posed challenges, we proactively secured alternative fuel sources and invested in grid infrastructure to mitigate risks,” Nnorom explained.
He also noted that the Nigerian Electricity Supply Industry (NESI) is transitioning to a bilateral contract model between generation and distribution companies, replacing the current system where the Nigerian Bulk Electricity Trading Plc (NBET) acts as an intermediary.
“Transcorp Power is well-positioned to leverage this transition, having executed a Power Purchase Agreement (PPA) with Abuja Electricity Distribution Company and engaging in advanced discussions with other DisCos,” he said.
The company also strengthened its position in the regional electricity market through its role as an Executive Board member of the West Africa Power Pool (WAPP). A key milestone in 2024 was expanding its partnership with Société Béninoise de Production d’Électricité (SBPE) in the Republic of Benin, increasing its contracted capacity from 130Mw to 200Mw. This expansion allows for higher electricity exports and reduces stranded capacity at its plants.
Looking ahead, the energy sector is expected to play a crucial role in Nigeria’s economic development, with increased investments in renewable energy projects such as solar and wind.
In his address, the Managing Director and Chief Executive Officer of Transcorp Power, Mr. Peter Ikenga, assured shareholders of the company’s positive outlook for 2025.
“We’re on the right trajectory. If you look at our records over the last six years, we’ve been on an upward trajectory. And I can assure you that we have better things to come in 2025, at the end of the year,” Ikenga stated.
He added that the company’s strategic priorities for the year included recovering plant capacity, improving operational excellence, and implementing rigorous maintenance plans. Other priorities included investing in human capital, optimizing costs, and enhancing environmental, social, and governance (ESG) practices.
Ikenga reassured shareholders of the company’s long-term prospects. “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,” he said...CONTINUE THE FULL READING HERE:
