Transcorp Power Plc, the owners of Ughelli and Afam power plants have posted a pre-tax profit of N51 billion, representing a 214% year-on-year growth from the N16.2 billion posted in H1 2023.
The power generation company which listed on the NGX in March 2024, recorded a revenue of N135.4 billion in H1 2024, which represents a 142% YoY growth from the N55.9 billion posted in H1 2023.
In H1 2024, Transcorp Power recorded a net profit of N36.8 billion, which is a 233% year-on-year growth from the N11.0 billion net profit posted in H1 2023.
Transcorp Power’s second quarter shows that the company recorded a revenue of N67.6 billion during the quarter, marking a 94% YoY improvement from the N34.9 billion revenue recorded in H1 2023.
Key Highlights H1 2024 vs H1 2023
- Revenue: N135.4 billion, +142% YoY
- Cost of sales: N72.5 billion, +148% YoY
- Gross profit: N63 billion, +136% YoY
- Operating profit: N51.2 billion, +122% YoY
- Foreign exchange gain: N1.1 billion, -123% YoY
- Profit before income tax: N51 billion, +214% YoY
- Profit for the period: N36.8 billion, +233% YoY
- Earnings per share: N4.90
- Total assets: N323 billion, +46% YoY
Commentary: The company’s revenue included N42 billion as capacity charge and N93.4 billion for energy delivered. Transcorp Power also recorded N29.8 billion as revenue from international customers.
During the period under review, the company recorded natural gas and fuel costs of N66.5 billion, marking a 166.5% growth from N25 billion recorded in H1 2023. Transcorp Power also incurred a repairs and maintenance cost of N2.55 billion, representing an 81% hike from the N1.4 billion incurred in H1 2023.
The company’s administrative expenses surged by 233% year-on-year to N8.8 billion, primarily driven by a significant 371% YoY increase in management fees, which rose from N1.1 billion to N5.2 billion as of H1 2024.
According to the financial statements, the company is owed N190.9 billion, an increase of N77 billion, from N114 billion at the start of the year. However, its debt to gas suppliers also increased to N101.5 billion, reflecting a 49% increase from N68 billion at the start of the year.
Transcorp Power’s financial liabilities rose by N10.3 billion in the first half of 2024 to hit N47.6 billion, following the complete repayment of its $215 million acquisition loan and the acquisition of a new N15 billion loan. Its liability on its term loans declined to N32.5 billion as of June 30, 2024, from N36.3 billion as at FYE 2023.
Interests on the group’s term loans ranged between 15.5% and 19%, however, some have now increased to 22.5%.
Transcorp Power owns a 15% stake in Joelan, the majority shareholders in Abuja Electricity Distribution Company (AEDC).
Transcorp Hotels owes the power company about N8.47 billion, a slight 3% decline from N8.7 billion at the start of the year.