Transcorp Power: Full repayment of $215 mln loan marks milestone amidst stellar financial performance

By Temi Olowu

Transcorp Power’s Chief Finance Officer, Evans Okpogoro, announced on Monday that the company has successfully cleared its $215 million syndicated loans utilised for the acquisition earlier this year.

Okpogoro made this disclosure during an analyst and investor conference, highlighting the company’s swift action in repaying the outstanding balance and redirecting incoming funds towards capital expenditure.

“We are pleased to announce the full repayment of the USD loan in January 2024. The timely influx of funds allowed us to settle the remaining balance, enabling us to allocate foreign currency inflows towards our capital expenditure initiatives,” remarked Okpogoro during his presentation.

Additionally, Okpogoro unveiled Transcorp Power’s robust financial performance for the fiscal year 2023, reporting gross earnings of N142 billion, marking a remarkable 57.30% year-on-year growth.

This surge in revenue was attributed to increased energy delivery, capacity charges, and the company’s successful expansion into international markets, which contributed 18% to its revenue.

Furthermore, Transcorp Power demonstrated impressive operational efficiency, with its EBITDA margins strengthening from 44% in FY 2022 to 49% in FY 2023. The company’s profit before tax soared to N52.8 billion, reflecting an impressive 84.4% year-on-year growth.

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Okpogoro underscored the company’s commitment to asset optimisation and shareholder value, highlighting a reduction in the cost-to-income ratio from 68% in FY 2022 to 63% in FY 2023.

Transcorp Power’s return on equity of 52.3% and return on assets of 13.5% underscored the effective management’s ability to generate robust returns for investors.

“As we continue to enhance our performance, we remain dedicated to investing in our assets to drive sustained growth. Our total assets grew by 32.8% year-on-year, reaching N223 billion. Additionally, shareholder funds expanded by 27% year-on-year, reaching N58 billion,” Okpogoro stated.

In recognition of its outstanding performance, the board of directors recommended a dividend of N23.4 billion, subject to shareholder approval at the upcoming Annual General Meeting.

This dividend, representing a 77% payout ratio, aligns with the company’s dividend policy, ensuring consistent returns to shareholders.

Okpogoro concluded by affirming Transcorp Power’s commitment to growth and transparency, announcing the forthcoming release of the Q1 2024 interim accounts, which will further showcase the company’s position as Nigeria’s leading power generation entity.