
Transcorp Power Plc (formerly Transcorp Power Limited) delivered a powerful first-quarter performance in 2025, reporting a pre-tax profit of N43.283 billion — a 50.43% rise from N28.772 billion in Q1 2024. Profit after tax soared even higher, climbing 62% to N32.637 billion.
The strong results reflect not just Transcorp Power’s operational efficiency, but also broader tailwinds across Nigeria’s electricity market, following the introduction of the Band A tariff regime last year.
The Band A tariff system came into effect in 2024 to allow power distribution companies (DisCos) and generating companies (GenCos) to charge premium rates for customers enjoying a minimum of 20 hours of electricity supply per day.
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Transcorp Power, one of Nigeria’s largest power generators, has clearly been a major beneficiary of these reforms. The company’s Q1 2025 revenue surged to N105.442 billion, up 55.38% from N67.862 billion in the corresponding period last year. This quarterly revenue already represents 34.5% of its full-year 2024 revenue, setting a strong pace for 2025.
Energy delivery remained the backbone of Transcorp’s revenue mix, contributing 73% of turnover. Importantly, international market revenue climbed from 18% to 26.82%, suggesting Transcorp Power is not just riding domestic tariff improvements but also strategically expanding its footprint outside Nigeria.
Margins Stay Strong Despite Rising Costs
Cost of sales grew by 52.38% year-on-year to N50.412 billion, largely driven by higher natural gas and fuel costs — which together make up 91% of production expenses. Nevertheless, this cost increase was outpaced by revenue growth, lifting gross profit to N55.031 billion, a 58.23% increase. The gross margin stood firmly at 52%, highlighting Transcorp’s ability to protect profitability even amid higher input costs.
Administrative expenses rose sharply by 74.14% year-on-year to N7.453 billion, reflecting wage increases, inflationary pressures, and expansion costs. Still, the company maintained a healthy operating profit margin of 42%, despite a slight compression of about 2.5 percentage points.
Meanwhile, net finance costs rose moderately by 15.26% to N1.012 billion, demonstrating effective debt management in a high-interest environment.
Earnings and Balance Sheet Strength
Transcorp Power’s earnings per share (EPS) rose to N4.35 — up 61.71% year-on-year — already surpassing 40% of its full-year 2024 EPS. This trajectory reinforces expectations of record earnings for the full year, buoyed by higher tariffs and stronger collections across the power industry.
The company’s balance sheet expanded by 13% to N447 billion within the first quarter alone. Trade and other receivables still account for about 79.8% of total assets, a lingering structural challenge typical in Nigeria’s power sector where payment bottlenecks persist, despite improving collections.
Market Response and Sector Outlook
On the stock market, Transcorp Power has posted a year-to-date gain of 1.39% in 2025, after closing 2024 with a strong 36.33% full-year gain that lifted its market capitalization to N2.7 trillion.
Analysts suggest that investor sentiment is still cautious, pending broader reforms in the sector, but that Transcorp’s fundamentals are pointing towards sustained profitability. The ongoing implementation of the Band A tariff structure and improving sector liquidity could catalyze a market rerating in the months ahead.
The Band A reform, aimed at improving cost recovery and encouraging investment in the sector, is expected to yield more results for the sector players. Earlier this month, Nigeria’s Minister of Power announced that the electricity sector generated a record N700 billion in revenue in 2024 — a figure that stands as the highest annual collection in the sector’s history. This represents a major improvement from the chronic liquidity crises that have plagued the industry for years.
If the broader policy framework holds, and the Band A tariff regime continues, Transcorp Power could be entering a period of accelerated and sustained growth, much to the delight of its investors.