Transcorp Power Plc has unveiled its ambition to increase its share of Nigeria’s electricity generation to 25% in the near future, up from the current 12%.
During the company’s Annual General Meeting (AGM) in Abuja on Tuesday, Chairman of the Board, Mr. Emmanuel Nnorom, shared this goal.
“Our current target is to generate 25% of Nigeria’s electricity consumption. At present, we account for approximately 12%. This year, we aim to reach 15%, with a long-term goal of achieving 25%,” Nnorom stated.
He also emphasized the company’s commitment to enhancing gas supply and infrastructure to foster industrial development.
8Discussing the company’s performance, Nnorom stated, “Despite facing macroeconomic challenges, we achieved remarkable revenue growth of 115% in 2024, increasing from N142.1 billion in 2023 to N305.9 billion. Our operating profit for the year reached N114.03 billion, up from N64.63 billion in 2023. Additionally, profit before tax rose from N52.8 billion in 2023 to N113.3 billion in 2024, while profit after tax surged by 165%, climbing from N30.2 billion in FY 2023 to N80.01 billion in FY 2024.”
Nnorom emphasized the company’s enhanced financial stability, noting that in 2024, Transcorp Power fully repaid its $215 million foreign currency acquisition loan taken out in 2014. This complete repayment led to a reduction in the company’s gearing ratio from 64.48 percent in 2023 to 29.70 percent in 2024.
“The repayment of our USD loan has significantly bolstered our financial position, allowing us to explore more growth opportunities,” he remarked.
The company made its debut on the Main Board of the Nigerian Exchange (NGX) on March 4, 2024, starting with a market capitalization of N1.80 trillion, which rose to N2.70 trillion by December 31, 2024.
Regarding dividends, Nnorom stated, “In alignment with our commitment to delivering lasting value to our valued shareholders, the Board of Directors has recommended and disbursed an interim dividend of N1.50k per ordinary share in July 2024. The Board has now proposed a total dividend of N5 per share, which includes the interim dividend of N1.50k and a final dividend of N3.50k per share, pending approval at the 12th Annual General Meeting. This results in a total dividend payout of N37.5 billion.”
Throughout the year, Transcorp Power successfully added 125MW of capacity, raising its available capacity from 500MW at the beginning of the year to 625MW by the end of 2024. This enhancement is anticipated to boost the company’s power generation capabilities in 2025.
“The power sector is vital for Nigeria’s economic development. Despite facing challenges such as gas supply limitations and grid stability issues, we have taken proactive measures by securing alternative fuel sources and investing in grid infrastructure to reduce risks,” Nnorom stated.
He also highlighted that the Nigerian Electricity Supply Industry (NESI) is moving towards a bilateral contract model between generation and distribution companies, replacing the existing system where the Nigerian Bulk Electricity Trading Plc (NBET) serves as an intermediary.
“Transcorp Power is strategically positioned to take advantage of this transition, having signed a Power Purchase Agreement (PPA) with Abuja Electricity Distribution Company and engaging in advanced discussions with other distribution companies,” he added.
