Transcorp Power Repays $300m Loan as Shareholders Approve N37.5bn Dividend

•To boost power generation to 775megawatts

James Emejo in Abuja

The Chairman, Transcorp Power, Mr. Emmanuel Nnorom, yesterday disclosed that the company has fully repaid the $300 million credit facility it accessed in 2012 to boost its operations, alluding to the firm’s credit worthiness in the financial sector.

Speaking at the company’s 2024 Annual General Meeting (AGM) in Abuja, he said the company had improve power generation to 650 Megawatts (MW) in January 2024 to 625 MW as of the end of the year.

This came as shareholders approved the sum of N37.5 billion as dividend for the financial year, which translated to N3.50 per share.

The shareholder specifically commended the company for the positive financial performance amid inherent challenges in the business environment.

Nnorom further disclosed that shareholders will receive a total dividend of N5 per share, including an interim dividend of N1.50 paid in July 2024 and a proposed final dividend of N3.50 for shareholder approval.

He said despite a challenging macroeconomic environment, Transcorp Power had remained resilient and committed to delivering value to its shareholders.

He said the company’s revenue surged by 115 per cent to N305.9 billion in 2024 from N142.1 billion in 2023.

He said operating profit also increased N114.03 billion from N64.63 billion while profit before tax more than doubled to N113.3 billion in 2024 from N52.8 billion in 2023.

Nnorom added profit after tax (PAT) recorded a leap of 165 per cent to N80.01 billion from N30.2 billion.

He further noted that one of the company’s key achievements in 2024 was the full repayment of its $215 million foreign acquisition loan, significantly improving its financial stability.

He said, “This outstanding financial performance reflects our unwavering commitment to value creation for our shareholders.”

The chairman also revealed that the company planned to generate 50 per cent of the electricity consumed in the country in the near future, up from its current share of 12 per cent.

He said, “The power we’re generating today, our target is 25 per cent of the power consumed in Nigeria. We are presently at about 12 per cent of power consumed in Nigeria. And the plan this year is to be at 15 percent. Our target is to be at 25 percent.”

He noted that the company was focused on improving gas supply as well as infrasturcture to support the industrial growth.

Managing Director/Chief Executive, Transcorp Power, Mr. Peter Ikenga, said the company had experienced consistent growth over the last five to six years, with revenue compounding annually at over 40 per cent.

He said, “Between 2023 and 2024 alone, we grew our revenue by 115 per cent and saw a 165 per cent increase in profit. Shareholders can expect this growth trend to continue.”

He said Transcorp Power ended 2024 with an available capacity of 625MW, up from 500MW at the start of the year, adding that the company planned to add another 150MW to its generating capacity by the end of 2025, bringing the total to 775MW.

Ikenga said, “This expansion directly translates to increased revenue, higher profitability, and stronger returns for our shareholders.”

He said, “We are not just focused on growing capacity; we are also enhancing operational efficiency and managing costs effectively. This strategy ensures that our revenue growth is matched by improved profitability.”

He added that the company was committed to continuous reinvestment aimed at strengthening its market position.

He said, “With the support of our board and the trust of our shareholders, we are entering an exciting phase. By year-end, shareholders can expect a bumper period of returns and sustained company growth.”