Transcorp Power Plc has reported a profit after tax of ₦29.70 billion for the first quarter ended March 31, 2026, marking a decline from ₦32.64 billion in the same period of 2025, as revenue and operational performance slowed amid rising administrative costs and shifting financial dynamics. The company’s unaudited financial results reveal a 10.3 percent drop in revenue to ₦94.59 billion, down from ₦105.44 billion in Q1 2025, reflecting challenges in maintaining top-line growth. Despite a reduction in the cost of sales to ₦44.66 billion from ₦50.41 billion, gross profit fell to ₦49.93 billion, compared to ₦55.03 billion in the prior year, indicating pressure on margins.
Operating profit also declined to ₦36.53 billion from ₦44.54 billion, primarily due to a surge in administrative expenses to ₦11.49 billion, up from ₦7.45 billion. Although impairment losses decreased to ₦2.23 billion from ₦3.03 billion, this was not enough to offset the impact of higher operating costs. Finance income dropped sharply to ₦800.47 million from ₦1.74 billion, while finance costs turned into a charge of ₦2.46 billion, compared to a credit of ₦2.76 billion in the previous quarter, further squeezing earnings.
Profit before tax fell to ₦39.59 billion from ₦43.28 billion, while income tax expense decreased slightly to ₦9.90 billion from ₦10.65 billion. As a result, profit after tax settled at ₦29.70 billion. Earnings per share weakened to ₦3.96 from ₦4.35, reflecting the overall decline in net earnings. However, total comprehensive income improved to ₦31.56 billion from ₦32.64 billion, supported by a fair value gain of ₦1.86 billion on equity investments.
On the balance sheet, total assets rose to ₦613.42 billion as of March 31, 2026, up from ₦563.48 billion at the end of December 2025. This growth was mainly driven by an increase in trade and other receivables, which climbed to ₦508.69 billion from ₦468.39 billion. Cash and cash equivalents also improved significantly to ₦10.40 billion from ₦2.22 billion, signaling stronger liquidity. Total equity expanded to ₦214.96 billion from ₦183.40 billion, with retained earnings rising to ₦162.10 billion from ₦132.41 billion.
Nonetheless, total liabilities increased to ₦398.46 billion from ₦380.08 billion, driven by higher borrowings and trade payables. Non-current borrowings surged to ₦35.12 billion from ₦24.55 billion, while current liabilities remained high at ₦359.87 billion. The company’s financial performance thus presents a mixed picture, with balance sheet growth and improved liquidity offset by declining revenue and rising costs. Going forward, Transcorp Power’s ability to stabilize revenue, control expenses, and optimize its financing structure will be crucial in sustaining profitability in a challenging market environment.
Leave a Comment