Transcorp Power Plc has set ambitious targets to boost its power generation capacity, aiming to increase it to 740 Megawatts (MW) by December 2024, up from the current 550MW capacity.
The Managing Director/Chief Executive Officer of Transcorp Power, Peter Ikenga, revealed this during the presentation of the company’s report for the year 2023 on Monday.
Despite facing challenges in the previous year, Ikenga noted that Transcorp Power managed to enhance its earnings. The company is on the verge of finalizing power sale agreements with three electricity distribution companies in Nigeria.
For the financial year 2023, Transcorp Power reported gross earnings of N142 billion, marking a significant 57.3 percent growth from the N90 billion recorded in 2022. The surge in energy delivery, expansion charge, and international market expansion contributed to this growth, accounting for 18 percent of its revenue.
The energy firm achieved a gross profit of N75 billion, a notable increase from N42 billion year-on-year. The profit before tax reached N52.7 billion, with a profit after tax standing at N30.2 billion. The company recommended a dividend of N23.46 billion for the Financial Year 2023.
Ikenga expressed confidence in Transcorp Power’s ability to surpass its growth trajectory in the coming years, aiming for a peak generation capacity of 740MW by the end of 2024. He revealed imminent plans to add 125MW to the grid within weeks, followed by another 125MW by the end of summer.
Looking ahead, the company targets a peak generation of 611MW in the financial year and plans to further increase its capacity to 850MW post-2023.
Additionally, Transcorp Power is strategizing to provide electricity to 45 percent of unserved and underserved Nigerians through renewable energy sources. Cross-border electricity sales to West African countries are also on the agenda to bolster revenue streams.
Ikenga highlighted the necessity of selling power to neighboring countries due to limitations faced by distribution companies (DisCos) in distributing generated power.
Transcorp Power’s investment in the 972MW Ughelli Power Plant in 2013 has positioned it as one of the leading power companies in Nigeria, boasting one of the largest gas-fired power-generating stations in the country.
The company’s listing on the Nigeria Exchange Limited in March, ahead of projections, reflects its commitment to growth and expansion under the leadership of its parent company’s chairman, Tony Elumelu.
