Transcorp Power Plc has declared a total dividend distribution of N37.5 billion to its shareholders, following an impressive financial performance in 2024.
During the 12th Annual General Meeting (AGM) held on Tuesday in Abuja, Chairman Emmanuel Nnorom announced that shareholders will receive a dividend of N5 per share, which includes an interim dividend of N1.50 disbursed in July 2024 and a proposed final dividend of N3.50 pending shareholder approval.
“Despite a challenging macroeconomic environment, Transcorp Power has remained resilient and committed to delivering value to our shareholders,” Nnorom remarked while presenting the company’s 2024 Annual Financial Statements.
He highlighted that Transcorp Power experienced a remarkable 115% increase in revenue, rising from N142.1 billion in 2023 to N305.9 billion in 2024.
Operating profit surged to N114.03 billion, up from N64.63 billion the previous year, while profit before tax more than doubled, increasing from N52.8 billion in 2023 to N113.3 billion in 2024.
Profit after tax saw an extraordinary 165% rise, climbing from N30.2 billion to N80.01 billion.
“Despite a challenging macroeconomic environment, Transcorp Power has remained resilient and committed to delivering value to our shareholders,” Nnorom emphasized, pointing out the company’s strategic focus amidst Nigeria’s fluctuating economic conditions.
Nnorom highlighted Transcorp Power's successful repayment of its $215 million foreign acquisition loan in 2024, a key accomplishment that substantially enhanced the company's financial stability. He further noted a decrease in the company's gearing ratio from 64.48% in 2023 to 29.7% in 2024
Furthermore, Transcorp Power was officially listed on the Main Board of the Nigerian Exchange (NGX) on March 4, 2024, with an initial market capitalization of N1.8 trillion, which increased to N2.7 trillion by the end of the year.
“In its core operations, the company recovered an additional 125MW of generating capacity, further strengthening its position in Nigeria’s critical power sector.
“This expansion underscores our strategic commitment to addressing Nigeria’s power challenges and creating long-term value for our stakeholders,” Nnorom said.
Transcorp Power is strategically aligning itself with the changing landscape of the Nigerian Electricity Supply Industry (NESI), which is moving towards a bilateral contract framework between generation and distribution companies.
Nnorom announced that the company has already established a Power Purchase Agreement (PPA) with Abuja Electricity Distribution Company and is currently engaged in advanced negotiations with additional distribution companies.
To tackle ongoing challenges in the sector, such as gas supply limitations and grid instability, Transcorp Power has made investments in alternative fuel sources and grid infrastructure to ensure reliable power generation.
The company remains committed to employee welfare by offering competitive salaries, comprehensive training programs, and a safe working environment, while also fostering strong relationships with local communities.
With improved financial performance, increased generating capacity, and a strategic emphasis on market opportunities, Transcorp Power is optimistic about sustained growth in 2025. “We are confident in our ability to navigate market challenges and continue delivering strong returns to our shareholders,” Nnorom stated.
Peter Ikenga, Managing Director of Transcorp Power Plc, emphasized the company's robust financial performance in recent years and presented strategic initiatives designed to sustain its positive growth.
He noted consistent growth over the past five to six years, with annual revenue compounding at over 40%. Specifically, between 2023 and 2024, revenue increased by 115% and profit by 165%. Mr. Ikenga confirmed that this growth trajectory is expected to continue.
Transcorp Power concluded 2024 with an available capacity of 625MW, an increase from 500MW at the beginning of the year.
Ikenga indicated that the company's generating capacity will increase by 150 MW by the end of 2025, resulting in a total capacity of 775 MW. This expansion will yield increased revenue, enhanced profitability, and improved shareholder returns.
Ikenga highlighted the company's commitment to operational excellence and efficiency as fundamental to its success. He stated that the company's strategic focus extends beyond capacity expansion to encompass enhanced operational efficiency and effective cost management, thereby ensuring that revenue growth translates into improved profitability.
The CEO further reassured shareholders of the company's dedication to ongoing reinvestment aimed at bolstering its market position.
“With the support of our board and the trust of our shareholders, we are entering an exciting phase. By year-end, shareholders can expect a bumper period of returns and sustained company growth,” IIkenga remarked.
He commended the strong ties the company has with local communities, describing them as "the most peaceful, cooperative, and supportive."
Ikenga also mentioned several impactful initiatives that directly benefit the communities in which the company operates.
“Our Transcorp Power School continues to transform lives by providing quality education, while our vocational skills program equips young people with practical skills and seed funding to start their own businesses, empowering them to become employers themselves”, he explained.
Ikenga emphasized that Transcorp Power's community development initiatives will expand proportionally with the company's growth. He stated that Transcorp Power is significantly committed to the well-being of its surrounding communities and that, as operational capacity and financial performance improve, community programs will be scaled accordingly to ensure that growth benefits are broadly distributed.
With an ambitious plan to increase generating capacity and a strong emphasis on operational efficiency, Transcorp Power is set for another year of substantial growth.
Both shareholders and local communities stand to gain as the company builds on its solid foundation and pursues its mission to power Nigeria's future. Ikenga emphasized a continued focus on sustained growth, enhanced returns, and shared prosperity.