Transnational Corporation Plc, one of Nigeria’s most diversified listed groups, reported its steepest foreign-exchange windfall in six years as the naira’s sharp depreciation inflated the value of its dollar-linked earnings and receivables, helping it deliver a resilient half-year performance despite rising costs.
The Lagos-based conglomerate, whose operations span power generation, hospitality, and oil and gas exploration, booked N2.77 billion in FX gains in the first half of 2025, more than double the N1.07 billion posted in the same period a year earlier. The second quarter alone saw a fourfold surge to N3.4 billion from N864 million in Q2 2024, according to its unaudited financials.
The gains came against the backdrop of the naira losing over 70 percent of its value since mid-2023 following foreign-exchange reforms by the Central Bank of Nigeria (CBN).
While many corporates, particularly manufacturers and consumer-goods firms, still suffer losses on dollar-denominated debt, albeit mildly, Transcorp’s balance sheet benefited from a rare net-long FX position.
FX cushion
The company’s power subsidiary, Transcorp Power Plc, sells electricity to the Nigerian Bulk Electricity Trading Plc under contracts that are partly indexed to FX. That structure, alongside foreign-currency inflows from Transcorp Hotels, provided a buffer that turned currency turmoil into a gain.
“Transcorp’s exposure is unusual in that dollar revenues outweigh liabilities, so the naira’s fall delivers an uplift rather than a drag,” said a Lagos-based equity analyst. “It’s a case study in how sectoral positioning shapes winners and losers in Nigeria’s FX cycle.”
The FX cushion helped offset higher financing costs, which rose 27 percent year-on-year to N9.05 billion. Despite this, profit before tax climbed 21 percent to N85.7 billion, while net profit advanced to N65.2 billion from N52.8 billion a year earlier.
Revenue momentum
Group revenue jumped 60 percent year-on-year to N279.7 billion, underpinned by growth in both power and hospitality. The power unit contributed N183.5 billion from energy sales and N48.5 billion from capacity charges, while hospitality generated N47.6 billion, boosted by foreign clients and event hosting.
The segmental data shows the relative weight of Transcorp’s businesses: power accounts for more than 80 percent of group turnover, hospitality contributes about 17 percent, while the nascent energy subsidiary and agro-allied unit remain in startup or dormant phases.
Read also: Africa Prudential records 75% profit growth in H1
Asset expansion
Total assets swelled 21 percent to N907.3 billion at June 2025, from N751.6 billion at end-2024. Growth was concentrated in current assets, which jumped to N495.2 billion from N345.4 billion, reflecting higher trade receivables from NBET and a build-up of cash.
Cash and cash equivalents nearly tripled to N49.0 billion, aided by stronger operating cash inflows and a N56.7 billion deposit for shares that boosted financing cash flow.
Non-current assets also expanded, driven by plant and machinery investments in the power business, which lifted property, plant and equipment to N315.9 billion from N310.5 billion. Investments in financial assets doubled to N39.5 billion from N18.2 billion, reflecting portfolio expansion.
On the liabilities side, total obligations climbed to N621.7 billion from N479.9 billion, highlighting growing leverage. Borrowings rose 23 percent to N110.3 billion, split between N61.9 billion in long-term debt and N48.4 billion short-term facilities. Tax liabilities increased to N71.4 billion from N56.9 billion, underscoring a heavier fiscal burden.
Operating cash flow turns deficit
Operating cash flow swung to a deficit of N22.6 billion in H1 2025 from a positive N7.5 billion a year earlier, dragged by working capital pressures, including higher receivables from NBET. Investing activities consumed N4.6 billion, largely due to capital expenditure of N11 billion on power projects, partially offset by dividend income and interest received.
Financing flows were the bright spot, delivering N58.2 billion in net inflows, compared with N4.5 billion in H1 2024. This was driven by new deposits for shares, which strengthened the balance sheet and provided liquidity for expansion, though dividend payouts of N6.1 billion and higher interest payments moderated the net impact.
Risks persists despite gains
Despite the FX windfall, underlying risks persist. Rising finance costs, administrative expenses of N36 billion (up 70 percent year-on-year), and an impairment charge of N4.9 billion on receivables highlight pressure points. The heavy reliance on NBET as an off-taker remains a structural vulnerability, given the bulk trader’s history of delayed payments to power producers.
Transcorp’s strong liquidity position — reflected in higher cash reserves — offers some cushion, but its leverage and dependence on volatile FX gains underline the fragility of current momentum.
With a N907 billion asset base, diversified revenue streams, and continued investment in hospitality and power infrastructure, Transcorp has positioned itself as one of Nigeria’s most resilient conglomerates. The unusual FX tailwind in 2025 has strengthened its earnings profile at a time when many corporates remain weighed down by currency losses.
