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Transcorp Power Reports Impressive 165% Growth in Profit After Tax for 2024 amid Dividend annoucement

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WaneInvestmentHouseNot Invested
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Published
January 27 2025
Updated
February 26 2025
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Transcorp Power has announced a remarkable 165% increase in profit after tax (PAT) for the fiscal year 2024, rising from N30.2 billion in 2023 to N80 billion. This impressive growth is attributed to a combination of factors, including an increase in tariff, operational efficiency, and cost optimization.

Key Point: Transcorp Power's PAT grew by 165% to N80 billion in 2024, driven by increased revenue, operational efficiency, and cost optimization.

The company's revenue also experienced significant growth, increasing by 115% from N142.1 billion in 2023 to N305.9 billion in 2024. Gross profit grew by 89%, from N75.4 billion to N142.2 billion.

Transcorp Power's Managing Director and CEO, Peter Ikenga, highlighted the company's achievements, including the complete repayment of its USD loan, which significantly reduced its gearing ratio. The company also reported improved financial stability, with a return on assets increasing from 13.53% to 20.17% and return on equity growing from 52.25% to 63.19%.

The company has also made significant progress in its strategic priorities, including increasing its available capacity from 500 megawatts to 625 megawatts within one year. Transcorp Power has also strengthened its partnership with Société Béninoise de Production d'Electricité (SBPE) of the Republic of Benin, increasing the contracted energy capacity sold to SBPE

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The user WaneInvestmentHouse holds no position in NGSE:TRANSPOWER. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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WaneInvestmentHouse'sFair Value
₦360.0
1.4% overvalued intrinsic discount
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PastFuture0940b20222023202420252026202720282029Revenue ₦940.0bEarnings ₦245.8b
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