By Sofiyyah Layole
Beyond the headline figures, performance in Nigeria’s power sector is not merely about installed capacity, it is fundamentally about how effectively that capacity is deployed.
In this edition of Test of Strength, we turn our lens to two leading quoted operators: Transcorp Power Plc and Geregu Power Plc. Operating within the same regulatory framework, their business models, ownership structures, and Q2 2025 results reveal contrasting yet successful approaches to power generation and corporate strategy.
Revenue and Power generation
In the second quarter of 2025, Transcorp Power Plc extended its dominance in scale, recording a revenue of ₦}100.37 billion, a significant jump from ₦67.58 billion in Q2 2024. Geregu Power Plc, operating a leaner single-buyer model, posted ₦55.87 billion in revenue, up notably from ₦30.25 billion in the same period last year.
While Transcorp leads in absolute volume, Geregu’s 85% year-on-year revenue growth sharply outpaces Transcorp’s 48%, signalling faster market penetration or superior tariff management.
In terms of actual output, Transcorp generated a total of 1,261 gigawatt-hours (GWh) of electricity, representing a \14% year-on-year increase. Geregu delivered 752 GWh, marking a strong 36%} growth rate more than double Transcorp’s operational momentum.
This clearly indicates superior plant efficiency and utilization for Geregu during the quarter.
Margin vs. Volume
Profitability presented a clear divergence. Transcorp delivered ₦11.58 billion in Profit After Tax (PAT), a decline from ₦14.52 billion in Q2 2024.
Geregu, meanwhile, posted ₦9.75 billion in PAT, a substantial increase from \₦5.55 billion last year. Geregu’s disciplined cost structure allowed it to expand margins despite facing nationwide inflationary pressures and rising fuel costs, while Transcorp’s profit was eroded by cost increases.
This trend was further highlighted in operating profits. Transcorp’s Operating Profit fell to ₦14.53 billion from ₦21.79 billion in Q2 2024, while Geregu’s surged to ₦15.02 billion, up from ₦8.65 billion.
Although both companies faced increased costs of sales, Geregu not only managed its expenses better but also surpassed Transcorp in operating profit for the quarter, a critical indication of improved operational leverage.
Shareholder value
The picture of value creation tilted decisively toward the leaner operator. Geregu reported ₦3.90 in Earnings Per Share (EPS), significantly outperforming Transcorp’s ₦}m1.54. Though Transcorp’s net earnings were higher in absolute terms, Geregu’s notably lean capital structure delivered far more value per share, underscoring its operational precision and commitment to shareholder returns.
However, balance sheet strength remains Transcorp’s domain. The company reported ₦522.53 billion in total assets and ₦144.42 billion in equity, compared to Geregu’s \₦267.60 billion in assets and ₦51.50 billion in equity. Transcorp’s larger infrastructure base and deeper capital reserves reflect its well-expanded operational footprint and long-term stability.
Interestingly, cash flow performance highlighted Geregu’s efficiency. While Transcorp generated ₦27.93 billion in net cash from operating activities in Q2, Geregu actually posted a higher figure of ₦29.63 billion. Both companies maintained positive cash positions, but Geregu’s effectiveness in working capital management gave it a notable edge.
Conclusion
This comparative analysis reveals that Transcorp Power Plc wins on absolute scale, infrastructure depth, and overall capital strength. It offers a compelling case for long-term stability backed by a robust asset base and diversified ownership.
Yet, beyond these big figures, Geregu Power quietly outperformed on almost every measure of efficiency and shareholder value. Its spectacular revenue growth 85% vs 48% improved operating profit margin, and superior earnings per share are hallmarks of precision-driven, lean operations.
Both companies demonstrate resilience in a sector severely challenged by forex volatility, regulatory shifts, and infrastructure demands. Ultimately, the choice for an investor depends on their appetite, whether they seek the institutional breadth and capital depth of Transcorp or the precision-driven performance and faster growth trajectory of Geregu.