Power constraints cut Transcorp revenue 13% as profit falls

Transmission bottlenecks and gas supply constraints have dragged down the nine-month earnings of Transnational Corporation Plc (Transcorp Group), exposing the financial cost of Nigeria’s unreliable power infrastructure despite improved profit margins and a stronger balance sheet.

The diversified conglomerate recorded revenue of N357.4 billion for the nine months ended September 30, 2026, down 13.3 per cent from N412.4 billion in the corresponding period of 2025, according to its unaudited financial results filed with the Nigerian Exchange.

Profit before tax fell 10.5 per cent to N111.4 billion from N124.5 billion, while profit after tax declined 17.8 per cent to N75.1 billion from N91.4 billion. Earnings per share also dropped to 429 kobo from 534 kobo.

The weaker performance was largely attributed to reduced electricity evacuation at Transcorp Power Plc as transmission infrastructure and gas supply constraints limited output during the period.

The results highlight how infrastructure failures can undermine the earnings of power investors, even where generation capacity is available. When electricity cannot be delivered efficiently to the grid, generators lose potential revenue while the wider economy continues to bear the cost of inadequate supply.

Despite the decline in earnings, Transcorp improved its profit-before-tax margin to 31.2 per cent from 30.2 per cent, reflecting cost controls and operating efficiencies across its businesses.

Its balance sheet also strengthened. Total assets rose 13 per cent to N1.13 trillion from N1 trillion at the end of December 2025, while shareholders’ equity increased 9.7 per cent to N387.8 billion from N353.4 billion.

Cash and cash equivalents more than doubled to N45.9 billion from N21.9 billion, improving the group’s liquidity and providing greater flexibility to fund operations and strategic investments.

The performance across its businesses was mixed. Transcorp Power increased shareholders’ funds by 8.9 per cent to N199.8 billion and expanded cash and cash equivalents more than fourfold to N10.3 billion.

Transcorp Hotels Plc, meanwhile, grew profit after tax by five per cent to N15.5 billion, increased its net profit margin to 22.3 per cent and reduced net finance costs by 36 per cent. Its total assets rose 29 per cent to N206.8 billion.

The hospitality subsidiary benefits from the group’s investments in the 670-room Transcorp Hilton Abuja and the 5,000-capacity Transcorp Centre, positioning it to earn revenue from business travel, tourism and major events.

President and Group Chief Executive Officer, Owen Omogiafo, said the group was working with stakeholders to address industry constraints affecting electricity delivery while leveraging its hospitality investments to support business and tourism.

Group Chief Financial Officer, Festus Izevbizua, said the revenue decline reflected power evacuation difficulties caused by vandalised transmission infrastructure and gas supply constraints.

The results reinforce the economic importance of fixing Nigeria’s electricity value chain. For power investors, reliable gas supply and transmission infrastructure are essential to converting installed generation capacity into revenue. For manufacturers and other businesses, improved electricity delivery could reduce dependence on costly self-generation, lower operating expenses and support productivity.

Transcorp’s stronger cash position and wider profit margin provide some protection against the difficult operating environment. However, a sustained recovery in revenue and earnings will depend partly on whether the sector can resolve the infrastructure constraints preventing available power from reaching consumers.