Transcorp Power Plc has revealed that 18% of its revenue comes from sales of electricity to some West African countries, which helps it generate the much-needed foreign exchange for its operations.
This was made known by the Chief Executive Officer of Transcorp Power, Mr Peter Ikenga, while presenting the fact behind the listing at the listing of 7.5 billion shares of the energy firm, worth N1.8 trillion at the Nigeria Exchange Limited (NGX) on Monday, March 4, 2024.
Transcorp Power Plc, a subsidiary of Transcorp Plc, has listed 7.5 billion shares at N240.00 per share by introduction on the Main Board of the Nigerian Exchange (NGX).
The leading power generation company’s listing boosts the overall NGX market capitalization by N1.8 trillion, just as its shares rose by 10% on the first trading day.
With the listing, Transcorp Group now has two subsidiaries listed on NGX, demonstrating its commitment to creating value for the Nigerian public and catalyzing economic growth.
At the presentation of the facts behind the listing, Ikenga highlighted the historical growth and performance of Transcorp Power as well as its strategy to stakeholders.
What Transcorp Power said
Speaking during the event, Ikenga said that the company had 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 the firm has 18 gas turbines 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.
- “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.
- ‘’We are also a proud member of the West Africa Power Pool (WAPP). We were inducted into the West Africa Power Pool in 2018, and what that did was that it opened the opportunity for us to do cross border electricity trade as well. Today 18% of our income comes from sales of power across the border and also attract much needed forex to help finance and boost our operations.’’
Ikenga explained that Transcorp Power operates the Ughelli Power Plant in Delta State, with an installed capacity of 972MW.
He noted that 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% increase) within four years of acquisition, surpassing the 5-year target of 670MW set by the Bureau of Public Enterprises.
Also, the 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.
What NGX said
The Group Chairman, Nigerian Exchange Group, Alhaji Dr. Umaru Kwairanga commended the listing of 7.5 billion ordinary shares of Transcorp Power on the Main Board of NGX, saying the listing was 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, underscored the pivotal role NGX plays in shaping Nigeria’s economic landscape.
He added that 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 NGX serves as a viable platform for the privatization of energy companies, driving efficiency, innovation, and sectoral growth,” he said.
