Power Business Boosts Transcorp Q1 Profit By 242.27%

Power Business Boosts Transcorp Q1 Profit By 242.27%


Post Views: 632 The price of Transnational Corporation of Nigeria (Transcorp) notched 8% to lead Monday’s gainers’ table after the director presented ...

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The price of Transnational Corporation of Nigeria (Transcorp) notched 8% to lead Monday’s gainers’ table after the director presented its unaudited financials for the first quarter ended March 31, 2018, showing significant growth in top and bottom-lines, helped by its power business.
Revenue for the period rose by 66.82% to N26.302bn from N15.767bn, with the power business (Ughelli Power Generation Company) contributing the lion’s share of N22.485bn or 85.48%, from N12.779bn in 2017Q1 of the turnover; followed from afar by N3.816bn from the hospitality segment, as against prior first quarter’s N2.988bn.
Cost of sales jumped to N14.323bn, representing a N5.496bn or 62.26% rise over the N8.827bn; leading to gross profit of N11.979bn, up by N5.039bn or 72.6% from N6.94bn.
Administrative expenses increased to N3.572bn from N2.716bn; other income soared from N16.988m to N57.725m; while other net losses stood at N4.676m from a net gain of N20.045m. Operating profit rose to N8.459bn from N4.227bn, representing a 100.11% growth of N4.232bn.
Finance income stood at N212.161m from N217.229m; finance cost rose marginally from N2.394bn to N2.452bn; foreign exchange loss on financing activities dropped to N284.416m from N315.342m; leaving net finance cost of N2.524bn; from N2.492bn.
Profit before tax climbed 242.27% from N1.734bn in the first quarter of 2017 to N5.935bn; with the hospitality contributing N874.276m, far behind the N6.112bn from the power business; compared to N535.636m and N2.126bn respectively in 2017.
Tax expenses rose to N524.319m from N238.373m; while profit after tax soared by 261.63% from N1.498bn to N5.41bn; following which Earnings Per Share of 5.55 kobo, from 0.91 kobo.
The segment contribution to the financials show that despite the N4.855bn assets in the oil and gas and N293.437m in the agro-allied, both units did not contribute to the group’s profit and loss for the period under review.
In view of the significant role the power business was expected to play in the group, Tony Elumelu, Group chairman of Transcorp Plc, last September commissioned Transcorp Power’s Gas Turbine 15. He was accompanied by Senator Ifeanyi Okowa, Governor of Delta State and host, and Babatunde Fashola, Minister of Works, Power and Housing; as well as the management of Transcorp Plc.
Speaking at the World Economic Forum (WEF) in Davos in January, Elumelu noted the enormous strides and a number of milestones at Transcorp’s power business, which “is only the beginning.”
He assured of a long-term plan to “add far more to the national grid and improve the lives of far more Nigerians.”