Lagos- Nigeria March 5, 2020 Transnational Corporation of Nigeria Plc (“Transcorp”) has announced the release of its audited financial statements for the year ended December 31, 2019.
The Group achieved turnover of ₦76.35bn, profit before tax of N7.90bn and profit after tax of ₦3.71bn.
Transcorp’s hospitality business, Transcorp Hotels Plc, grew year-on-year revenue by 17% and gross profit increased by 19%, compared to FY 2018. Revenue from its core power business, Transcorp Power Plc. declined during the period, reflecting the strong macro headwinds in Nigeria and specific issues relating to gas availability, transmission, revenue receipts and continuing structural impediments in the Nigerian power sector.
Commenting on the result, the President and Chief Executive Officer of Transcorp, Valentine Ozigbo, stated “Without question, 2019 has been challenging – however we have demonstrated our ability to grow revenues strongly in the hospitality sector, with the significant investment in the Transcorp Hilton upgrading bearing fruit. We remained committed to the Nigerian power sector, we are one of the largest producers in the country and are increasing our market share, through further acquisitions of attractive assets. This is a long term commitment, where we will create significant value over time, notwithstanding current operational challenges, including gas shortages, mandated reduction in generation from the National Control Center and importantly, revenue exposures from delayed payment of receivables in our power business.”
“We are proactively and sustainably addressing these issues. We are engaging directly with government to ensure that a uniform policy and regulatory regime exists, that delivers power to all Nigerians. We have implemented our Gas Supply and Aggregation Agreement, guaranteeing gas supply to our power plant in Ughelli; engaging with local communities in liaison with Nigerian Gas Company to prevent further vandalization of gas pipelines; completing the acquisition of Afam Power Plc and Afam Fast Power Limited to significantly increase our generation capacity in an area with nearby gas supply; expanding into alternative power generation and mini-grid opportunities” he further explained.
Mr. Ozigbo highlighted that “These steps, as well as the improvement in market payment for electricity generation, will facilitate our projected revenue growth in FY 2020 and in coming years. This is in addition to even more significant contributions from our hospitality business, which is expected to benefit from the introduction of new service offerings. The discharge of the hotel from the Bureau of Public Enterprise post-privatization monitoring in the outgoing year, validates our Group’s business turn around capabilities, operational excellence and market leading corporate governance.”
About Transcorp
Transnational Corporation of Nigeria Plc (Transcorp) is a publicly quoted conglomerate with a diversified shareholder base of about 300,000. Our portfolio comprises strategic investments in the power, hospitality, agribusiness and oil and gas sectors. Our notable businesses include Transcorp Hilton Abuja, Transcorp Hotels Calabar, Transcorp Power and Transcorp Energy.