Transcorp Power reports N43.283bn pre-tax profit in Q1 2025

Transcorp Power Plc, formerly known as Transcorp Power Limited, has posted an impressive first-quarter result for 2025, with pre-tax profits climbing to ¦ 43.283 billion. This marks a year-on-year increase of 50.43 per cent compared to the ¦ 28.772 billion reported in the first quarter of 2024.

Net profit also showed remarkable growth, rising by 62 per cent to ¦ 32.637 billion, reflecting both operational efficiency and a firm hold on its position within Nigeria’s power sector.

Revenue for the quarter reached ¦ 105.442 billion, representing a 55.38 per cent increase from ¦ 67.862 billion recorded in the same period last year. Notably, this figure already constitutes 34.5 per cent of the company’s total revenue for the whole of 2024, suggesting a strong run rate that, if sustained, points to another successful financial year.

The principal source of revenue remains energy delivered, which now contributes 73 per cent of the company’s turnover, mirroring the same percentage derived from the domestic market. However, international revenue share has also grown significantly, jumping from 18 per cent to 26.82 per cent. This signals a broader footprint across borders and a strategic diversification of earnings streams.

Cost of sales rose to ¦ 50.412 billion, up 52.38 per cent year-on-year. The increase is largely attributable to natural gas and fuel costs, which together account for approximately 91 per cent of the company’s total cost of sales.

Despite this, revenue grew at a faster rate than expenses, allowing gross profit to rise to ¦ 55.031 billion, a 58.31 per cent year-on-year increase, and pushing gross margin up to 52 per cent.

Administrative costs also saw a notable rise, climbing 74.14 per cent to ¦ 7.453 billion. This uptick slightly narrowed the company’s operating profit margin by 2.5 percentage points. Nevertheless, Transcorp Power maintains a healthy operating margin of 42 per cent, indicating strong underlying profitability.

Net finance costs showed only a modest increase of 15.26 per cent to ¦ 1.012 billion, reflecting prudent management of interest expenses despite a high-interest rate environment.

Earnings per share (EPS) surged by 61.71 per cent year-on-year to ¦ 4.35. This figure alone already surpasses 40 per cent of the full-year EPS recorded in 2024, reinforcing the likelihood that Transcorp Power is well on its way to outperforming last year’s earnings. This will no doubt be viewed favourably by investors.

The company’s balance sheet also expanded, with total assets reaching ¦ 447 billion, a 13 per cent increase within just three months. A large portion of these assets, 79.8 percent, is made up of trade and other receivables, pointing to persistent structural challenges within Nigeria’s power sector, particularly around payments and collections.

In terms of market performance, Transcorp Power has gained 1.39 per cent year-to-date in 2025. This follows a strong 2024, during which the company saw a year-to-date gain of 36.33 per cent, propelling its market capitalisation to ¦ 2.7 trillion and securing its status among Nigeria’s most valuable publicly listed firms.

Altogether, Transcorp Power’s first-quarter results for 2025 present a portrait of a company in robust health. While administrative expenses are on the rise, the firm has nonetheless delivered strong margins, significant profit growth, and meaningful progress in expanding its international footprint.

With earnings momentum building and market confidence growing, Transcorp Power appears well-positioned for a solid year ahead.