Transcorp Power Plc reported N32.64 billion profit after tax for the first quarter (Q1) 2025, according to the company’s unaudited financial statement released earlier today.
This was better than the N20.14 billion recorded in Q1 2024 due to the company’s improved operational efficiency and strong revenue growth from its core power generation business.
According to the statement of profit or loss and other comprehensive income, revenue from contracts with customers rose by 55 percent year-on-year to N105.44 billion from N67.86 billion.
The revenue growth was largely driven by improved power output and more efficient dispatch, alongside enhanced market collections.
Cost of sales increased to N50.41 billion from N33.08 billion in Q1 2024 due to higher input costs associated with increased power generation.
Despite this, gross profit grew to N55.03 billion from N34.78 billion, representing a 58 percent increase.
Administrative expenses rose to N7.45 billion, from N4.28 billion while impairment losses on financial assets also increased to N3.03 billion, up from N1.09 billion in the corresponding period.
Transcorp Power recorded a solid operating profit of N44.54 billion, up from N29.41 billion in Q1 2024. The growth in operating profit was supported by scale efficiencies and cost optimisation strategies.
On the financing side, finance income rose to N1.74 billion, up from N1.30 billion a year earlier while finance costs increased to N2.76 billion from N2.18 billion due to higher interest expenses on debt servicing.
The company also reported a loss of N250.44 million under other gains and losses, compared to a gain of N239.50 million in Q1 2024.
Profit before income tax was reported at N43.28 billion, a 50 percent increase from N28.77 billion recorded in the same period last year.
After accounting for an income tax expense of N10.65 billion, Transcorp Power posted a net profit of N32.64 billion, up from N20.14 billion in Q1 2024.
There were no items of other comprehensive income reported for the period, making the total comprehensive income equal to the net profit of N32.64 billion.
Basic and diluted earnings per share (EPS) increased to N4.35, compared to N2.69 in the previous year, reflecting enhanced shareholder value.
Outlook
Transcorp Power’s Q1 2025 results demonstrate strong earnings momentum supported by robust revenue growth and disciplined cost management.
The company remains strategically positioned to benefit from increasing power demand and recent reforms in Nigeria’s electricity market.
With a strong start to the year and sustained operational improvements, investors are likely to maintain confidence in Transcorp Power’s performance trajectory as it delivers stable returns and contributes to Nigeria’s energy stability.
Leave a Comment