KEY POINTS
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Transcorp Power targets 750 megawatts of available capacity by year-end.
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Gas supply improvements are fueling higher Transcorp power output.
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Relocated turbines in Delta are already connected to the national grid.
Following months of gas supply issues, the Nigerian conglomerate Transnational Corporation Plc, led by Tony Elumelu, has moved four of its eight power turbines from Afam in Rivers State to Delta State in an effort to stabilize generation.
Transcorp power expansion drives steady growth
During Tuesday’s third-quarter investor call, the business made the announcement. The decision was motivated by the necessity to sustain steady output in face of persistent gas restrictions in the eastern corridor, according to Owen Omogiafo, president and group chief executive of Transcorp.
“In Rivers State, we have eight new turbines in the Afam axis,” Omogiafo stated. Regretfully, there were issues with gas there. We collaborated with our board, key partners, and regulators to relocate four of the turbines to Delta State so that Nigerians wouldn’t have to endure any more power outages.
Performance is already improving as a result of the change, she said. “The Delta region has more dependable gas sources, so we are producing more power now,” Omogiafo stated. “In order to increase supply, Heirs Energies has also resurrected a gas well that supplies the remaining turbines in Afam and Ughelli.”
Transcorp Power and Transafam Power are both on track to increase output through the end of the year, according to Omogiafo. By the end of the year, we want Transcorp Power to have 750 megawatts of usable capacity, with an average generation of 528 megawatts. We hit 424 megawatts as of the third quarter,” she stated. All four of the moved turbines at Transafam are linked to the grid. Three will shortly be brought online, with one currently up and running. By the end of the year, we hope to have 378 megawatts of usable capacity, of which 294 megawatts are in active generation.
Gas supply strengthens Transcorp power output
Transcorp has grown into one of Nigeria’s biggest corporations, encompassing energy, hospitality, and power, under Elumelu’s direction. About 29.5% of the business is owned by Elumelu through HH Capital and Heirs Holdings.
According to Billionaires Africa, more than 20% of Nigeria’s installed electrical capacity is accounted for by its two power companies, Transcorp Power Plc and Transafam Power.
Compared to N75.9 billion a year earlier, Transcorp’s unaudited figures for the nine months ending September 30 indicate a 20.5 percent increase in profit after tax to N91.4 billion ($62.6 million). Revenue increased from N297.7 billion ($204.2 million) to N413.4 billion ($283.6 million), driven by a recovery in the hospitality industry and increased electricity generation.
As of September, the company’s total assets had increased from N751.6 billion at the end of the previous year to N940.8 billion ($645 million). Profits retained increased to N149.7 billion, or $102.3 million.
