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Transnational Corporation Plc, the Nigerian conglomerate chaired by businessman Tony Elumelu, has shifted four of its eight turbines from Afam in Rivers State to Delta State to improve power generation after months of gas supply shortages.
The company disclosed the move during its third-quarter investor call on Tuesday. Owen Omogiafo, Transcorp’s president and group chief executive, said the decision was made to ensure steady output despite ongoing gas constraints in the eastern region.
“We have eight new turbines that are located in the Afam axis in Rivers State. Unfortunately, there were some gas challenges there,” Omogiafo said. “Instead of denying Nigerians more access to power, we took it upon ourselves, with the support of regulators and other strategic partners, including our board, to relocate four out of the eight turbines that are there and relocated them to Delta State.”
Transcorp boosts output after turbine relocation
According to her, the relocation has already started to yield results. “We are able to generate more power because we have more gas sources in that region, unlike the eastern axis. But things have also improved because as Heirs Energies has improved their gas, they’ve actually brought back to life a gas well which is now providing gas to the turbines that we have left in Afam as well as Ughelli,” she said.
Omogiafo added that both Transcorp Power and Transafam Power will continue to ramp up capacity through the fourth quarter. “For Transcorp Power, our target is 750 megawatts of available capacity by year-end, with an average generation of 528 megawatts. We’ve reached 424 megawatts as of the third quarter and are confident about closing strong,” she said.
“For Transafam, all four relocated turbines have been connected to the grid. One is already running, and the remaining three will go live soon. We’re targeting 378 megawatts of available capacity by year-end, with about 294 megawatts in active generation,” Omogiafo added.
Transcorp posts $62.6 million nine-month profit
Under Tony Elumelu, Transcorp has grown into one of Nigeria’s leading conglomerates, with holdings spanning power, hospitality, and energy. Through HH Capital and Heirs Holdings, Elumelu controls about 29.5 percent of the group. Its two power units, Transcorp Power Plc and Transafam Power, contribute over 20 percent of Nigeria’s total installed electricity capacity.
In its unaudited results for the nine months ended September 30, Transcorp posted a 20.5 percent rise in profit after tax to N91.4 billion ($62.6 million), up from N75.9 billion a year earlier. Revenue climbed to N413.4 billion ($283.6 million) from N297.7 billion ($204.2 million), driven by higher electricity output and a rebound in the hospitality segment.
Its total assets rose to N940.8 billion ($645 million) as of September, up from N751.6 billion at the end of last year, while retained earnings grew to N149.7 billion ($102.3 million).
