Transcorp Power Plc has reported a 19.8% year-on-year increase in profit after tax to ₦44.05 billion for the first half of 2025, according to its financial statements filed with regulators. This performance came despite mounting cost pressures and broader economic uncertainties.
Revenue rose significantly by 52.0% year-on-year to ₦205.8 billion, supported by robust growth across the company’s major revenue lines. A breakdown of the figures shows capacity charge income climbed 30.8%, while revenue from energy delivered soared by 61.5%.
Cross-border demand remained strong, with international sales contributing 28.7% to total revenue—an improvement from 22.0% in the same period last year, according to a report by CardinalStone Securities Limited.
However, the earnings boost was partially offset by a steep 76.9% rise in cost of goods sold (COGS), which reached ₦128.2 billion. This was largely driven by a 64.1% increase in natural gas and fuel costs. Repairs and maintenance expenses also quadrupled during the period, leading to a sharp decline in gross margin to 37.7%, down from 46.5% in H1 2024.
Further weighing on performance were a 28.6% rise in impairment losses on financial assets and a 67.5% jump in administrative expenses. These contributed to a drop in the company’s EBIT margin, which fell to 28.7% from 37.8% in the prior-year period.
Although Transcorp Power recorded a combined ₦6.1 billion in interest income and foreign exchange gains, these were largely eroded by a 61.0% surge in finance costs, which climbed to ₦6.4 billion.
Key profitability indicators also moderated. Annualized return on assets (ROA) stood at 19.2%, and return on equity (ROE) came in at 65.0%, both below the 26.9% and 96.5% recorded in the first half of 2024.
Despite the cost pressures, the company declared an interim dividend of ₦1.50 per share, representing a payout ratio of 25.5%, signaling continued commitment to shareholder returns.
On a quarterly basis, the company’s Q2 2025 performance was affected by a 97.5% year-on-year spike in COGS, which outpaced the 48.5% revenue growth. This led to margin compression. However, a lower effective tax rate of 25.0%, compared to 34.6% in Q2 2024, helped cushion the impact, resulting in a post-tax profit of ₦11.6 billion for the quarter.
