Transcorp Power Plc, a power subsidiary of Transnational Corporation Plc (Transcorp Group) is targeting an annual revenue growth in excess of N500 billion by 2031.
The company, which listed its shares via introduction on the Main Board of the Nigerian Exchange (NGX) on Monday in Lagos, adding more than N1.8 trillion to the market capitalisation of NGX and further boosting liquidity in the Nigerian capital market, also gained 10 per cent on the first day of trading, to close at N264 per share, up from the listing price of N240 per share.
Transcorp Power boosted the overall NGX market capitalisation by N1.8 trillion as it listed 7.5 billion shares at N240.00 per share on the main board of NGX.
The listing, which comes on the 10th anniversary of Transcorp Power’s founding, demonstrates the Company’s strong corporate governance, operational excellence, and value creation for stakeholders. This track record was earlier recognised in May 2023, when the Company became the first successor Power Generating Company in Nigeria to receive its post-privatization discharge from the National Council on Privatisation, having met and surpassed the key performance indicators set out by the Bureau of Public Enterprises (BPE).
Transcorp Power operates the Ughelli Power Plant in Delta State, with an installed capacity of 972MW. At the time of acquisition, the plant had an available capacity of 160MW. Transcorp Power invested and increased the available capacity to 680.83MW (a 227 per cent increase) within four years of acquisition, surpassing the 5-year target of 670MW set by the Bureau of Public Enterprises. Transcorp Power Plc is a member of the West African Power Pool and a participant in the ECOWAS Regional Electricity Market. Today, Transcorp Power supplies electricity to the ECOWAS Regional Market.
Speaking, MD/CEO of Transcorp Power, Peter Ikenga said, Transcorp Power has witnessed transformation in its ownership, through the takeover of a government-owned asset into a leading private sector led organisation.
He stated that, Transcorp Power presents a unique opportunity in Nigeria’s power generation sub-sector, which is pivotal to the country’s economic growth.
He explained that, Transcorp Power has 18 gas turbines of different capacities comprising 12 Hitachi H25 gas turbines of 23.8MW capacity each and six Frame 9E General Electric (GE) gas turbines of 105MW capacity each.
According to Ikenga, Transcorp Power’s Plant has three major sections respectively referred to as Delta II, Delta III and Delta IV. Each ‘Delta’ has gas turbines (GTs) of different capacities.
Through effective maintenance and upgrading programmes, Transcorp Power has continued to ensure optimal performance of its turbines, irrespective of the section of the Plant in which they are located.
“Through effective maintenance and upgrading programmes, Transcorp Power has continued to ensure optimal performance of its turbines and balance of plant. Whilst installed capacity has remained same in the past few years, Transcorp Power has been able to steadily improve on its capacity utilisation rate. In 2023, the Company’s utilisation rate stood at 78 per cent,” he pointed out.
Also, chief finance officer of Transcorp Power, Evans Okpogoro added that the company’s revenue has grown impressively over the past five years, driven by a surge in energy delivery and capacity charge, coupled with the lucrative expansion into international markets.
Okpogoro explained that the company has sustained and grown its EBITDA margins, thereby strengthening its pedigree as one of the leading power generation companies in Nigeria.
The chairman of NGX Group, Dr. Umaru Kwairanga commended the listing of 7.5 billion ordinary shares of Transcorp Power on the Main Board of NGX, saying the listing of Transcorp Power’s 7.5 billion shares is a testament to the resilience, innovation, and excellence within Nigeria’s power sector.
He added that it also underscores NGX’s pivotal role in driving economic growth and development in our nation.
The acting CEO of NGX, Jude Chiemeka stated that with Transcorp Power boasting a remarkable market capitalization of over N1 trillion, marking the first listing of the year, underscores the pivotal role the NGX plays in shaping our economic landscape and highlights the Exchange’s significance and contribution to the Nigerian economy.
He added that the NGX is not just a platform for trading stocks; it is a catalyst for economic growth and development, and we recognise our responsibility in supporting the government’s privatisation efforts, particularly within the energy sector.
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