Transcorp Delivers 39% H1 2023 Profit, On Sustained Growth In Energy Revenue

Transnational Corporation Plc, Nigeria’s leading conglomerate, last week presented its unaudited financial results for the first half ended June 30, 2023 with the Nigerian Exchange (NGX), in what the management described as a commendable growth across all its major indices, perhaps judging by the number of companies thrown into loss by the recent devaluation and removal of subsidy on petrol by the Bola Tinubu-led Federal Government.
Transcorp Group achieved a revenue of N82.123bn within the period, compared to N62.9bn in the corresponding period of 2022, marking a substantial 31% growth year-on-year.
Operating income also grew by 46% to close at N29.9bn as of June 2023, compared to N20.5bn in June 2022, signifying a 31% rise, while operating expenses jumped 40% to N15.9bn from N11.3bn.
Profit before tax rose to N18.5bn, from N13.4bn in H1 2022, after interest Cost fell by 9% to N6.6bn in June 2023 from N6.1bn.
A breakdown of the scorecard showed that the group’s power business maintained its leadership across all measurement parameters, contributing N63.14bn, representing 76.88% of total revenue, compared to N47.904bn, and N16.87bn or 91% of PBT, up from N12.104bn; followed from afar once more by hospitality, which pooled N18.983bn revenue from N14.984bn, and N3.52bn profit, as against N2.441bn; while the oil and gas, as well as the agro-allied segments continued to record nil activities.
A further breakdown of the numbers showed that Energy sent out and capacity charge during the period (power segment) amounted to N42.052bn and N22.078bn, up from N15.302bn and N9.046bn respectively; while rooms contributed N12.54bn, recording a significant growth from N4.509bn in the previous half-year; with food and beverages rising from N2.175bn to N5.253bn.

Total Assets for the period rose to N495.3bn, representing a 12% increase over the N442.7bn recorded at the end of June 2022, due to the increase in Debt and equity securities (+61%) and Trade and Other Receivables (+40%) which cushioned the effect of the decline in Inventories (+68%).
Shareholders’ funds remained very strong at N176.3 billion up from N154.8 billion recorded in the same period in 2022, further reinforcing the company’s commitment to delivering long-term value to its shareholders.
Commenting on the result, Transcorp’s President/Group Chief Executive Officer, Dr. (Mrs.) Owen Omogiafo, said the Group continues to sustain growth and improvement, showing resilience despite, a challenging operating environment, characterised by foreign exchange volatility, gas supply constraints, and rising inflation, amongst others.
The group’s performance for the first-half of the year, she assured, affirms “our dedication to driving innovation and seizing opportunities for sustainable growth, positioning Transcorp as a trailblazer in the Nigerian business realm.
“In spite, of the challenging environment, our power businesses (Transcorp Power Limited & Transafam Power Limited) have sustained revenue growth increase by 32% and 30% respectively while our hospitality continues to outperform across all indices.
“We remain focused on efficiency, cost leadership, and meeting market demand to consistently deliver profitability and value to all our shareholders,” Omogiafo stressed.