Chief Executive Officer of the Transnational Corporation of Nigeria (Transcorp), Owen Omogiafo, last week unveiled her strategic agenda for the group, prioritizing the safeguard of shareholder interests, which she expects will ultimately ensure improved dividend payout, going forward.
Addressing shareholders at the virtual annual general meeting, Mrs. Omogiafo, who was recently appointed as the Group CEO, supported by a team of subsidiary CEOs, assured that the new management team is dedicated to delivering and exceeding the strategic objectives of the company.
In line with its founding vision and expressed in the corporate purpose of ‘Improving Lives, Transforming Nigeria,’ she said Transcorp is set to further deepen its play in the power sector for example with the planned completion of the ongoing acquisition of Afam Genco, this year.
The acquisition of the power plant located in Nigeria’s gas-rich Niger Delta region, she assured, will increase the group’s “generation capacity, revenue, and profitability.
“Our drive to diversify our energy mix will also continue, with a focus on renewable energy and off-grid solutions,” continuing to monitor developments in the oil and gas space.
The group, she added, will continue “making the best decisions in the interest of the company and its shareholders regarding the development of our oil and gas asset, OPL 281.”
In the hospitality segment of its business, the GCEO also spoke of plans to “deepen and expand our market share by deploying an asset-light strategy, leveraging best in class technology and continuously drive the highest service standards.”
Working with the MD/CEO of Transcorp Hotels Plc, Dupe Olusola, and the MD/CEO, Transcorp Power Ltd, Chris Ezeafulukwe, and all its highly committed staff and partners, she assured further that the group is well-positioned to continue delivering great value for shareholders.
Addressing the shareholders, the chairman, Tony Elumelu, commended the efforts of the government in combating the scourge of COVID-19 and reiterated the importance of synergy between the private sector and government, in stemming the spread of the global pandemic.
“I’ve often said that our commitment to improving lives and transforming Nigeria is a lifelong one. Those words are truer today than ever, as we partner with State and Federal authorities to stem the tide of the COVID-19 pandemic, while our businesses seek to cushion its impact for Nigerians in their course of operation.”
The meeting was the first full virtual AGM to be held by any listed company on the Nigerian Stock Exchange, with the chairman, Progressive Shareholders Association of Nigeria, Boniface Okezie, expressing excitement that the virtual AGM reflecting “the level of innovation and technology adoption in our company. This is truly exciting!”
Transcorp achieved a turnover of ₦76.35bn and profit before tax of N7.90bn in the year under review, with revenue from its power business, Transcorp Power Limited declined during the period. This, the group said, reflected the acute gas supply issues, transmission challenges, delay in debt payment by the government, and continuing structural impediments in the sector experienced within the period under. The company’s hospitality business, Transcorp Hotels Plc, on the other hand, grew its year-on-year revenue by 17%, and gross profit increased by 19%, compared to full-year 2018.
Mrs. Omogiafo concludes by highlighting that despite current challenges brought on by the global pandemic, the underlining strength of the Group’s businesses, the quality of its assets, its position as the leading Nigerian electricity producer, the proud owner of the Transcorp Hilton Hotel in Abuja, the hospitality gateway to Nigeria and its growing strength as an effective natural resources player, should give shareholders great confidence in the Group’s future.