Transcorp Power Declares 775% PBT Jump to N28.77bn in Q1 2024

Olusola: Transcorp Hotels to focus on hospitality expansion

Transcorp Power Plc has demonstrated impressive financial performance in its released first quarter (Q1) ended March 31, 2024 unaudited financial statements with N28.77 billion profit before tax, which was a growth of 775 per cent from the N3.29 billion billion reported in corresponding first quarter ended March 2023.

This was just as the Managing Director/CEO, Transcorp Hotel Plc, Dupe Olusola, another subsidiary of the Transcorp Group, yesterday, said the company's 2024 and beyond projections was to expand its frontier not only in Abuja, Lagos, but across the country and transit into major cities in Africa.

Speaking at the virtual 2023 investors call conference, Olusola, revealed that the company within its Transcorp Hilton in Abuja would convert the existing warehouse to a 3,000- 5,000 capacity event/lifestyle centre.

However, Transcorp Power declared N20.1 billion profit after tax in Q1 2024, representing an increase of 665 per cent from N2.6 billion reported in Q1 2023.

In March 2024, the Nigerian Exchange Limited (NGX) admitted 7.5 billion shares of Transcorp Power at N240 per share to its Main Board.

One of the electricity generating subsidiaries of Nigeria’s leading, listed conglomerate, Transnational Corporation Plc (Transcorp Group), recorded N67.86 billion in gross earnings, compared to N21.04 billion reported in Q1 2023, reflecting a significant increase of 223 per cent.

The strong performance is further demonstration of the company’s strategic focus and effective execution, as part of Transcorp Group’s implementation of its integrated power strategy.

In addition, Transcorp Power total assets increased to N276.2 billion as of March 31, 2024, up from N223.3 billion in Q4 2023.

Commenting on the financial highlights, the Chief Financial Officer, Evans Okpogoro, said, "The Q1 2024 results saw a gross margin of 51 per cent, a cost to income ratio of 70 per cent and net profit margin of 30 per cent compared to Q1 2023 gross margin of 37 per cent, cost to income ratio of 87 per cent and net profit margin of 13 per cent.

“This highlights the remarkable operational efficiency gains of the Company. Transcorp Power has continued to grow its revenue aggressively and consistently over the last five years. We expect that by year end 2024, we will see a similar growth trajectory recorded between FY 2022 and FY 2023.”

Transcorp Power MD/CEO, Peter Ikenga, commented on the results, “We are pleased to report further robust financial performance, despite sectoral challenges such as gas supply issues and macroeconomic challenges. Our ability to sustain growth amidst this environment shows the resilience of our business model and the efficient execution of our strategic initiatives.

"We remain committed to leveraging our strengths to capitalise on emerging opportunities, drive sustainable growth and provide superior value to all our stakeholders. We will continue to prioritise ingenuity, operational excellence, corporate governance, and stakeholder engagement, to deliver superior value for our long-term growth,” he added.