Transcorp Plc Nets N8.18bn Q3 Profit On 93.77% Drop In Fx Loss

• Begins Winding Up Of Inactive Refining, Telecoms, Trading Arms

Pix Caption: Transcorp Plc’s chairman, Tony Elumelu (middle), directing affairs during the annual general meeting on April 1, 2017.

The board of conglomerate- Transnational Corporation of Nigeria (Transcorp) Plc, with operations spanning the country’s hospitality, agro-allied, power, oil & gas sectors, on Friday gave investors more reasons to cheer and hope for juicier year-end dividend, when it presented its unaudited nine-month report showing a 35.38% growth in revenue, just as a 93.77% drop in foreign exchange loss on financing activities. These resulted in a strong return to profit for the period.
Meanwhile, the company announced winding up proceedings ongoing in its subsidiaries such as Transcorp Refining Company Limited, Transcorp Telecomms Limited, Transcorp Trading and Logistics Limited. “The subsidiaries to be wound up have no assets, liabilities, income or expenses as these subsidiaries were incorporated but no further activities were performed. Hence, there are no assets held for sale and no income or expenses from discontinued operations,” Transcorp Plc explained further.
The nine-month result showed that revenue for the period increased by N14.835bn to N56.765bn, up from N41.92bn. The group’s Transcorp Power (Ughelli Power Generation Company) remained the honey pot, contributing N46.968bn, as against N30.434bn in the corresponding period of 2016; followed by N9.787bn from the hospitality business segment, a drop from N11.47bn. Teragro, the agro-allied segment surprisingly did not record any revenue for the period, compared to N15.791m in 2016.
Cost of sales climbed from N22.081bn to N31.134bn; following which gross profit rose to N25.622bn from N19.839bn.
Administrative expenses rose to N9.395bn from N8.966bn; other income rose from N364.062m to N582.737m; other gains- net fell to N0.505m from N347m; bringing operating profit to N16.81bn, up from N11.583bn.
Finance income fell from N786.283m to N577.692m; finance cost jumped to N7.196bn from N6.702bn, down from N22.556bn in the preceding Q3, also mainly from the power business; just as foreign exchange loss on financing activities fell sharply from N18.45bn to N1.149bn; as net finance cost reduced from N24.366bn to N7.767bn.
Profit before tax stood at N8.185bn, compared to the N14.208bn loss, boosted by the N9.436bn from the power segment; tax dropped to N857m from N1.425bn; and net profit to N8.185bn from the N14.208bn loss, translating to Earnings Per Share of N8.06, as against the loss of N20.02 each.

Sign In

Register

Reset Password

Please enter your username or email address, you will receive a link to create a new password via email.