Transcorp Power Limited (TPL) increased its power generation capacity from an average of 470 MW in January 2022 to an average of 638mw as of September 2022.
Owen Omogiafo, the President and Group CEO of Transcorp Plc, disclosed this while speaking to the investment community and financial journalists during the company’s recent facts behind the figures event.
She said that Transcorp’s combined installed capacity of 1,938mw accounts for 15.5% of the total installed capacity in Nigeria which is about 12,522mw.
What caused this: Omogiafo explained that TPL signed gas contract agreements with the NPDC/NDW, Chevron, and Seplat to improve efficiency and secure a reliable and steady gas supply.
- “Also, TCN installed and energized a new 150mw 330/132/33KV interbus transformer at Delta IV Transmission substation Ughelli, Delta State. Thereby, improving TPL’s evacuation capacity. Given the recent increase in available capacity, steady gas supply, and improved evacuation capacity, TPL is looking to exceed its average generating capacity in the coming years,” she said.
She said that following the administrative handover of Transcorp Afam Power Plant (TAPL) in March 2021, Transcorp successfully increased and maintained the power plant’s capacity from 48mw at the time of takeover to 188mw, with minimum CAPEX requirements.
There were challenges: She stated that the ongoing gas challenges in the country impacted generation capacity. Notwithstanding the challenges, TAPL has devised some means to improve performance, including the commissioning of GT20 with an additional capacity of 138mw in September, execution of a gas supply agreement with AccuGas and HHOG, and ongoing discussion with other gas suppliers to ensure the company has steady gas supply.
According to the CEO, the GT20 has been non-operational for 15 years. With the improvement in installed capacity and gas supply, we are looking forward to finishing strong in 2022 and a solid start in 2023.
Key Projects/Initiatives: Omogiafo disclosed that the company launched a state-of-the-art Spa and wellness centre in Transcorp Hilton. The company also carried out renovation works on some existing gym facilities.
- “We have commenced the construction of an event centre in Transcorp Hilton Abuja that would cater to the growing demand for large-scale gatherings. This Event Centre, with a seating capacity of over 2,500 for multi-purpose events, is expected to be completed in Q4 2023. We intend to build a 5-star hotel, with relaxation and lifestyle features, located in the heart of Ikoyi. The project would be delivered by Q1, 2027.
- “Transcorp Hotels Plc remains committed to strong corporate governance practices. Within the year, we obtained CGRS Re-certification from the Nigerian Exchange Group (NGX). THP continues to exceed the benchmark. Our key focus going forward is to achieve the required Free Float percentage; 20% of the issued shares,” she explained.
Key Financial Highlights
- Gross Earnings rose by +12.45% to N96.245 billion from N 85.588 billion in Q3 2021
- Profit Before Tax grew by +47.71% to N20.867 billion in Q3 2022 from N 14.127 billion the previous year
- Net Operating Income increased by +14.53% to 31.524 billion from N27.525 billion in 2021
- Operating Expenses rose by +28.16% N15.175 billion in 2022 from N11.841 billion in 2021
Editing by Emmanuel Abara Benson