- Grosses N32.4b in Q1
Transnational Corporation of Nigeria (Transcorp) Plc yesterday said it has no plan to list its highly lucrative power business as the group continues to focus on sustainable growth of its businesses.
Its Group President and Chief Executive Officer, Owen Omogiafo, said the group has no plans to list its power business on the stock market.
Transcorp has been the most-sought-after stock at the stock market in recent period after Lagos businessman and energy investor, Mr. Femi Otedola, bought 5.52 per cent equity stake in the group. Many analysts had hinted at possible energy deals, triggering a running scramble for the shares of the conglomerate.
Omogiafo said the group remains focus on the exploration of OPL 281 to realise its integrated gas-to-power strategy, redefine hospitality standards in Nigeria and beyond, and increase its daily average available and generated capacity in Nigeria’s power sector.
Transcorp is also launching a world-class event centre in Abuja to consolidate its hospitality business, even as it continues its expansion to major cities, including Lagos, where it is developing a 300-key five-star hotel.
Omogiafo spoke during an investors and analysts conference call yesterday where Transcorp’s full year 2022 and first quarter 2023 financial results and outlook were discussed.
The group recorded N32.4 billion gross earnings in the first quarter of this year as against N31 billion in corresponding period of 2022, despite facing economic and gas challenges, that affected the power business’s generation capacity.
Omogiafo highlighted Transcorp’s ESG initiatives and progress in reducing its carbon footprint, supporting local communities, and promoting diversity, equity, and inclusion while assuring stakeholders of continuing growth
“Transcorp is about sustainability. We will continue to execute our sustainability strategy of transforming our world to create positive environmental, social, and economic impact across our businesses and communities.
“We are optimistic, and we remain focused on our strategic objectives of fully optimising our existing assets to ensure we consistently and sustainably deliver value for our stakeholders,” Omogiafo said.
Group Chief Financial Officer, Transcorp Plc, Joseph Adegunwa, presented an overview of the group performance, highlighting key achievements across its portfolio.
Last year, Transcorp Group sustained its growth trajectory and ended the year with gross earnings of N134.7 billion, a 21 per cent increase from N111.2 billion recorded in 2021. This growth was largely driven by the power and hospitality businesses.
Gross profit grew by 21 per cent, closing at N66.4 billion in 2022, from N54.8 billion in 2021. Despite facing inflationary pressures and adverse economic factors, the Group was able to sustain a gross profit margin of 49 per cent. The group cost-to-income ratio reduced from 79 per cent in 2021 to 78 per cent in 2022, demonstrating the Group’s operating efficiencies.
Transcorp ended the year with a profit before tax of N30.3 billion, an increase from N28 billion in 2021. This performance resulted in an increase to the company’s asset base, shareholders’ funds, and consequently, a 150 per cent growth in dividend payment.
Although an exchange loss recognised on foreign-denominated liabilities impacted the Group’s profitability, Transcorp maintained its revenue growth in the first quarter of the year.