Transcorp’s nine-month profit up by 135%

Transnational Corporation of Nigeria (Transcorp) reported a 135.1 per cent surge in net profit in the first nine months of the year, according to its latest financial report.

Revenue jumped from N128 billion to N297.7 billion, deriving its strength from a dramatic increase in the income generated from the energy sent out by its energy business, which alone accounted for 57.6 per cent of turnover.

Capacity charge, another income source from the energy subsidiary, contributed 26.1 per cent or N77.7 billion to the revenue pool, more than doubling its share of turnover for the same period of last year.

The conglomerate has investments in power, hospitality, oil & gas among others, and has subsidiaries including Transcorp Power, Trans Afam Power Limited, Transcorp Hotels (Ikoyi and Port Harcourt and Terago Commodities.

The power arm loomed large over all other subsidiaries in terms of contribution to revenue, bringing as much as 83.7 per cent or N249.2 billion to the table.

“As we approach year-end, we will focus on enhancing operational efficiency, investing in high-growth sectors, and delivering long-term value to our shareholders,” CEO and President Owen Omogiafo said in a separate document.

“We are investing for the future, particularly in the energy and hospitality sectors, delivering for our shareholders and our nation,” Ms Omogiafo went further to say.

This March, Transcorp carved out its main power unit, Transcorp Power, and listed it at a valuation of N1.8 trillion on the Nigerian Exchange, where its hospitality division, Transcorp Hotels, also enjoys independent listing.

Transcorp Power’s market valuation now stands at N2.7 trillion, with total assets climbing 62.3 per cent to N362.5 billion at the end of September, compared to last December.

The cost-to-income ratio of Transcorp stood at 32.8 per cent during the period, compared to 55.6 per cent ago.

Other income surged by 791.4 per cent to N13.7 billion, boosted by proceeds from the sales of an investment which Transcorp did not disclose in the report.

Strengthening profit, foreign exchange gain on financing activities stood at N3.5 billion in contrast to a loss of N6.1 billion a year ago.

Profit before tax increased by almost threefold, while after-tax profit grew from N32.3 billion to N75.9 billion.

Transcorp said in a separate statement that it has completed a share construction that has pared down its issued shares to 10.2 billion from 40.6 billion, with shareholders exchanging every 4 of their previous shares for 1.

The conglomerate said the move will help maximise long-term shareholders’ value, with the CEO expecting it to “bring the company’s capital structure to a manageable position.”