TranscorpTransnational Corp. of Nigeria Plc, one of the buyers of the country’s state-owned power companies, rallied to a seven-month high as the federal government handed over the plants.

The stock climbed for a third day, gaining 3.9 percent to N1.61 by 2:06 p.m. in Lagos,  the highest on an intraday basis since February 28. Investors traded 55 million shares, equal to 66 percent of the three-month daily average volume.

President Goodluck Jonathan handed control of 14 power companies to new owners including Siemens AG (SIE), Korea Electric Power Corp. (015760) and Transcorp. On August 22, Transcorp said it completed payment for the $300 million Ughelli power plant in the Niger delta region and plans to increase generation to at least 1,070 megawatts within five years from 300 megawatts.

“The investment in power is stimulating investors’ interest in Transcorp,” Raheem Mohammed, chief executive officer of Lagos-based Kundila Finance, said by phone. “In the future, its income will be one to behold.”

Transcorp’s profit for the full year through December fell to 2.5 billion naira ($15.5 million) from 5.9 billion naira a year earlier, it said on May 21. Revenue was 13.2 billion naira, compared with 13.9 billion naira, Bloomberg reports.

Transcorp rallied 62 percent this year, compared with the 30 percent gain by the Nigerian Stock Exchange All-Share Index.


Information from Business Day was used in this report.