Transcorp Power’s H1 pre-tax profit dips 6.37% to N54.99 billion, declares N1.50 dividend

Transcorp Power Plc has released its H1 2026 results for the period ended June 30, 2026, reporting a pre-tax profit of N54.99 billion, representing a 6.37% YoY decline from N58.73 billion in H1 2025.

The decline in H1 pre-tax profit was driven in part by a weaker second-quarter performance. Q2 pre-tax profit fell 61.11% quarter-on-quarter to N15.40 billion from N39.59 billion in Q1 2026, while it was also marginally lower than the N15.44 billion recorded in Q2 2025.

Despite the weaker earnings performance, the company declared an interim dividend of N1.50 per ordinary share, subject to appropriate withholding tax deduction and approval.

The dividend will be paid electronically on July 23, 2026, to shareholders whose names appear in the Register of Members as of the close of business on July 20, 2026, and who have completed the required e-dividend registration

Key Highlights (Q2 2026 vs Q2 2025)

• Revenue: N87.37 billion (Down 12.95% YoY from N100.37 billion)
• Gross profit: N19.89 billion (Down 11.95% YoY from N22.59 billion)
• Operating profit: N19.13 billion (Up 31.66% YoY from N14.53 billion)
• Pre-tax profit: N15.40 billion (Down 0.26% YoY from N15.44 billion)
• Profit after tax: N8.80 billion (Down 24.01% YoY from N11.58 billion)
• Earnings per share: N0.83 (Down 46.10% YoY from N1.54)
• Total assets: N619.02 billion (Up 9.86% from N563.48 billion at December 2025).
• Cash balance: N667.93 million (Down 69.91% from N2.22 billion in December 2025).

Management commentary

Management said recurring transmission line vandalism constrained the evacuation of available generation capacity during H1 2026.

Commenting on the results, MD/CEO Peter Ikenga said the company maintained profitability and operational efficiency despite the challenges, expressing confidence that it would recover the ground lost in H1 and finish FY 2026 stronger than FY 2025.

CFO Evans Okpogoro also highlighted improved efficiency metrics, noting that gross margin rose to 38.4%, operating margin to 30.6% and pre-tax profit margin to 30.2%, which he attributed to cost optimisation and disciplined financial management.

Driving the numbers

The pressure on Transcorp Power’s top line was broad-based across its core revenue streams in the first half of 2026.

• Revenue from energy delivered, the company’s largest revenue source, fell to N138.94 billion from N150.80 billion, while capacity-charge revenue declined to N43.02 billion from N55.00 billion.
• Energy delivered accounted for about 76.4% of total H1 2026 revenue, while capacity charges contributed about 23.6%.
• Revenue from local customers fell to N116.66 billion from N146.77 billion, although revenue from international customers increased to N65.30 billion from N59.04 billion.

The decline in revenue was partly cushioned by a lower cost base. Cost of sales dropped to N112.15 billion from N128.18 billion, with natural gas and fuel costs, the largest component, declining to N102.33 billion from N109.17 billion.

Repairs and maintenance costs also fell sharply to N4.52 billion from N13.99 billion. This helped explain why gross profit declined at a slower pace than revenue and supported the improvement in gross margin highlighted by management.

Administrative expenses, however, increased to N16.71 billion from N14.75 billion, including N8.07 billion in operating, maintenance and commercial costs.

Overall, these helped contain the decline in operating profit to 5.79%, compared with the 11.58% contraction in revenue.

Finance costs declined to N1.36 billion from N6.41 billion, although finance income also declined to N1.34 billion from N3.45 billion.

Despite the lower finance costs, profit after tax declined by 12.6% to N38.50 billion from N44.05 billion, consequently pushing earnings per share down to N5.13 from N5.87 in H1 2025.

Balance sheet

The balance sheet expanded during the period, but this was accompanied by a significant build-up in receivables and borrowings.

• Trade and other receivables rose to about N529.42 billion from N468.57 billion, while total interest-bearing borrowings increased to N63.63 billion from N30.69 billion.
• At the same time, cash and cash equivalents fell to N667.93 million.

Market reaction

Transcorp Power is currently valued at a market capitalization of N1.84 trillion. The stock began 2026 at N307.00 per share and has since recorded a 20% YTD decline closing at N245.50 on July 17, 2026

During the June selloff, however, the share price was flat, implying a 0% MTD return for June based.