Transcorp Power Limited, owner of the 972 megawatts capacity power plant in Ugheli, Delta State, has announced revenue growth of N74.3bn in 2021 following the recent improvements in the financial performance of Nigeria’s power sector.
In the 2021 annual report and financial statement of Transcorp Group, the Group Chairman, Tony Elumelu, said the power firm’s revenue accounted for about 70 per cent of the total revenue of the group.
He said, “Transcorp Power Limited’s revenue improved by 14 per cent from N65.1bn to N74.3bn, accounting for around 70 per cent of the total group revenue. Profit Before Tax increased by 92 per cent, from N12bn to N23.1bn.
“This excellent return again validated our investment and commitment to this critical sector.”
Speaking further on the sound financials in the power sector as seen in the delivery of another plant, Elumelu said, “Our investment in Trans Afam Power Limited was also consolidated in the group’s financials in 2021, accounting for 15 per cent of revenue and 25 per cent of the group’s total assets as at December 2021.”
The Federal Government through its Nigeria Electricity Trading Company Plc, Nigerian Electricity Regulatory Commission, and the Power Sector Recovery Programme had recently stated that the financial performance of the power sector was improving.
The PSRP, for instance, stated on Wednesday that the shortfall in electricity tariff paid by consumers across the country to power distribution companies had dropped from N1.891tn to N247bn.
It had explained that the tariff shortfall was reduced through the implementation of the PSRP Financing Plan that was approved in November 2021 and that this had further enhanced the cash-flow in the power sector.
The PSRP described the plan as “a credible financing plan for the PSRP programme that identifies how tariff shortfalls will be paid and promotes sustainable growth of the Nigerian electricity supply industry.”
On the reduction in tariff shortfall, it said, “Tariff shortfall payment has been cut-down from a historical accumulation of N1,891bn (N1.891tn) to N247Bn in 2021, and is on course for elimination by December 2022.”
Meanwhile, Elumelu stated in Transcorp’s annual report that the gross earnings of the group increased to N111.2bn in 2021 from N75.3bn in 2020.
He said Profit Before Tax for the group increased to N28bn in 2021 from N1.6bn in 2020.
On Profit After Tax for the group, the Transcorp chairman said it increased to N23.8bn in 2021 from N3.8bn in 2020.