Transcorp Power Posts ₦38.5 Billion Profit as Margins Improve, Finance Costs Drop 79%

Transcorp Power Plc recorded a profit after tax of ₦38.495 billion for the six months ended June 30, 2026, amid improved operating efficiency and a substantial reduction in finance costs.

The power-generating company generated ₦181.966 billion in revenue during the period, compared with ₦205.808 billion recorded in the first half of 2025.

Cost of sales declined by 12.5 percent to ₦112.147 billion from ₦128.185 billion, outpacing the 11.6 percent moderation in revenue and strengthening the company’s direct-cost efficiency.

Gross profit stood at ₦69.819 billion, while gross profit margin improved to 38.4 percent from 37.7 percent in the corresponding period of 2025.

The margin expansion suggests that Transcorp Power retained a larger proportion of revenue after covering generation and other direct operating costs.

Operating Margin Strengthens

Transcorp Power recorded ₦319.6 million in other operating income and a ₦2.223 billion positive impairment adjustment on financial assets. This compared with a ₦3.798 billion impairment loss in the first half of 2025.

Administrative expenses increased to ₦16.708 billion from ₦14.751 billion, indicating higher operating and corporate costs.

Operating profit remained strong at ₦55.653 billion, compared with ₦59.074 billion in the previous year.

Despite the moderation, the company’s operating profit margin improved to 30.6 percent from 28.7 percent, highlighting better underlying efficiency.

Finance Costs Decline Sharply

Finance costs dropped by 78.7 percent to ₦1.365 billion from ₦6.414 billion, significantly reducing the pressure of borrowing expenses on earnings.

Finance income stood at ₦1.338 billion, compared with ₦3.450 billion in the corresponding period.

Profit before tax amounted to ₦54.993 billion, representing a pretax margin of 30.2 percent, up from 28.5 percent in the first half of 2025.

The company incurred an income tax expense of ₦16.498 billion, compared with ₦14.682 billion a year earlier. The higher tax charge brought profit after tax to ₦38.495 billion, against ₦44.045 billion in 2025.

Basic and diluted earnings per share stood at ₦5.13, compared with ₦5.87 in the preceding period.

Total comprehensive income amounted to ₦35.942 billion after Transcorp Power recognised a ₦2.554 billion fair-value loss on equity investments measured through other comprehensive income.

Overall, the first-half result showed that Transcorp Power remained strongly profitable despite lower revenue. Improved gross and operating margins, alongside the substantial reduction in finance costs, strengthened the company’s underlying financial position during the period.