Update shared on 12 Nov 2025
Executive Summary
Transcorp Power Plc delivered a robust performance for the nine months ended 30 September 2025, with revenues increasing by 38% YoY to ₦308.54 billion (from ₦223.56 billion in 9M 2024), reflecting higher electricity generation and improved contractual operations. Gross profit rose 24% YoY to ₦119.67 billion, supported by cost optimization initiatives and efficient management of cost of sales.
Operating profit reached ₦94.05 billion, up from ₦80.58 billion in the prior period, despite higher administrative expenses and an increase in impairment charges to ₦7.69 billion. Finance costs remained elevated at ₦8.65 billion, partially offset by finance income of ₦3.98 billion and foreign exchange gains of ₦1.69 billion. Profit before tax improved 12.4% YoY to ₦91.18 billion, while profit after tax rose 17% YoY to ₦68.42 billion. Total comprehensive income, which includes fair value gains on equity investments of ₦2.62 billion, was ₦71.05 billion, reflecting both strong operational performance and investment appreciation. Basic and diluted earnings per share rose to ₦9.12, from ₦7.79 in 9M 2024.
Financial Highlights – Statement of Profit or Loss
₦’000
9M 2025
9M 2024
YoY Change
Revenue
308,540,802
223,556,414
+38%
Cost of Sales
188,872,363
127,093,172
+49%
Gross Profit
119,668,439
96,463,242
+24%
Administrative Expenses
17,929,720
11,605,816
+54%
Operating Profit
94,049,583
80,582,949
+16.6%
Finance Income
3,976,205
4,880,192
–18.5%
Finance Cost
8,646,250
7,916,184
+9.2%
Foreign Exchange Gain
1,689,516
3,574,365
–52.7%
Profit Before Tax
91,176,197
81,121,322
+12.4%
Profit After Tax
68,424,412
58,421,049
+17.0%
Total Comprehensive Income
71,046,644
58,421,049
+21.6%
EPS (₦)
9.12
7.79
+17%
Interpretation:
- Revenue growth was primarily driven by higher generation output and improved operational efficiency.
- Cost of sales increased due to rising fuel costs, but gross margin improved due to disciplined cost management.
- Foreign exchange gains moderated compared to prior year, reflecting lower FX volatility in the period.
- Investment gains contributed positively to total comprehensive income.
Balance Sheet Overview
₦’000
30-Sep-2025
31-Dec-2024
Change
Total Assets
536,703,056
396,782,267
+35.3%
Non-Current Assets
93,690,861
87,691,017
+6.8%
Current Assets
443,012,195
309,091,250
+43.3%
Inventories
3,224,924
2,367,501
+36.2%
Trade & Other Receivables
432,148,858
298,388,501
+44.8%
Cash & Cash Equivalents
7,638,413
8,335,248
–8.4%
Total Liabilities
376,530,799
270,156,653
+39.3%
Non-Current Liabilities
38,540,177
40,347,503
–4.5%
Current Liabilities
337,990,622
229,809,150
+47.0%
Total Equity
160,172,258
126,625,614
+26.5%
Retained Earnings
109,415,007
78,490,595
+39.4%
Interpretation:
- Strong asset growth driven by higher receivables and current assets reflecting operational expansion.
- Equity increased 26.5%, underpinned by retained earnings growth and revaluation gains.
- Liabilities grew in line with operational scale, but non-current borrowings remained stable.
- Cash levels remained relatively stable despite increased working capital requirements.
Operational Highlights
- Revenue Growth: Driven by improved plant availability and contractual billing.
- Cost Management: Administrative and operational efficiencies supported margin expansion.
- Investment Gains: Fair value gains on equity investments contributed positively to total comprehensive income.
- Financial Stability: Equity growth and stable borrowings underpin balance sheet strength.
Strengths
- Robust top-line growth and strong profitability.
- Significant contribution from investment income enhances earnings quality.
- Healthy balance sheet with growing equity base.
Weaknesses
- Current liabilities grew significantly, reflecting working capital needs.
- Cash levels slightly declined despite higher operations.
- FX exposure remains a risk factor for foreign-denominated costs.
Outlook
Transcorp Power Plc is positioned for continued growth in FY 2025, supported by higher electricity demand, contractual expansions, and strategic investments. Management focus on operational efficiency, cost discipline, and receivables management will further sustain profitability and balance sheet strength.
Analyst View
“Transcorp Power Plc’s performance highlights resilience in revenue generation and operational control. Strong gross margins, robust profit growth, and revaluation gains on investments reinforce the Company’s sustainable earnings trajectory, while maintaining a solid capital base to support future expansions.”
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