By Peter OBIORA InvestAdvocate
New York (INVESTADVOCATE)-Nigeria’s leading conglomerate, Transnational Corporation of Nigeria Plc said on Friday that its half-year 2016 earnings will be negatively affected following impact unrealised foreign exchange loss and naira devaluation on its power subsidiary, Transcorp Power Limited.
”The foreign exchange loss of N14 billion was due to exposure of the Group to USD obligation following the devaluation of the Naira from A N197/$ 1 to N282.5/$ I,” Transcorp said.
The conglomerate said the generating capacity of its power unit declined significantly during the quarter as a result of the deteriorating gas supply situation since February, 2016 where its daily capacity has gone down from 600MW to 280MW and sometime at less than 100MW.
“The receivables from the Nigeria Bulk Electricity Trading Plc (NBET] stand at over N28 billion,” Transcorp added.
Despite these, the nation’s top conglomerate said its hospitality business remains resilient and posting stronger year-on-year performance. “We remain confident of a strong and positive outlook for the Group despite these short term challenges. Management option for conversion of foreign currency loan hos been limited as a result of illiquidity of the foreign exchange market.
