By Chukwuma Umeorah
Transcorp Power Plc reported a 13 per cent decline in profit after tax to N38.50 billion in the first half of 2026 as revenue fell 11.6 per cent to N181.97 billion, with the power generation company attributing the weaker performance to recurring transmission infrastructure vandalism that constrained electricity evacuation.
The company’s unaudited financial statements for the six months ended June 30, 2026 filed on tbt Nigerian Exchange Limited (NGX), showed that profit before tax declined to N54.99 billion from N58.73 billion in the corresponding period of 2025, while earnings per share weakened to N5.13 from N5.87.
A breakdown of the results showed that capacity charge revenue declined to N43.02 billion from N55.00 billion, while revenue from energy delivered fell to N138.94 billion from N150.80 billion. Total revenue from contracts with customers therefore dropped to N181.97 billion, compared with N205.81 billion in the corresponding period of 2025.
Cost of sales also reduced to N112.15 billion from N128.18 billion, resulting in a gross profit of N69.82 billion, compared with N77.62 billion recorded in the first half of 2025. Operating profit declined to N55.65 billion from N59.07 billion, while finance costs fell to N1.36 billion from N6.41 billion. Despite the decline in earnings, the company expanded its balance sheet during the six-month period.
Commenting on the results, Managing Director/Chief Executive Officer of Transcorp Power Plc, Peter Ikenga, linked the weaker financial performance to persistent attacks on transmission infrastructure.
“Our H1 2026 performance is a reflection of the resilience of our business operations despite significant sector-wide existential challenges., Regrettably, recurring transmission line vandalisation materially constrained our ability to evacuate available generation capacity. Nonetheless, we continued to deliver strong profitability, maintain operational efficiency, and strengthen our balance sheet.” He said.
“We remain committed to working with relevant stakeholders to put an end to transmission line vandalisation and to further improving operational performance, power generation supply reliability, and creating sustainable value for our shareholders. We remain highly confident that we will recover lost ground in H1 2026 and finish FY 2026 stronger than FY 2025.”
Total assets increased by about 9.9 per cent to N619.02 billion as at June 30, 2026 from N563.48 billion at the end of December 2025. Shareholders’ funds rose to N189.34 billion from N183.40 billion, while retained earnings increased to N140.90 billion from N132.41 billion.
The growth in assets was driven largely by increases in receivables and borrowings. Trade and other receivables climbed to N529.42 billion from N468.57 billion at the end of 2025, while trade receivables alone rose to N501.62 billion from N419.68 billion.
The accounts also showed that the company continues to carry substantial outstanding receivables from electricity sales. According to the notes to the financial statements, Transcorp Power is entitled to interest on electricity bills not paid within the contractual period under its Power Purchase Agreement with the Nigerian Bulk Electricity Trading Plc (NBET). However, it has not recognised any interest income since it began supplying electricity to NBET in 2015 because reconciliation is still ongoing and no firm commitment has been received from the government regarding payment.
Based on the company’s calculations, the unrecognised interest component amounted to N72.2 billion in 2025.
Borrowings increased significantly during the review period. Non-current borrowings rose to N59.00 billion from N24.55 billion, while total interest-bearing loans and borrowings increased to N63.63 billion, compared with N30.69 billion at the end of 2025. The company disclosed that it secured a Fidelity Bank term loan maturing between 2026 and 2030.
Cash and cash equivalents, however, fell sharply to N667.93 million from N2.22 billion at the end of December 2025, while the company recorded a net cash outflow of N5.57 billion from operating activities during the first six months of the year.
The financial statements also showed that the company paid N30 billion in dividends during the period, while retained earnings continued to rise despite the lower profit recorded in the first half of the year.
In addition, Transcorp Power maintained compliance with the Nigerian Exchange’s free float requirement. As at June 30, 2026, the company had a free float of 844.39 million shares, representing 11.26 per cent of its issued share capital and valued at about N207.30 billion. Transnational Corporation Plc remained the largest shareholder with a 50.99 per cent stake, while Rich Point Limited held 25.41 per cent.
The Chief Finance Officer, Dr. Evans Okpogoro, said the company improved operating efficiency despite the moderation in revenue.
“Our half-year results show sustained operating discipline in a period of moderated revenue. While revenue stood at N181.97 billion and Profit After Tax at N38.50 billion, the quality of our earnings improved across every efficiency metric.
“Gross margin expanded to 38.4 per cent from 34.7 per cent in H1 2025. Operating margin increased to 30.6 per cent from 28.5 per cent in 2025, and Profit Before Tax margin increased to 30.2 per cent from 28.5 per cent in 2025. These gains reflect our cost optimisation efforts and disciplined financial management, positioning us to continue delivering sustainable value for our shareholders.”
The directors stated that they had assessed the company’s ability to continue as a going concern and had no reason to believe it would not remain in operation in the foreseeable future. The unaudited financial statements were approved by the board on July 17, 2026.
(The Sun)