Transcorp Power Declares N142bn Gross Earnings, N23.46bn Dividend

•Company seeks to boost generation by additional 250 megawatts by December, says power transmission remains major problem

James Emejo in Abuja

Transcorp Power Plc, yesterday announced an increase to N142.1 billion in the 2023 financial year, representing 57.3 per cent compared to N90.3 billion in 2022.

The company’s operating profit also grew to N64.63 billion from N35.87 billion the previous year while Profit Before Tax (PBT) surged by 84.4 per cent to N52.8 billion compared to 28.6 billion in 2022.

The firm also said it planned to boost power generation capacity to an additional 250 megawatts by December, in addition to its existing 650 megawatts,

Speaking at the company’s 11th Annual General Meeting (AGM) – the first since it went public in March, Chairman, Transcorp Power Plc, Mr. Emmanuel Nnorom, said the performance further demonstrated the firm’s resilience amid evolving market dynamics.

This is as shareholders also approved N23.46 billion as dividends for the year under review, which translated to N3.13 kobo per share – and commended the company’s professionalism and commitment to growing value for shareholders.

Nnorom highlighted the company’s achievements over the past year, while assuring shareholders of the company’s commitment to maintaining its exceptional financial results as well as improving the lives of Nigerians.

He said, “Last year’s strong performance is a testament to the resilience of our business strategies, underpinned by a culture of strong corporate governance. We know that with our strategy and the dedication of our team, we will continue to deliver exceptional value to all stakeholders.”

However, he told THISDAY in an interview that transmission remained the greatest challenge in the power delivery process as what was often generated ended up being wasted.

The chairman said, “I will say the greatest problem is the transmission side of the process because even if you generate 300-500 megawatts; if you are not able to transmit because you cannot store power, you just have to lose that completely. So, it is the transmission.

“But I also think that from the new directives issued by NERC, there are some processes to unbundle some aspects of that, and also, the new Electricity Act signed by President Bola Tinubu has also energized the states to go on their own regulatory path and generate power. So, I think a lot will happen in the next couple of years.”

Also, in his remarks, Managing Director/Chief Executive, Transcorp Power, Mr. Peter Ikenga, tied the company’s success to the rigorous execution of its strategies and deliberate focus on enhancing operational efficiency.

He said the company’s focus was to ensure that all the power generated in the plant is evacuated, pointing out that it is working with the Transmission Company of Nigeria (TCN) in this regard.

He said, “We will continue to work with all the stakeholders within the power value chain to improve power supply to all Nigerians. Today is our first AGM since we listed on the floor of the NGX and it’s truly an exciting day for us and we are very happy. You were in the hall and you heard the commendations from shareholders; their support was quite encouraging and their energy was palpable.

“My team and I are poised to do greater things than the things we achieved in 2023. And so, to our shareholders, the trajectory you see over the past five years – consistent growth in revenues, profitability – we will continue to sustain that trajectory and even surpass last year’s performance.”

He said, “We already have programmes in place and we are recovering additional capacity. By the end of this month, we hope to bring in an additional 125 megawatts to our existing capacity and by the end of the year, we hope to bring another 125 megawatts to make it a total of 250 megawatts.

“The investments are already ongoing and the execution is ongoing. We have our team working day and night to make sure we meet the objectives we’ve set for ourselves in 2024.”

He said further, “As we celebrate last year’s achievements, we remain committed to continuous improvement. This year, our strategic focus is on recovering plant available capacity, enhancing operational excellence and efficiency, and rigorously implementing our plant maintenance schedule.

“We will continue prioritising and investing in human capital, aiming to enhance in-house capabilities. Our commitment to incident and injury-free operations remains strong, as we leverage our talent, foster ingenuity, and nurture teamwork.

“We are determined to build on our successes and leverage strategic investment opportunities to deliver even greater performance and sustainable growth for our stakeholders.”

However, one of the company’s shareholders, Mrs. Bisi Bakare, particularly commended Transcorp Power for continuously exceeding shareholder expectations.

She said, “I am very satisfied with Transcorp Power’s performance. It demonstrates their commitment to creating value for us shareholders, which is what we are all here for.”

The company’s social responsibility activities were also commended at the AGM, having contributed to the country’s sustainable development, particularly in the areas of education, community development, and environmental sustainability.