Transcorp Power H1 profit drops to N54.99bn, declares N1.5...

Transcorp Power Plc recorded a 6.37 per cent decline in profit before tax to N54.99 billion for the half-year ended June 30, 2026, as recurring transmission line vandalism constrained power evacuation and weakened second-quarter earnings, despite the company declaring an interim dividend of N1.50 per share for shareholders.

The power generation company said its half-year pre-tax profit fell from N58.73 billion recorded in the corresponding period of 2025, while second-quarter pre-tax profit plunged 61.11 per cent quarter-on-quarter to N15.40 billion, compared with N39.59 billion posted in the first quarter of 2026. However, the second-quarter figure was broadly flat compared with N15.44 billion achieved in the same period last year. Despite the earnings pressure, the board approved an interim dividend of N1.50 per ordinary share, payable electronically on July 23, 2026, to shareholders on the register as of July 20, 2026, subject to applicable withholding tax.

Managing Director and Chief Executive Officer, Peter Ikenga, attributed the weaker performance largely to persistent transmission line vandalism, which limited the evacuation of available generation capacity during the review period.

He said the company nevertheless maintained profitability and operational efficiency, expressing confidence that it would recover the lost ground in the second half of the year and close the 2026 financial year stronger than in 2025.

Chief Financial Officer, Evans Okpogoro, noted that the company improved its operating efficiency despite lower revenue, with gross margin rising to 38.4 per cent, operating margin to 30.6 per cent, and pre-tax profit margin to 30.2 per cent, driven by cost optimisation and disciplined financial management.

Revenue declined 11.58 per cent to N181.96 billion from N205.80 billion in the corresponding period of 2025 as earnings from energy delivered fell to N138.94 billion from N150.80 billion, while capacity charge revenue dropped to N43.02 billion from N55.00 billion.

Energy sales accounted for about 76.4 per cent of total revenue, while capacity charges contributed 23.6 per cent.

Revenue from local customers declined to N116.66 billion from N146.77 billion, although international customer revenue improved to N65.30 billion from N59.04 billion.

The impact of weaker revenue was partly cushioned by lower operating costs, with cost of sales falling to N112.15 billion from N128.18 billion. Natural gas and fuel expenses were reduced to N102.33 billion from N109.17 billion, while repairs and maintenance costs declined sharply to N4.52 billion from N13.99 billion.

Administrative expenses, however, rose to N16.71 billion from N14.75 billion, including N8.07 billion spent on operating, maintenance and commercial activities.

Finance costs also declined significantly to N1.36 billion from N6.41 billion, although finance income fell to N1.34 billion from N3.45 billion.

Profit after tax consequently dropped 12.6 per cent to N38.50 billion from N44.05 billion, while earnings per share declined to N5.13 from N5.87 recorded a year earlier.

The company’s balance sheet expanded during the period, with total assets increasing 9.86 per cent to N619.02 billion from N563.48 billion at the end of December 2025.

Trade and other receivables rose to N529.42 billion from N468.57 billion, while total interest-bearing borrowings more than doubled to N63.63 billion from N30.69 billion.

Cash and cash equivalents, however, declined sharply to N667.93 million, compared with N2.22 billion at the end of 2025.

On the Nigerian Exchange, Transcorp Power currently has a market capitalisation of about N1.84 trillion. Its share price has declined about 20 per cent year-to-date, closing at N245.50 on July 17, 2026, compared with its opening price of N307.00 at the beginning of the year.