Buoyed by the recent return to profit after years of losses, Adim Jibunoh, new chief executive of Transnational Corporation of Nigeria Plc (Transcorp), says the half-year performance is only the beginning of good things to come for the conglomerate with interest in power, oil and gas, hospitality and agriculture.
A statement by Transcorp Plc quoted Jibunoh as saying that the performance highlights a significant recovery from the financial year 2016, assuring that the group would finish the year strong, situation that would be confirmed in the figures for ongoing third-quarter, with the enhancement of available power generating capacity of Transcorp Power Ltd, the group’s honey-pot, by 16.12% from 620 to over 720 megawatts on the back of improved gas supply in the country. This is then expected to boost the group’s turnover and profit for the year, a situation that may see it pay its first ever full-year dividend to investors that have patiently hoped for a turnaround.
According to the CEO, “our results show continued growth and a substantial step-up in profitability despite the volatile economic environment. It was achieved largely through increased power output following improved gas supply.
“Our power plant, Ughelli Transcorp Power Company, has consistently ranked as the number one power producer, contributing an average of between 13% -15% of total power exported to the national grid during the second Quarter of 2017,” Jibunoh said.
The increased revenue and profit is not expected to be entirely one-sided, he continued, as “improvements in general economic activity in Abuja and return to operations of the newly upgraded rooms at the Transcorp Hilton Hotels Abuja will boost occupancy and top line performance for Transcorp Hotels in the secnd half of 2017.”
These changes, he continued, “are keeping us responsive to fast changing consumer trends and accelerating our drive to a stronger financial performance in the second half of the year. We see this as a proven way of delivering long-term shareholder value.”
Transcorp Plc had in the half-year ended June 30, 2017, closed with a net profit of N4.2bn, translating to 134% growth, compared to the loss of N12.19bn recorded in the corresponding period in 2016, while total comprehensive income stood at N6.22bn, a 285% improvement from the loss of N11.5bn recorded in the corresponding period of 2016.
Shareholders’ fund for the period grew to N93bn, up from N86bn as at December 2016.
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