Transcorp Power reports N43.283 billion pre-tax profit in Q1 2025, up 50.43%

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.

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.

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 (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.

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.

Transcorp Power has seen a moderate 1.39% YtD gain in 2025.

Transcorp Power has seen a moderate 1.39% YtD gain in 2025.

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.