Transcorp Power, which debuted on the Nigerian Exchange Group (NGX) on March 4, 2024, will distribute N34.7 billion in dividends. This total includes N24.5 billion as a final dividend for the 2023 fiscal year and N11.25 billion as an interim dividend for the first half of 2024.
For the first half of 2024, Transcorp Power Plc declares an interim dividend of N1.50 per share. This results in a payout of N11.25 billion across its 7.5 billion shares, each priced at 50 kobo.
Dividend Distribution Details
According to an NGX notice, the company will distribute dividends to shareholders listed in the register as of August 6, 2024.
Dividend Payout Ratios
With a net profit of N36.8 billion for the first half of 2024, the N11.25 billion interim dividend translates to a payout ratio of 30.6%. Combining the final dividend of N24.5 billion for FY 2023 and a net profit of N30.23 billion, Transcorp Power will distribute 51.8% of its declared net profit as dividends. The half-year profit for 2024 is 22% higher than the previous year’s N30.23 billion. The interim dividend currently yields 0.4%, a relatively modest figure given the share size.
No Public Offering Yet
The company listed on the NGX by introduction, with 14 entities holding its entire share capital. Seven entities control 98.46% of the shares, while the remaining 1.52% is held by seven other entities. Transnational Corporation Plc is the largest shareholder with 51.57%. Since listing at N264 per share, the stock price has risen by 41.6% to N373.90, giving the company a market cap of N2.8 trillion.
With only 1.52% of shares in free float, major shareholders will benefit significantly from the dividend distribution. Transnational Corporation Plc will receive about N17.9 billion. RichPoint Limited will get approximately N11.55 billion, and WoodRock Energy Resources will obtain around N2.59 billion.
Comparison with Competitors
Geregu Power Plc, a key competitor listed on the NGX in 2022, also pays regular dividends. Geregu Power issued a final dividend of N8 per share for FY 2022 and FY 2023, totaling N20 billion for FY 2023—18% less than Transcorp Power’s N24.5 billion. Despite this, Geregu Power achieved a higher dividend payout ratio of 125%, compared to Transcorp Power’s 78%. Geregu Power does not pay interim dividends.
Source:Nairametrics
