Transcorp Power Plc Reports ₦29.7 Billion Profit in Q1 2026 as Revenue Declines to ₦94.6 Billion

Transcorp Power Plc has reported a profit after tax of ₦29.70 billion for the first quarter (Q1) ended March 31, 2026, representing a decline from ₦32.64 billion recorded in the corresponding period of 2025, as revenue and operating performance moderated.

The company’s unaudited financial statements showed that revenue fell by 10.3 percent to ₦94.59 billion from ₦105.44 billion in Q1 2025.

Cost of sales declined to ₦44.66 billion from ₦50.41 billion, but this was not sufficient to offset the drop in revenue, leading to a reduction in gross profit to ₦49.93 billion, down from ₦55.03 billion recorded a year earlier.

Operating profit stood at ₦36.53 billion, compared to ₦44.54 billion in the same period of 2025 as administrative expenses rose to ₦11.49 billion from ₦7.45 billion.

The increase in operating costs weighed on overall profitability despite a reduction in impairment losses, which declined to ₦2.23 billion from ₦3.03 billion.

Finance income also dropped sharply to ₦800.47 million from ₦1.74 billion, while finance costs swung to a charge of ₦2.46 billion compared to a credit of ₦2.76 billion recorded in the prior period, further impacting earnings.

Profit before tax declined to ₦39.59 billion from ₦43.28 billion, while income tax expense eased to ₦9.90 billion from ₦10.65 billion. Consequently, profit after tax settled at ₦29.70 billion.

Earnings per share weakened to ₦3.96 from ₦4.35, reflecting the decline in net earnings during the period.

Despite the softer earnings performance, Transcorp Power recorded an improvement in total comprehensive income, which rose to ₦31.56 billion from ₦32.64 billion, supported by a fair value gain of ₦1.86 billion on equity investments.

On the balance sheet, total assets increased to ₦613.42 billion as of March 31, 2026, up from ₦563.48 billion at the end of December 2025.

The growth was driven primarily by a significant increase in trade and other receivables, which rose to ₦508.69 billion from ₦468.39 billion.

Cash and cash equivalents also improved to ₦10.40 billion from ₦2.22 billion, indicating stronger liquidity during the quarter.

Total equity expanded to ₦214.96 billion from ₦183.40 billion, supported by growth in retained earnings, which climbed to ₦162.10 billion from ₦132.41 billion.

However, total liabilities rose to ₦398.46 billion from ₦380.08 billion, driven by increases in borrowings and trade payables.

Non-current borrowings surged to ₦35.12 billion from ₦24.55 billion, while current liabilities remained elevated at ₦359.87 billion.

The company’s performance reflects a mixed outlook, with balance sheet expansion and improved liquidity offset by declining revenue and rising operating costs.

Going forward, the company’s ability to stabilise revenue growth, manage cost pressures, and optimise financing structure will be critical in sustaining profitability in the current operating environment.