Transnational Corporation of Nigeria Plc, Nigeria’s foremost investment conglomerate has announced its financial results for the year ended December 31, 2017, showing improved revenue and return to profitability.
The company recorded revenue of N80.28 billion in 2017, up 35 per cent above the N59.42 billion in 2016. Foreign exchange loss dropped from N18.70 billion in 2016 to N4.55 billion, while net finance cost declined from N26.64 billion to N13. 73billion in 2017.
Consequently, profit before tax grew N12.31 billion compared to a loss before tax of N5.93 billion in 2016, while profit after tax was N10.61 billion in 2017, as against a loss after tax of N1.13 billion in 2016.
Shareholders’ fund rose by 11p per cent from N86.45 billion in 2016 to N95.71 billion in 2017, just as total assets improved by 23 per cent from N232.16 billion in 2016 to N285.52 billion in 2017.
Commenting on the results, the Chief Executive Officer of Transcorp, Mr. Adim Jibunoh said the profit reported in the year was largely a result of increase in power generation by Transcorp Power Limited due to improved gas supply and increased generation capacity.
According to him, available capacity increased from 505MW to 701MW during the year, noting that capacity increase was achieved through carefully planned maintenance programme for our power generation assets and tactical engagement with stakeholders.
Jibunoh said: “Also, our hospitality business remains resilient, posting stronger year-on-year performance. Specifically, we continue to maintain market leadership with occupancy levels that are way ahead of competition. In addition, our second Hotel, Transcorp Hotel Calabar continues on 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 800MW by year-end taking advantage of improving gas situation.
We equally 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.”
Transcorp had last year said the federal government’s guarantee of N700 billion to the Nigerian Bulk Electricity Trader(NBET), through the Central Bank of Nigeria (CBN), would help ease liquidity challenges in the power sector and incentivise further investment in power generation.
“With this laudable initiative, the risk of not getting paid for power supply has been mitigated and should thus improve our cash-flow and appetite for further investment, as against current situation where we have notable outstanding receivables for our supply. We are now encouraged to generate more, especially as gas supply improves. It is noteworthy that we have also recently invested in additional turbine, which should come onboard and add to our power generation in the second quarter of the year,” the company had said.