Transcorp Power H1 pre-tax profit drops 6.37% to N54.99 billion, declares N1.50 dividend

Transcorp Power Plc has reported a pre-tax profit of N54.99 billion for the first half of 2026, down 6.37% year-on-year from N58.73 billion in H1 2025. The company still declared an interim dividend of N1.50 per share, payable on July 23, 2026.

The weaker result was driven largely by a sharp decline in second quarter performance. Q2 pre-tax profit fell 61.11% quarter-on-quarter to N15.40 billion from N39.59 billion in Q1 2026, and was also marginally lower than the N15.44 billion recorded in Q2 2025.

Dividend and key Q2 figures

The interim dividend of N1.50 per ordinary share is subject to appropriate withholding tax deduction and approval. It will be paid electronically on July 23, 2026, to shareholders whose names appear in the Register of Members as of the close of business on July 20, 2026, and who have completed the required e-dividend registration.

Key highlights for Q2 2026 compared to Q2 2025 show a mixed picture. Revenue fell 12.95% year-on-year to N87.37 billion from N100.37 billion. Gross profit dropped 11.95% to N19.89 billion from N22.59 billion. Operating profit, however, rose 31.66% to N19.13 billion from N14.53 billion. Pre-tax profit slipped 0.26% to N15.40 billion from N15.44 billion. Profit after tax declined 24.01% to N8.80 billion from N11.58 billion. Earnings per share fell 46.10% to N0.83 from N1.54.

Management blames transmission line vandalism

Management said recurring transmission line vandalism constrained the evacuation of available generation capacity during H1 2026. MD/CEO Peter Ikenga said the company maintained profitability and operational efficiency despite the challenges. He expressed confidence that Transcorp Power would recover the ground lost in H1 and finish FY 2026 stronger than FY 2025.

CFO Evans Okpogoro highlighted improved efficiency metrics. Gross margin rose to 38.4%, operating margin to 30.6%, and pre-tax profit margin to 30.2%. He attributed this to cost optimisation and disciplined financial management.

Revenue and cost breakdown

The pressure on revenue was broad-based. Revenue from energy delivered, the largest source, fell to N138.94 billion from N150.80 billion. Capacity-charge revenue declined to N43.02 billion from N55.00 billion. Energy delivered accounted for about 76.4% of total H1 2026 revenue, while capacity charges contributed about 23.6%.

Revenue from local customers fell to N116.66 billion from N146.77 billion. Revenue from international customers, however, increased to N65.30 billion from N59.04 billion. The decline in revenue was partly cushioned by a lower cost base. Cost of sales dropped to N112.15 billion from N128.18 billion. Natural gas and fuel costs, the largest component, fell to N102.33 billion from N109.17 billion. Repairs and maintenance costs dropped sharply to N4.52 billion from N13.99 billion.

Administrative expenses increased to N16.71 billion from N14.75 billion, including N8.07 billion in operating, maintenance and commercial costs. Finance costs declined to N1.36 billion from N6.41 billion, while finance income fell to N1.34 billion from N3.45 billion. Despite lower finance costs, profit after tax declined 12.6% to N38.50 billion from N44.05 billion. Earnings per share fell to N5.13 from N5.87 in H1 2025.

Balance sheet and market reaction

The balance sheet expanded during the period, but this came with a significant build-up in receivables and borrowings. Trade and other receivables rose to about N529.42 billion from N468.57 billion. Total interest-bearing borrowings increased to N63.63 billion from N30.69 billion. Cash and cash equivalents fell sharply to N667.93 million from N2.22 billion in December 2025.

Transcorp Power is currently valued at a market capitalisation of N1.84 trillion. The stock began 2026 at N307.00 per share and has since recorded a 20% year-to-date decline, closing at N245.50 on July 17, 2026. During the June selloff, the share price was flat, implying a 0% month-to-date return for June.

For Nigerian investors, the drop in cash and the rise in borrowings signal tighter liquidity, even as the company holds onto dividend payouts. The revenue decline from local customers also points to ongoing challenges in the domestic power market, though growth in international revenue offers some buffer.