Transcorp reports N111.4bn nine-month profit as power constraints hit revenue

Transnational Corporation Plc’s profit before tax (PBT) fell 10.5 percent to N111.4 billion in the nine months ended September 30, 2026, as transmission and gas supply constraints limited power output, despite improved profit margins and a stronger balance sheet.

Revenue declined 13.3 percent to N357.4 billion from N412.4 billion in the corresponding period of 2025, while profit after tax (PAT) fell 17.8 percent to N75.1 billion from N91.4 billion, according to the group’s unaudited financial results.

“Our performance reflects the strength of our diversified portfolio and our ability to sustain strong profitability and expand margins in a challenging operating environment,” Owen Omogiafo, president and group chief executive officer of Transcorp, said.

The company attributed the revenue decline largely to lower power evacuation at Transcorp Power Plc, as transmission and gas supply constraints restricted output during the period.

“We continue to work closely with stakeholders to address industry-wide constraints and improve electricity delivery, while leveraging our hospitality investments to strengthen Nigeria’s position as a destination for business, tourism and major events,” Omogiafo said.

Despite weaker earnings, the group’s profit-before-tax margin rose to 31.2 percent from 30.2 percent a year earlier, which management attributed to cost optimisation and operational efficiency.

“Our nine-month performance underscores the strength and resilience of the Group’s underlying businesses. Year-on-year revenue was impacted by power evacuation constraints arising from vandalisation of transmission and gas infrastructure,” Festus Izevbizua, group chief financial officer, said.

“Notwithstanding this, the Group expanded its profit-before-tax margin to 31.2 percent, from 30.2 percent in the prior period, a direct result of deliberate cost optimisation and operational efficiency across our businesses,” he added.

The group’s balance sheet strengthened over the period, with total assets rising 13 percent to N1.13 trillion from N1 trillion at the end of December 2025. Total equity increased 9.7 percent to N387.8 billion from N353.4 billion, while cash and cash equivalents more than doubled to N45.9 billion from N21.9 billion.

Across its businesses, Transcorp Power grew shareholders’ funds by 8.9 percent to N199.8 billion and increased cash and cash equivalents more than fourfold to N10.3 billion.

Transcorp Hotels Plc recorded a stronger earnings performance, with profit after tax rising 5 percent to N15.5 billion. Its net profit margin expanded to 22.3 percent, net finance costs fell 36 percent and total assets increased 29 percent to N206.8 billion.

The group said it remained focused on growth opportunities across its power, hospitality and energy businesses.

The results highlight the contrast between Transcorp’s improving margins and the infrastructure constraints limiting revenue growth in its power business.