Transcorp Power, which was listed on the NGX on March 4 will distribute a total dividend of N34.7 billion.
This includes a final dividend of N24.5 billion for the fiscal year 2023 and an interim dividend of N11.25 billion for the first half of 2024.
Transcorp Power Plc has announced an interim dividend of N1.50 per share for the first half of 2024, resulting in a total dividend distribution of N11.25 billion across its 7.5 billion shares, each valued at 50 kobo.
According to a corporate disclosure on the NGX website, the dividends will be distributed to shareholders whose names appear in the register of members at the close of business on August 6, 2024.
Payout ratio of 30.6%
Based on its 2024 half-year net profit of N36.8 billion, the company’s total dividend distribution of N11.25 billion represents a dividend payout ratio of 30.6%.
Combining its FY 2023 net profit of N30.23 billion with a final dividend payout of N24.5 billion, Transcorp will have distributed 51.8% of its publicly declared net profit as dividends.
Note that the group’s net profit for the 2024 half-year is 22% greater than the N30.23 billion net profit posted in FY 2023. Also, the announced interim dividends currently translate to a dividend yield of 0.4%, a quite meagre figure considering the size of the shares.
No public offering has been made yet
The company was listed on the NGX by way of introduction, with about 14 entities holding 100% of its shares. Seven entities hold 98.46% of the company’s total shareholding, with 1.52% of its shareholding held by seven entities.
Transnational Corporation Plc is the major shareholder, with a 51.57% shareholding. Since listing on the NGX with a share price of N264, the stock has appreciated by 41.6% to reach a share price of N373.90, giving it a market capitalization of N2.8 trillion.
With a free-floating percentage of 1.52%, the company’s dividend payment so far will be distributed among its seven major shareholders, with Transnational Corporation Plc pocketing about N17.9 billion of the sum.
The next significant shareholder, RichPoint Limited, is set to receive approximately N11.55 billion, while WoodRock Energy Resources will receive around N2.59 billion.
Competition’s dividends history
The company’s major competitor on the NGX, Geregu Power Plc was listed on the NGX in 2022. Geregu Power Plc is also a regular dividend payer, with a final dividend payment of N8 per share for both FY 2022 and 2023.
Geregu Power distributed final dividends totalling N20 billion for FY 2023, which is 18% less than the N24.5 billion paid by Transcorp Power for the same period.
However, Geregu Power surpassed Transcorp Power in terms of the dividend payout ratio, achieving a 125% payout ratio compared to Transcorp Power’s 78%.
Geregu Power does not have a history of paying interim dividends.