Transcorp Power projects N500bn revenue in seven years

With it’s listing on the Nigerian Exchange Limited (NGX), Transcorp Power Plc is targeting an annual revenue growth in excess of N500 billion by the year, 2031.

Speaking at the Fact Behind Listing at the Nigerian Exchange Limited (NGX) on Monday, the Managing Director and Chief Executive Officer of Transcorp Power, Peter Ekenga noted that the company’s objective is to be the leading power generating in the country, with a revenue base of N500 billion in seven years.

Giving an outlook of the company, he explained that the company plans to hit the target by diversifying it’s energy mix by manking additional investments in renewable energy and off-grid solutions, adding that the company would continue its efforts around capacity recovery within the plant and further expansion of plants.

“We’re going to deepen and play not just within Nigeria but across the entire West Africa. We will continue to invest in technology. We will leverage on our strong corporate governance and sustainability framework. We will continue to leverage relationship with our strategic partners like our suppliers, key stakeholders.

Ekenga affirmed that the parent company Transcorp is a strong and vibrant brand, saying the Transcorp Power would leverage on the the brand which had been opening doors for the subsidiary in Nigeria and beyond.

The Company 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.

Speaking further, Peter Ikenga said Transcorp Power having witnessed transformation in its ownership, through the takeover of a government-owned asset into a leading private sector led organization.

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 utilization rate. In 2023, the Company’s utilization rate stood at 78 per cent.”

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, saying “we as an Exchange are determined to ensure that all sectors of Nigeria’s economy are fully represented on NGX and that the transparency, sustainability, ethical values, and private sector dynamism that drives the Exchange drives the economy.”

Kwairanga further said “with a market capitalization exceeding N1 trillion, Transcorp Power’s entry into the public market represents a significant milestone, highlighting the increasing confidence and maturity of our capital market.

“It is a clear signal of the transformative journey our energy sector has embarked upon, thanks to the Electric Power Sector Reform Act and subsequent market liberalization.”

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.

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He added that the NGX is not just a platform for trading stocks; it is a catalyst for economic growth and development, and we recognize our responsibility in supporting the government’s privatization efforts, particularly within the energy sector.

“The listing of Transcorp Power exemplifies our belief that the NGX serves as a viable platform for the privatization of energy companies, driving efficiency, innovation, and sectoral growth,” he said.