—–Declares 300,000 Shareholders
July 31, 2018
By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s top tier conglomerate, Transnational Corporation of Nigeria Plc on Tuesday said it has concluded its first and second phase of its journey between 2001 to 2012 and seeks to expand into Africa by 2022, Adim Jibunoh, chief executive officer and president of the company said at an Investor Conference with journalists and analysts in Lagos Nigeria.
Jibunoh in an overview of the conglomerate’s performance in the review period said it started with the hospitality business Transcorp Hotels Plc and expanded into Power and Oil and Gas businesses.
The president of Transcorp said improving lives and transforming Nigeria has been its major drive and priority as an enterprise delivering excellence in service and products offered.
According to Jibunoh, institutional investors own only 4.43 percent of the conglomerate with a total number of 300,000 shareholders as at date.
A breakdown of Transcorp businesses according to him, shows that the conglomerate has 83 percent ownership of the hotel, 50.1 percent of the Power business and owns the Oil and Gas 100 percent.
Valentine Ozigbo, CEO Transcorp Hotels also disclosed the conglomerate seeks to expand its hospitality arm into Africa by 2022,and 70 percent to 80 percent occupancy rates in its business and has remained resilient and maintained market leadership.
Transcorp Hilton Abuja, December last year emerged the winner of two 2017 World Luxury Hotel Awards in the Best Luxury Contemporary Hotel (Nigeria) and Best Luxury City Hotel (West & Central Africa) categories.
The president of the conglomerate said Transcorp Power plant has also contributed about 15 percent to 17 percent of power in the country. “One of the things that has sustained the business has been stabilising forex and improved gas supply, we spend N3 billion on a monthly basis on gas expenses, we are projecting 800 mega Watts by 2018 end,” Jibunoh said.
The president of Transcorp says its Power company seeks to contribute 25 percent of the electric power generated in Nigeria by 2027 through its power business. It also said it will acquire interest in a Brownfield or Greenfield Power Plant in Africa.
Also, looking beyond 2027, Transcorp aims at completing its petrochemical plant to drive generation of $5.00 billion in revenue and stabilise production of its Oil Prospecting Licence (OPL) 281 to 10,000 barrel per day.
Mutiu Bakare chief finance officer (CFO) of Transcorp in a review of the half-year (H1) period June 30, 2018 said profit after tax (PAT) surged 161 percent to N10.87 billion from N4.16 billion posted a year and buoyed by increase in revenue, finance income and other income.
Profit before tax (PBT) also grew 164 percent to N11.94 billion from 4.53 billion declared the same period of 2017
Gross profit increased by 65 percent year-on-year, largely bolstered by continued growth specifically in revenue derived from rooms, energy sent out, capacity change and shop rentals.
” We are able to sustain growth momentum as seen in our financial result, this was made possible by marginal increase in occupancy rates in our hospitality business, as well as increase in power generation from our power business, due to improved gas supply and increased generation capacity,” Jibunoh said while commenting on the result.
