Transcorp Power Tops Performers, Gains 19.3% after Hefty Earnings

The market placed higher value on Transcorp Power Plc shares as the power generating become investors toast after third quarter earnings release on the Nigerian Exchange.

The utilities company was valued at about N2.7 trillion after it gained N436.5 billion in two trading session after the company released its earnings scorecard. 

Topping gainers chart, the company’s share price rose by 19.3% to N359.90 from N301.70 last week due to bargain hunting in energy stock on the Nigerian Exchange platform.

Transcorp Power Plc share price become more expenses after its earnings announcement ton the Nigerian Exchange platform.  At the close of trading session on Friday, the Nigerian Exchange valued Transcorp Power’s 7,500,000,000.00 shares outstanding in the equities market for N2.699 trillion.

In its unaudited results, Transcorp Power Plc profit after tax surge by 185.8% year on year to N58.4 billion from N20.444 billion in the comparable period in 2023.

The company’s improved bottom line performance was supported by its impressive revenue growth.  Details from its unaudited financial statement showed that revenue increased by 152.8% year on year to N223.6 billion from N88.439 billion in the equivalent period in 2023.

Breakdown showed that revenue derived from energy delivered increased by 164.4% to N149.4 billion while income from capacity charge spiked by 132.2% to N74.2 billion.

At the same time, its cost of sales rose by 176.6% year on year to N127.1 billion from N45.948 billion in the comparable period – driven increased natural gas & fuel costs.

Similarly, operating expenses surged by 197.6% on account of higher administrative expenses and impairment loss on financial assets, which compressed the company’s earnings before interest and taxes.

Transcorp Power net finance income amounted to N538.4 million in contrast to N10.4 billion loss in 9M:2023 following a material uptick in interest income and foreign exchange gains, which eclipsed the increase in finance cost, according to analysts,

The company reported a 233.1% year on year jump in income tax expense to N22.7 billion in line with the strong performance and a higher effective tax rate of 28.0% versus 25.0% in the equivalent period.

Transcorp Power Meets Nigerian Exchange Free Float

As of September, Transcorp Power Plc, with about 7.5% free float said it has met the Nigerian Exchange requirement for listed companies on the main board. #Transcorp Power Tops Performers, Gains 19.3% after Hefty Earnings

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