Transcorp Power Plc (formerly Transcorp Power Limited) has delivered a stellar performance in the first quarter of 2025, reporting a pre-tax profit of N43.283 billion, representing a 50.43% year-on-year increase from N28.772 billion in Q1 2024.
Profit after tax also grew by 62%, reaching N32.637 billion.
This performance further consolidates its strong footing in Nigeria’s power sector and suggests operational efficiency.
Key highlights (Q1 2025 vs Q1 2024)
- Cost of sales: N50.412 billion +52.38% YoY
- Gross profit: N55.031 billion +58.23% YoY
- Admin expenses: N7.453 billion +74.14% YoY
- Operating profit: N44.454 billion +51.46% YoY
- Net finance cost: N1.012 billion +15.26% YoY
- Earnings per share: N4.35 +61.71% YoY
Analysis
Revenue: The power company recorded revenue of N105.442 billion, up by 55.38% from N67.862 billion in the same period last year.
This Q1 revenue figure already accounts for 34.5% of its 2024 full-year revenue, suggesting the company is on track for another good year if momentum continues.
The primary revenue driver remains energy delivered, which increased its contribution to 73%, with the local market accounting for an equal percentage.
Importantly, international revenue contribution rose from 18% to 26.82%, indicating expanding market penetration beyond Nigerian borders and diversification of revenue streams.
Expense overview and margins
Cost of sales rose by 52.38% YoY to N50.412 billion, largely driven by natural gas and fuel costs, which make up around 91% of total cost of sales.
Despite this, the cost of sales grew slower than revenue, helping to improve gross profit to N55.031 billion, a 58.31% increase YoY, resulting in a gross margin of 52%.
Administrative expenses climbed significantly by 74.14% YoY to N7.453 billion, slightly compressing the operating profit margin by 2.5 percentage points.
However, with an operating profit margin of 42%, Transcorp Power maintains a robust profitability profile.
Net finance costs were relatively stable, rising only 15.26% to N1.012 billion, showing effective interest cost management amidst a high-rate environment.
Earnings per share & outlook
Earnings per share (EPS) jumped to N4.35, a 61.71% increase YoY. This figure already represents over 40% of the total FY 2024 EPS, reinforcing expectations that the company is on pace to surpass its previous year’s earnings, a strong signal for investors.
Balance sheet strength
Transcorp Power’s balance sheet expanded to N447 billion, up 13% in just three months, reflecting a solid growth trajectory.
Trade and other receivables make up a significant 79.8% of total assets, highlighting the challenging dynamics of the power sector.
Market performance
Transcorp Power has seen a moderate 1.39% YtD gain in 2025.
- However, it closed 2024 with an impressive 36.33% YtD gain, pushing its market capitalization to N2.7 trillion, solidifying its position among Nigeria’s elite publicly traded companies.
- Overall, Transcorp Power’s Q1 2025 performance highlights resilience, operational strength, and strategic market expansion.
- Despite rising administrative costs, the company delivered strong margins and profit growth.
With EPS already surpassing 40% of last year’s full-year earnings and rising international market share, Transcorp Power appears set for a strong 2025.
