- Transcorp Rebounds With N12.3b Profit
Transnational Corporation of Nigeria (Transcorp) Plc witnessed considerable growth in turnover and profitability last year, pulling back from a pre-tax loss of N5.93 billion in 2016 to a pre-tax profit of N12.31 billion in 2017.
Key extracts of the audited report and accounts of Transcorp for the year ended December 31, 2017 released at the weekend showed that turnover rose by 35 per cent from N59.42 billion in 2016 to N80.28 billion in 2017. Gross profit increased by 21 per cent to N36.42 billion in 2017 compared with N30.17 billion in 2016. Operating profit increased by 25 per cent from N20.72 billion in 2016 to N26.03 billion in 2017.
Foreign exchange loss reduced to N4.55 billion in 2017 as against N18.7 billion in 2016 while net finance cost also improved from N26.64 billion to N13.73 billion. The company made provisions for N1.7 billion taxes in 2017 compared with tax credit of N4.80 billion received in 2016. With these, it reversed from a loss before tax of N5.93 billion in 2016 to profit before tax of N12.3 billion in 2017. After, taxes, net profit stood at N10.61 billion in 2017 as against net loss of N1.13 billion in 2016.
The balance sheet position of the conglomerate also improved in 2017 as total assets rose by 23 per cent to N285.52 billion in 2017 as against N232.16 billion in 2016. Shareholders’ funds rose by 11 per cent from N86.45 billion in 2016 to N95.71 billion in 2017.
Transcorp Chief Executive Officer, Mr. Adim Jibunoh said the profit was largely as a result of increase in power generation by Transcorp Power Limited due to improved gas supply and increased generation capacity.
According to him, capacity increased from 505 megawatts to 701 megawatts during the year as capacity increase was achieved through carefully planned maintenance programme for power generation assets and tactical engagement with stakeholders.
He added that the group’s hospitality business remained resilient, posting stronger year-on-year performance as it continued to maintain market leadership with occupancy levels that were way ahead of competition.
He pointed out that the group’s second hotel, Transcorp Hotel, Calabar continued its strong performance, achieving profitability for two consecutive years.
“We are confident of improved fundamentals going forward, as we increase our available generation capacity to above 800 megawatts by year-end taking advantage of improving gas situation. We expect to benefit from the upside of the new improved infrastructure upon completion of our upgrade project in Transcorp Hilton Abuja. The upgrade project is currently on track,” Jibunoh said.
Transcorp’s group strategic investments include power, hospitality, agribusiness and oil and gas sectors.
The group’s notable businesses are Transcorp Hilton Hotel, Abuja; Transcorp Hotels, Calabar; Transcorp Power Plc, Teragro Commodities Limitedand Transcorp Energy Limited.