As anticipated by Investdata News at the weekend, investors, on Monday reacted to full-year audited financials of the Transnational Corporation of Nigeria (Transcorp Plc) for the year ended December 31, 2018 submitted to the Nigerian Stock Exchange (NSE), as well as the board’s recommendation of three kobo dividend per share from earnings per share of 23 kobo.
At the close of Monday’s session, shares of Transcorp lost 9.94% of its opening value, closing at N1.54 each, as investors traded its 13.691m shares valued at N21.464m in 88 deals at N1.54 per share, which was the day’s low.
Monday’s decline in its share price was despite assurance by Valentine Ozigbo, President and Group Chief Executive of Transcorp, assured that the company is set to deliver increased revenue and profit for the good of all in the coming months, given ongoing negotiations by its cash cow- the Transcorp Power Limited, just as recent investments in Transcorp Hotels could begin to show in its coming numbers.
Ozigbo was speaking against weekend’s release of Transcorp’s financials, a result he said was achieved with the help of the power and hospitality segments, just as the 30% reduction in loss from Forex arising from financing activities year-on-year, helped by a relatively stable exchange rate in 2018.
Transcorp Power Ltd, for example, he continued, “has continued to explore opportunities created by the eligible customer framework initiated by the Federal Government. We are at an advanced stage of negotiations with a number of eligible customers, which will translate into transactions in the months ahead. Our hospitality subsidiary, Transcorp Hotels Plc, also maintained its history of profitability in 2018, displaying the impact of our recent US$100m upgrade at the Transcorp Hilton Abuja and the immense value placed on the hotel’s best-in-class hospitality services.”
Transcorp Plc reported total revenue for the period under review rose by N23.877bn or 29.74% from N80.284bn in the 2017 financial year to N104.162bn; the lion’s share of which was the N86.737bn income from electric energy and capacity sold by Transcorp Power Ltd, up from N66.441bn in 2017. Transcorp Hotels Plc followed with a total of N17.424bn, as against the N13.843bn earned in prior year; while the corporate centre, N8.899bn, compared to N5.121bn
Cost of sales rose to N55.91bn from N43.86bn, representing N12.049bn or 27.47%. Gross profit for the period therefore increased N11.828bn or 32.47% from N36.86bn to N55.91bn.
Other operating income at N997.196m suffered a decline by N362.443m or 26.65% from N1.359bn in 2017 to N997.196m; administrative expenses rose by N2.848bn or 24.24% from N11.751bn to N14.6bn; resulting in operating profit of N34.649bn, as against the previous N26.031bn, representing an N8.617bn or 33.1% increase.
Foreign exchange loss dropped N1.386bn or 30.44% from N4.554bn to N3.167bn; following which Profit Before Tax for the year soared by N10.096bn, or 82.05% from N12.309bn to N22.402bn; even as income tax expenses rose slightly from N1.775bn to N1.698bn; leaving net profit of N20.626bn, N10.019bn or 94.46% better than the N10.607bn reported in the corresponding period of 2017.