Transcorp Power Plc, one of the power-generating subsidiaries of Transnational Corporation Plc, the conglomerate led by Nigerian billionaire Tony Elumelu, delivered a resilient first-half performance despite persistent attacks on Nigeria’s transmission infrastructure that limited its ability to evacuate available electricity. Even as revenue and earnings eased, the company remained profitable and strengthened its balance sheet during the six months ended June 30.

The Ughelli-based power producer reported revenue of N181.97 billion ($131.91 million) for the first half of 2026, down from N205.81 billion ($149.19 million) in the same period a year earlier, according to its unaudited interim financial statements. Profit before tax slipped to N54.99 billion ($39.87 million) from N58.73 billion ($42.58 million), while profit after tax declined to N38.5 billion ($27.91 million) from N44.05 billion ($31.93 million).

Efficiency gains counter lower top-line revenue

Revenue from electricity sales remained the company’s main source of income. Capacity charges contributed N43.02 billion ($31.19 million), while energy delivered generated N138.94 billion ($100.72 million). Cost of sales fell to N112.15 billion ($81.30 million) from N128.18 billion ($92.92 million), supporting profitability despite weaker revenue. Gross profit stood at N69.82 billion ($50.62 million), compared with N77.62 billion ($56.27 million) a year earlier, while gross margin improved to 38.4 percent from 34.7 percent as operating costs declined.

Operating profit came in at N55.65 billion ($40.35 million), compared with N59.07 billion ($42.83 million) in the first half of 2025. Administrative expenses increased to N16.71 billion ($12.11 million) from N14.75 billion ($10.69 million), but finance costs dropped sharply to N1.36 billion ($0.99 million) from N6.41 billion ($4.65 million), easing pressure on the bottom line.

Chief Finance Officer Dr. Evans Okpogoro said the company’s results reflected disciplined execution despite lower revenue. “Our half-year results show sustained operating discipline in a period of moderated revenue. While revenue stood at N181.97 billion and profit after tax at N38.5 billion, the quality of our earnings improved across every efficiency metric.”

The company’s financial position also improved during the reporting period. Total assets rose 9.9 percent to N619.02 billion ($448.75 million) from N563.48 billion ($408.49 million) at the end of 2025, supported mainly by higher trade receivables and increased borrowings. Shareholders’ funds climbed to N189.34 billion ($137.26 million) from N183.4 billion ($132.95 million), while retained earnings increased to N140.9 billion ($102.14 million) from N132.41 billion ($95.99 million), underscoring the company’s ability to grow despite the difficult operating environment.

Power producer confronts grid disruptions

Managing Director and Chief Executive Officer Peter Ikenga said vandalism of transmission infrastructure remained the company’s biggest challenge during the first half of the year, limiting electricity evacuation even when generation capacity was available. “Our H1 2026 performance is a reflection of the resilience of our business operations despite significant sector-wide existential challenges. Regrettably, recurring transmission line vandalization materially constrained our ability to evacuate available generation capacity.”

Ikenga said Transcorp Power would continue working with government agencies and other stakeholders to address attacks on transmission infrastructure while improving operational performance and the reliability of electricity supply. “We remain highly confident that we will recover lost ground in H1 2026 and finish FY 2026 stronger than FY 2025,” he said.

The interim results also showed growing working capital requirements. Trade and other receivables increased to N529.42 billion ($383.80 million) from N468.39 billion ($339.57 million) at the end of December 2025, while borrowings rose to N63.63 billion ($46.13 million) from N30.69 billion ($22.25 million). The company also maintained investments valued at N22.68 billion ($16.44 million) and reported retained earnings of N140.9 billion ($102.14 million) after paying N30 billion ($21.75 million) in dividends during the period.

A subsidiary of Transnational Corporation Plc, Transcorp Power operates the Ughelli power plant in Delta State and is one of Nigeria’s largest independent electricity producers, supplying power to the national grid. The latest results highlight both the opportunities and constraints facing the country’s power sector, where demand for electricity remains strong but transmission bottlenecks continue to limit the amount of power that can reach consumers.