Transnational Corporation Plc (Transcorp) recorded a pretax profit of N50.6 billion for Q1 2026, according to its filing on the Nigerian Exchange, reflecting a steady start to the financial year.
The figure represents a modest 2.55% year-on-year increase from N49.4 billion in Q1 2025, supported by a resilient revenue base and improved finance income.
Group revenue settled at N125.1 billion, down from N143.7 billion, as the power business remained the dominant driver with energy sales contributing 63% and capacity charges 18.8%, while the hospitality arm delivered 12.6% from room services.
Net finance income rebounded to N1.2 billion from a N4.2 billion loss previously, supporting bottom-line profitability, while earnings per share rose to N2.16 from N1.92.
Key highlights (Q1 2026 vs Q1 2025)
- Revenue: N125.1 billion vs N143.7 billion
- Cost of sales: N54.4 billion vs N70.3 billion
- Operating profit: N50.1 billion vs N54.3 billion
- Finance income: N1.2 billion vs a loss of N4.2 billion
- Foreign exchange loss on financing activities: N793.6 million, up 26.22% YoY
- Pretax profit: N50.6 billion, up 2.55% YoY
- Retained earnings: N203.1 billion, up 12.12% YoY
Driving the numbers:
A closer look shows that of the N125.1 billion revenue in Q1 2026, the power business led the mix with N79.1 billion from energy sales and N23.5 billion from capacity charges, while the hospitality arm contributed N15.7 billion in room revenue as the third-largest driver.
Other revenue streams included N5.5 billion from food and beverage sales and N442.4 million from shop rentals, alongside smaller supporting income lines.
With revenue declining to N125.1 billion from N143.7 billion in Q1 2025, the cost of sales also eased to N54.5 billion, down from N70.3 billion in the prior period.
The drop in revenue from the power business is a result of the frequent system collapses recorded in the power sector since the start of the year. Transcorp Power owns Ughelli Power and Afam Power with a combined capacity of about 2 GW.
As a result, gross profits settled at N70.5 billion, slightly lower than the N73.3 billion recorded in the corresponding period of the previous year.
Transcorp reported other income of N553.7 million, largely from insurance claims and scrap sales, which, after impairment and administrative costs, left operating profit at N50.1 billion, down 7.59% year-on-year.
The key boost to the group’s performance came from a rebound in net finance income to N1.2 billion, recovering from a N4.2 billion loss in the prior year, which supported overall earnings.
After accounting for FX losses of N793.6 million, pretax profit rose to N50.6 billion from N49.4 billion, while profit after tax settled at N37.8 billion following a tax expense of N12.7 billion.
Balance sheet:
On the balance sheet, total assets expanded to N1.07 trillion from N1.002 trillion, with trade and other receivables at N598 billion as the largest asset class, followed by property, plant, and equipment at N311.3 billion.
Equity strengthened during the period, with retained earnings of N203.1 billion forming the largest component, as total equity rose to N392.8 billion from N353.3 billion.
Total liabilities increased to N517.2 billion from N502.4 billion, driven largely by trade and other payables, which stood at N394.1 billion as the biggest obligation.
Market reaction
Shares of Transcorp are up 3.74% year-to-date on the Nigerian Exchange, currently priced at N47.10.
Market reaction may follow in subsequent sessions, particularly from this level, if investors interpret the financials positively.
