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  • Transcorp Power and renewed market rally

    Transcorp Power and renewed market rally

    Transcorp Power Plc’s listing energises the stock market to a recovery in the aftermath of the selloffs occasioned by the recent jumpy increase in benchmark interest rate. In this report, Deputy Group Business Editor, Taofik Salako, examines the underlying dynamics behind the scramble for Nigeria’s leading power company

    The stock market is riding the momentum of the listing of Transcorp Power Plc to moderate the adverse effect of the unexpected high increase in the Monetary Policy Rate (MPR). In the aftershock of the 400 basis points increase in the MPR, the benchmark interest rate, to 22.75 per cent by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), the equities market had suffered a heavy capital flight. With the relatively risk-free return substantially higher, investors scurried to realign their portfolios in favour of fixed-income securities. 

    The benchmark index for the Nigerian equities market suffered its heaviest loss in recent period penultimate week, dropping by 3.27 per cent. This dragged the average year-to-date return down to 32.07 per cent. The All Share Index (ASI)- the value-based, common index that tracks share prices at the Nigerian Exchange (NGX), dropped below its psychological 100,000 index mark to 98,751.98 points. For every three deals after the MPR announcement, two were closed below the price on the table. With the order book substantially tilted towards sales, most analysts expected the downtrend to continue.

    Last Monday’s listing of Transcorp Power, a subsidiary of Transnational Corporation of Nigeria (Transcorp) Plc, has, however, changed the dynamics of the equities market. Transcorp Power listed by way of introduction 7.5 billion ordinary shares of 50 kobo each at N240 per share. It immediately got off to a rally, rising by the maximum daily allowable price change of 10 per cent throughout the trading week. The Transcorp Power’s rally also accentuated the scramble for its parent company, Transcorp.

    Market performance

    Official trading data released by the NGX at the weekend showed that Transcorp Power was the most-sought-after-stock during the week. It led the gainers with a gain of 46.38 per cent to close weekend at N351.30 per share. This implied a net capital gain of N835 billion in the first week of listing, from opening market value of N1.8 trillion to current market value of N2.635 trillion. Transcorp ranked fourth on the gainers’ list with net return of 19.05 per cent to close weekend at N17 per share, from N14.28 per share.

    While the portfolio realignment occasioned by the MPR hike continued to drive selloffs, the overall market position has returned to the positive. The ASI closed weekend with average return of 2.61 per cent, equivalent to net capital gain of N1.41 trillion during the week. With nearly three out of every four deals closed below the price on the table, the market recovery was largely driven by the scrambles for Transcorp Power and Transcorp’s shares. The ASI regained its 100,000 index mark to close at 101, 330.85 points while aggregate market value of all quoted equities jumped from N54.035 trillion to close weekend at N57.293 trillion. The recovery strengthened Nigeria’s leadership atop world’s returns table with the nation’s average year-to-date return, for equities, rising to 35.52 per cent. Nigeria’s return is about 10 basis points above 25.7 per cent return by Egypt, the second highest year-to-date return, according to Bloomberg data tracked at the weekend.

    The NGX report indicated that the momentum of activities at the equities market improved considerably. Total turnover rose to N2.157 billion shares worth N108.824 billion in 51,556 deals last week as against 1.882 billion shares valued at N34.149 billion traded in 48,464 deals two weeks ago.

    The trio of Transcorp, Transcorp Power and United Bank for Africa (UBA) Plc were the most active stocks. They accounted for 1.056 billion shares worth N78.770 billion in 12,167 deals, representing 48.97 per cent and 72.38 per cent of the total equity turnover volume and value respectively. The three companies have a common cause- Mr. Tony Elumelu.

    Elumelu factor

    Elumelu’s Heirs Holdings is the controlling majority shareholder in Transcorp and UBA. Transcorp holds majority equity stake of 51.6 per cent in Transcorp Power, where Elumelu’s Heirs Holdings also has substantial stake. Market analysts were unanimous that the remarkable rally that greeted Transcorp Power and its related companies was driven by two pricing forces- the business outlook and the Elumelu factor.

    Nigeria’s largest gas-fired power generating company, Transcorp Power, generates more than 10 per cent of the country’s power. The company plans to achieve annual revenue growth of more than N500 billion by 2031, with a target to power a quarter of the country’s households and industries. Transcorp Power is seen by the investing public as another example of Elumelu’s transformative touch. From the rubbles of an underperforming government-owned asset in 2012, Transcorp Power has emerged as one of the nation’s most efficient power companies. Founded on September 24, 2012, as Transcorp Ughelli Power Limited (TUPL), having emerged as the preferred bidder during the privatisation of the national electricity assets by the Federal Government, Transcorp Power is the owner of the 972MW installed capacity Ughelli Power Plant (UPP) at Ughelli, Delta State, (Ughelli Power Plant). In 2023, the company became the first power generation company to be discharged from post-privatisation monitoring by the National Council of Privatisation, having met and surpassed set targets. Subsequently, in December 2023, the company converted into a public limited liability company, following which its name was changed to Transcorp Power Plc.

    Elumelu, Group Chairman of Transcorp, said the subsequent listing of Transcorp Power was part of the group’s goals of creating values for all Nigerians.

    According to him, the milestone listing reflects Transcorp’s commitment to catalysing economic growth and prosperity. 

    “We invest in strategic sectors within the economy, transform, expand businesses, and consciously seek ways to share value.  Our track record is evident with Transcorp Hotels Plc and now Transcorp Power Plc.  We are focused on improving access to electricity for all, creating lasting value for our shareholders and contributing to our nation’s development,” Elumelu said.

    Managing Director, Transcorp Power, Mr. Peter Ikenga explained that Transcorp Power has 18 gas turbines of different capacities comprising 12 Hitachi H25 gas turbines of 23.8MW capacity each and six Frame 9E General Electric (GE) gas turbines of 105MW capacity each.

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    He outlined that Transcorp Power’s Plant has three major sections respectively referred to as Delta II, Delta III and Delta IV. Each ‘Delta’ has gas turbines (GTs) of different capacities.

    He noted that through effective maintenance and upgrading programmes, Transcorp Power has continued to ensure optimal performance of its turbines, irrespective of the section of the Plant in which they are located.

    “Through effective maintenance and upgrading programmes, Transcorp Power has continued to ensure optimal performance of its turbines and balance of plant. Whilst installed capacity has remained same in the past few years, Transcorp Power has been able to steadily improve on its capacity utilization rate. In 2023, the Company’s utilization rate stood at 78 per cent,” Ikenga said.

    Presenting the financial highlights, Chief Finance Officer, Transcorp Power, Evans Okpogoro said the company’s revenue has grown impressively over the past five years, driven by a surge in energy delivery and capacity charge.

    He said the company has sustained and grown its profit margins while exploring new growth opportunities in lucrative international markets.

    He pointed out that international customers contributed about 18 per cent of the company’s turnover in 2023.

    He outlined that the company’s turnover had grown from N55.94 billion in 2019 to about N142.12 billion in 2023, underlining the successive improvements in operations and expansions.

    Analysts’ views

    Chairman, Nigerian Exchange Group (NGX Group) Plc, Alhaji Umaru Kwairanga, said the listing of Transcorp Power was a milestone that highlighted the significant transformation of the company and the energy sector.

    According to him, the listing was a testament to the resilience, innovation, and excellence within the company and the Nigeria’s power sector.

    “With a market capitalization exceeding N1 trillion, Transcorp Power’s entry into the public market represents a significant milestone, highlighting the increasing confidence and maturity of our capital market. It is a clear signal of the transformative journey our energy sector has embarked upon, thanks to the Electric Power Sector Reform Act and subsequent market liberalization,” Kwairanga said.

    Acting Chief Executive Officer, Nigerian Exchange (NGX), Mr. Jude Chiemeka said the Exchange recognizes its responsibility in supporting the government’s privatisation efforts, particularly within the energy sector.

    “The listing of Transcorp Power exemplifies our belief that the NGX serves as a viable platform for the privatization of energy companies, driving efficiency, innovation, and sectoral growth,” Chiemeka said.

     Group Managing Director, Vetiva Capital Management Limited, Mr. Chuka Eseka, said the listing was a rare and significant opportunity for Nigerians to be part of Transcorp Power’s growth.

    Eseka said a listing like Transcorp Power “doesn’t happen very often”.

    “The listing of Transcorp Power’s shares by introduction on the NGX represents a significant milestone for Nigeria’s power sector as well as the capital markets.

    “The company’s listing further deepens the capital markets, particularly the electric power generation sub-sector. This listing strengthens the foundation that the company has laid in the last decade since privatization, and offers the investing public an avenue to be part of the company’s growth story,” Eseka said.

    Managing Director, Arthur Steven Asset Management, Mr. Olatunde Amolegbe, said the listing by way of introduction was a perfect fit for a company like Transcorp Power as such listing provides a win for all.

    “Listing by introduction provides a corporate looking for public quotation without needing to raise capital an avenue to do so without needing to issue or sell new shares to the public. It also provides existing shareholders looking to sell their shares a platform for better price discovery and a larger pool of interested investors to sell to.

    “Of course, listing now means the company will be more transparent with its information and will have to endure more scrutiny. This actually works to the advantage of the power companies because the investing public will become more familiar with their operations and able to assess their strengths and weaknesses which ultimately makes it easier for them to raise much needed capital to expand and improve their operations. There is also the wealth redistribution angle of hitherto government-owned enterprise that is now own by the citizens themselves directly,” Amolegbe, a former president of Chartered Institute of Stockbrokers (CIS) said.

    Managing Director, HighCap Securities, Mr. David Adonri said listing brings a lot of benefits to companies, especially giving them visibility and access to mobilisation of long term capital that is low in cost and adequate in volume.

    “It is very apparent that dearth of long term capital is the major challenge preventing Nigeria’s electric power industry from expanding capacity required to close the huge supply gap. With recent changes to the electric power industry’s legal framework, access to capital by industry participants can serve as tonic that will energize the industry into production. This justifies the listing on the stock exchange.

    “The recent listing of Transcorp Power is quite significant because of its size in the industry and the opportunity it offers the investing public to share in the wealth it is creating. The future prospects of Transcorp Power and the intrinsic value it possesses have attracted a lot of investors’ interest in it such that demand for it continues to drive price appreciation. The momentum it has generated since listing has become the major factor propelling the equities market in recent times,” Adonri, a senior active trader at the stock market, said.

    Investors’ confidence

    Shareholders were unanimous at the weekend that Elumelu factor was a major driving force for the newly listed energy company. According to them, Elumelu won’t ditch the investors.

    President, Ibadan Zone Shareholders Association, Mr. Eric Akinduro, said Elumelu was “an entrepreneur with a difference”.

    “His ability to attract, evaluate, and forge strong working relationships with investors often means success to us. What he did for us as investors of UBA during unbundling of the company where he gave us three companies-United Capital, Africa Prudential and Afriland Properties for free is a sign of his belief in good  corporate governance and  love for investors. Today, those companies have grown into profitable investments to us in terms of appreciation and dividends payment.

    “One of his qualities is that he is always clear to investors about what the company will and will not do. Today, look at all the companies he listed, he has made many investors that believed in his ability richer than ever, particularly in the last two years,” Akinduro, who represents the largest and most active shareholders’ zones, said.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar said investors were scrambling for the new power company’s shares because of their experience with previous companies under the Elumelu Group.

    “You can see clearly a trajectory that speaks to investors’ experience. Investors are happy with him as well as the future of the company. His ability to spread wealth based on previous experience in his companies is one driving factor behind what you have seen,” Umar said.

    National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude said with seven listed entities under his control, Elumelu has demonstrated his belief in spreading wealth and empowering the generality of people.

    “Elumelu is a believer of a greater Nigeria and a pan-Africanist. A man who believes in creating wealth for all, a builder of leaders, a motivator, he is a real son of Africa. He was the only one who unbundled and unlocked his bank, UBA, to create values for shareholders and jobs for people while others looked at the other side. He has started unbundling and unlocking Transcorp again, he is a master strategist in ‘acquired, built and unlocked value for the benefit of all’, he is not selfish in his business strategy rather a good soul who believes others should benefit from his talent and skills,” Igbrude said.

    National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare, said the listing of the power company has been a reaffirmation of trust and confidence in Elumelu and his belief in the stock market as an engine of growth.

    “The listing bears testimony to his level of integrity, trust and collectivity. His level of transparency, accountability and commitment to return on investment have continued to serve as morale booster to investors in their interactions with him. We hope others will emulate him,” Bakare said.

    With analysts unanimous that Transcorp Power’s pricing trend is biased to the upside, the newly listed power company may continue to hold back the bears, providing the much-needed breather for the market to absorb the shocks from the interest rate hike.

  • Transcorp Power’s listing opportunity to all Nigerians, says Vetiva

    The listing of Transcorp Power Plc on the Nigerian Exchange (NGX) provides opportunity for the general investing public to be part of the exciting growth trajectory of the power generation company.

    Group Managing Director, Vetiva Capital Management Limited, Mr. Chuka Eseka, said the listing was a rare and significant opportunity for Nigerians to be part of Transcorp Power’s growth.

    Transcorp Power had on Monday listed by way of introduction 7.5 billion ordinary shares of 50 kobo each at N240 per share. Its share price has since been recording the maximum daily allowable gain of 10 per cent. It closed yesterday at N351.30 per share, after rising by 9.99 per cent.

    Read Also: Transcorp Power hits N2tr on listing rally

    Eseka said a listing like Transcorp Power “doesn’t happen very often”.

    “The listing of Transcorp Power’s shares by introduction on the NGX represents a significant milestone for Nigeria’s power sector as well as the capital markets.

    “The company’s listing further deepens the capital markets, particularly the electric power generation sub-sector. This listing strengthens the foundation that the company has laid in the last decade since privatization, and offers the investing public an avenue to be part of the company’s growth story,” Eseka said.

    He noted that Vetiva Advisory Services Limited, a subsidiary of Vetiva Capital Management Limited, was deeply honoured to have acted as Joint Financial Adviser on the landmark listing, which coincidentally happened to be the first listing on the NGX so far this year.

  • Stock market sustains rally on Transcorp Group’s gains

    • We’ll create enduring value for shareholders, nation, says Elumelu

    Nigerian equities sustained their rally yesterday as investors continued their scramble for the shares of Transnational Corporation (Transcorp) Plc and its newly listed subsidiary, Transcorp Power Plc.

    Benchmark indices at the Nigerian Exchange (NGX) indicated average gain of 0.35 per cent yesterday, equivalent to net capital gain of N193 billion.

    With nearly four decliners to every advancer, the positive overall market position was largely due to considerable rally in the shares of Transcorp and Transcorp Power. FBN Holdings also supported the market with a major recovery.

    The All Share Index (ASI)- the value-based common index that tracks all share prices at the NGX, rose by 342.57 points or 0.35 per cent to close at 99,190.46 points as against its opening index of 98,847.89 points.

    Aggregate market value of all quoted equities also rose from its opening value of N55.890 trillion to close at N56.083 trillion.

    Read Also: Transcorp Power hits N2tr on listing rally

    There were 10 gainers to 37 losers. Transcorp and Transcorp Power retained the lead on the activity chart, with the maximum daily allowable gain of 10 per cent each to close at N17.27 and N290.40 respectively.

    Nigeria’s largest gas-fired power generating company, Transcorp Power, was listed on Monday and got off to a major rally as investors scrambled for the shares of the company which generates more than 10 per cent of the country’s power. The scramble for shares pushed up Transcorp Power’s entry listing value of N1.8 trillion to N1.98 trillion by the end of first trading session.

    Transcorp Power listed by way of introduction 7.5 billion ordinary shares of 50 kobo each at N240 per share. Its share price however recorded the maximum daily allowable gain of 10 per cent on Monday to close at N264 per share, representing a net gain of N180 billion within immediate period of listing. A total of 40 million shares of Transcorp Power were traded at N10.56 billion at the first trading session.

    Riding on the back of subsidiary listing, Transcorp also rose by 9.94 per cent on Monday while both companies were the most active stocks- in terms of volume and value.

  • Transcorp Power hits N2tr on listing rally

    Transcorp Power hits N2tr on listing rally

    Nigeria’s largest gas-fired power generating company, Transcorp Power Plc, yesterday opened up its ownership to the investing public with the listing of its shares at the Nigerian Exchange (NGX).

    The listing of the company got off to a rally as investors scrambled for the shares of the company which generates more than 10 per cent of the country’s power.

    The scramble for shares pushed up Transcorp Power’s entry listing value of N1.8 trillion to N1.98 trillion.

    The firm listed by way of introduction, 7.5 billion ordinary shares of 50 kobo each at N240 per share.

    Its share price however recorded the maximum daily allowable gain of 10 per cent to close at N264 per share, representing a net gain of N180 billion within immediate period of listing.

    A total of 40 million shares of Transcorp Power were traded at N10.56 billion.

    Investors also showed stronger enthusiasm for Transcorp Power’s parent company, Transnational Corporation (Transcorp) Plc, which rose by 9.94 per cent.

    Both companies were the most active stocks – in terms of volume and value – at the stock market yesterday.

    Transcorp Power plans to achieve annual revenue growth of more than N500 billion by 2031, with a target to power a quarter of the country’s households and industries.

    At the listing at the NGX yesterday in Lagos, Transcorp Power Managing Director, Mr. Peter Ikenga, said the listing underscored the transformation that had seen the company transiting from a government-owned asset into a leading private-sector led company.

    He said that with the listing, Nigerians can further benefit from the company through ownership and sharing in its exciting future growth prospects.

    He said that company presents a unique opportunity in Nigeria’s power generation sub-sector, which is pivotal to economic growth.

    Ikenga explained that the company has 18 gas turbines of different capacities comprising 12 Hitachi H25 gas turbines of 23.8mw capacity each and six Frame 9E General Electric (GE) gas turbines of 105mw capacity each.

    He listed the three major sections of the plant  as Delta II, Delta III and Delta IV. Each ‘Delta’ has gas turbines (GTs) of different capacities.

    Ikenga noted that through effective maintenance and upgrading programmes, Transcorp Power has continued to ensure optimal performance of its turbines, irrespective of the section of the Plant in which they are located.

    He said: “Through effective maintenance and upgrading programmes, Transcorp Power has continued to ensure optimal performance of its turbines and balance of plant. Whilst installed capacity has remained same in the past few years, Transcorp Power has been able to steadily improve on its capacity utilization rate. In 2023, the Company’s utilisation rate stood at 78 per cent.”

    Presenting the financial highlights, the company’s Chief Finance Officer (CFO), Evans Okpogoro said the company’s revenue has grown impressively over the past five years, driven by a surge in energy delivery and capacity charge.

    He said the company has sustained and grown its profit margins while exploring new growth opportunities in lucrative international markets.

    Okpogoro pointed out that international customers contributed about 18 per cent of the company’s turnover in 2023.

    He outlined that the company’s turnover had grown from N55.94 billion in 2019 to about N142.12 billion in 2023, underlining the successive improvements in operations and expansions.

    Chairman of the Nigerian Exchange Group (NGX Group) Plc, Umaru Kwairanga, described the listing as a milestone that highlighted the significant transformation of Transcorp Power and the energy sector.

    According to him, the listing was a testament to the resilience, innovation, and excellence within the company and the Nigeria’s power sector.

    Kwairanga said: “With a market capitalization exceeding N1 trillion, Transcorp Power’s entry into the public market represents a significant milestone, highlighting the increasing confidence and maturity of our capital market. It is a clear signal of the transformative journey our energy sector has embarked upon, thanks to the Electric Power Sector Reform Act and subsequent market liberalisation.”

    Kwairanga restated NGX commitment to playing its pivotal role in driving economic growth and development in the nation.

    He said: “We as an Exchange are determined to ensure that all sectors of Nigeria’s economy are fully represented on NGX and that the transparency, sustainability, ethical values, and private sector dynamism that drives the exchange drives the economy.”

    Acting Chief Executive Officer, Nigerian Exchange (NGX), Mr. Jude Chiemeka added that the NGX is not just a platform for trading stocks; but a catalyst for economic growth and development.

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    He said the Exchange recognizes its responsibility in supporting the government’s privatisation efforts, particularly within the energy sector.

    “The listing of Transcorp Power exemplifies our belief that the NGX serves as a viable platform for the privatization of energy companies, driving efficiency, innovation, and sectoral growth,” Chiemeka said.

    Transcorp Power was founded on September 24, 2012, as Transcorp Ughelli Power Limited (TUPL), having emerged as the preferred bidder during the privatisation of the national electricity assets by the Federal Government. It is the owner of the 972mw installed capacity Ughelli Power Plant (UPP) at Ughelli, Delta State, (Ughelli Power Plant).

    In 2023, the company became the first power generation company to be discharged from post-privatisation monitoring by the National Council of Privatisation, having met and surpassed set targets.

    In December last year, the company converted into a public limited liability company, following which its name was changed to Transcorp Power Plc.

  • Transcorp Power appoints WAAP member to Executive Board

    Transcorp Power appoints WAAP member to Executive Board

    Transcorp Power Limited (TPL), one of the power subsidiaries of Nigeria’s leading conglomerate, Transnational Corporation Plc (TRANSCORP), has been appointed member of the Executive Board of the West African Power Pool (WAPP).

    The appointment was made at the 18th Session of the WAPP General Assembly, which held on November 10, in Nouakchott, Mauritania.

    TPL was admitted as a member of WAPP in 2019 and has since then been an active member of the body. The WAPP Executive Board is responsible for implementing the decisions of the WAPP General Assembly, the organisation’s highest decision body, composed of all the member utilities. The Executive Board, therefore, is the most empowered to ensure the realisation of WAPP mission and objectives.

    Read ALso: Transcorp Hotels records 62% profit in Q3

    Speaking on the appointment, Peter Ikenga, Managing Director/CEO of Transcorp Power Limited, expressed TPL’s committment to the appointment.

    “As a member of the WAPP Executive Board, Transcorp Power Limited is committed to our core purpose of improving lives and transforming Africa and to actively contribute to the realisation of WAPP’s mission and objectives. We believe that collaboration within the WAPP community is crucial for achieving sustainable progress in the power sector, and we are excited to play a key role in shaping the future of energy in the ECOWAS sub-region,” Ikenga said. 

    In May 2023, TPL became the first power company to receive its certificate of discharge from the National Council of Privatisation, reflecting the company’s sustained corporate transformation since 2013, when Transcorp acquired it under the Power Sector Transformation. The company, which recently celebrated its 10th year anniversary is a key player in the Nigerian and West African Power Sector.

  • Transcorp grows turnover by 33% in Q3

    Transcorp grows turnover by 33% in Q3

    Transnational Corporation of Nigeria (Transcorp Group) Plc, recorded 33 per cent growth in sales in the third quarter as the conglomerate continued to see growths across its businesses.

    Key extracts of the interim report and accounts for the period ended September 30, 2023, released at the Nigerian  Exchange (NGX) showed turnover of N128 billion in third quarter 2023, compared with N96.2 billion in third  quarter 2022,  representing an increase of 33 per cent. Operating income also grew by 36 per cent to N42.7 billion compared with N31.5 billion.

    The group’s total assets increased by eight per cent from N442.7 billion in December 2022 to N479.8 billion in September 2023.

    Transcorp, a leading conglomerate, has investments in various sectors including power, hospitality, and energy sectors.

    A segmental analysis showed improvements across the group. The hospitality businesses sustained strong growth, recording 31.76 per cent growth in revenue from N22.7 billion to N29.9 billion, significantly higher than pre-covid performance. Profit also grew by 62 per cent from N3.4 billion to N5.5 billion.

    Read Also: Transcorp consolidates power with investments

    The power subsidiaries’ revenue grew by 33.4  per cent from N73.6 billion to N98.2 billion, a performance attributed to the group’s innovative and resilient business strategy.

    President and Group Chief Executive Officer, Transnational Corporation of Nigeria (Transcorp), Dr. Owen Omogiafo, expressed enthusiasm and confidence in the group’s performance trajectory, stating:

    “Our group, with our diverse investment in power, hospitality, and energy sectors has reported remarkable results, demonstrating resilience and agility in the third quarter of 2023 amidst the prevailing economic headwinds, including forex challenges, Naira devaluation, gas challenges, and rising inflation.

    “We remain agile, constantly exploring dynamic ways to maintain value for all our stakeholders, and focused on driving sustainable growth, improving lives, and transforming Africa,” Omogiafo said.

    Transcorp Group has a shareholder base of approximately 300,000. Among its notable businesses are Transcorp Hilton Abuja, Transcorp Hotels Calabar, Transcorp Power, Transafam Power, and Transcorp Energy.

  • Transcorp retains positive rating

    Transcorp Hotels Plc, the hospitality subsidiary of Transnational Corporation of Nigeria Plc (Transcorp) and owner of the Transcorp Hilton, Abuja and Transcorp Hotels, Calabar, has retained its national scale ratings at A-(NG) and A2(NG) in the long-term and short-term, with the outlook accorded as stable.

    Concurrently, the national scale ratings accorded to the following Issuances affirmed Series 1 N10 billion Fixed Rate Bond: A-(NG), Stable Outlook; Series 2 N9.8 billion Fixed Rate Bond: A-(NG), Stable Outlook.

    According to GCR, the rating reflects Transcorp Hotels ability to maintain its market position as a leading brand in Nigeria’s hospitality industry, supported by the major renovation and facilities upgrade at Transcorp Hilton Abuja (‘THA’) and the subsequent improvement in pricing and occupancy rate. The available support to Transcorp Hotels as a member of Transnational Corporation of Nigeria Plc (“Transcorp”), and the partnership with Hilton Worldwide Limited (“Hilton”) is considered positive rating.

    In the report released in August, this year, it stated:  “Following the upgrade at THA and the accompanying repricing of the hotel facilities in fiscal year 2018, revenue improved across all service lines, with rooms and food and beverages rising 26 per cent and 28 per cent. Per management, the company is  exploring other opportunities and add-on services that could be offered to boost earnings going forward.’’

     

     

  • Transcorp’s profit down by 57% to N5.2b in first half

    Transnational Corporation of Nigeria (Transcorp) Plc witnessed major contractions in incomes and profitability in the first half of this year, raising concerns about the conglomerate’s ability to meet its performance in 2018.

    Key extracts of the interim report and accounts of the corporation for the half-year ended June 30, 2019, showed that gross income dropped by 30.2 per cent, while profit before tax halved by 56.8 per cent. Despite 59.2 per cent drop in taxes, net profit nosedived by 56.6 per cent.

    Group turnover dropped from N54.1 billion in the first half of 2018 to N37.8 billion in 2019 first half. Gross profit also declined to N17.3 billion as against N24.6 billion in comparable period of 2018. Profit before tax dropped from N11.9 billion to N5.2 billion, while profit after tax slumped to N4.7 billion as against N10.9 billion in the corresponding period of 2018.

    Total assets, however, rose by 3.4 per cent from N297.1 billion in first half of 2018 to N307.4 billion in first half of 2019. Shareholders’ funds also rose from N105.4 billion to N109.2 billion in the same periods.

    The half-year report further highlighted the slowdown in conglomerate’s performance after profit dropped by 61 per cent to N5.4 billion in first quarter of 2019. The three-month report for the period ended March 31, 2019 showed that turnover dropped from N26.30 billion in first quarter 2018 to N18.31 billion in first quarter 2019. Profit before tax dropped to N2.55 billion in 2019 as against N5.94 billion in comparable period of 2018. After taxes, net profit halved from N5.41 billion to N2.09 billion. Earnings per share consequently dropped from 5.55 kobo in first quarter 2018 to 1.58 kobo in first quarter 2019.

    Transcorp had distributed N1.22 billion as cash dividend for the 2018 business year, representing a dividend per share of 3.0 kobo. The audited report and accounts for the year ended December 31, 2018 had shown that Transcorp’s turnover rose by 30 per cent while profits before and after tax grew by 82 per cent and 94 per cent respectively.

    Group turnover posted a record growth to N104.2 billion in 2018 compared with N80.28 billion in 2017. Gross profit rose from N36.42 billion in 2017 to N48.25 billion in 2018. Profit before tax increased to N22.4 billion as against N12.3 billion while profit after tax jumped from N10.61 billion in 2017 to N20.63 billion in 2018.

    Transcorp’s Chairman, Mr. Tony Elumelu, said the conglomerate’s power subsidiary, Transcorp Power Limited, would be investing as much as $2.5 billion in power projects to help boost power supply in Nigeria.

    He said about $1billion has so far been injected by the company  in projects with a combined capacity of 700 megawatts while it is also bidding for Afam Electricity Generation Company, which operates a natural-gas fired power generation plant in Rivers State.

    “We have expressed interest in the acquisition of Afam power plant, which we are going to spend a lot of money on. It will give us 1,400 megawatts and we can do more,” Elumelu said.

  • Transcorp slows down in Q1

    Transnational Corpo-ration of Nigeria (Transcorp) Plc recorded a major contraction in performance in the first quarter as the conglomerate’s profit dropped by 61 per cent to N5.4 billion.

    Key extracts of the three-month report for the period ended March 31, 2019 showed that turnover dropped from N26.30 billion in first quarter 2018 to N18.31 billion in first quarter 2019.

    Profit before tax dropped to N2.55 billion in 2019 as against N5.94 billion in comparable period of 2018. After taxes, net profit halved from N5.41 billion to N2.09 billion.

    Earnings per share consequently dropped from 5.55 kobo in first quarter 2018 to 1.58 kobo in first quarter 2019.

    The performance in first quarter represented a slowdown for Transcorp, which had recently distributed N1.22 billion as cash dividend for the 2018 business year, representing a dividend per share of three kobo.

    The audited report and accounts for the year ended December 31, 2018 had shown that Transcorp’s turnover rose by 30 per cent while profits before and after tax grew by 82 per cent and 94 per cent respectively.

    Group turnover posted a record growth to N104.2 billion in 2018 compared with N80.28 billion in 2017. Gross profit rose from N36.42 billion in 2017 to N48.25 billion in 2018. Profit before tax increased to N22.4 billion as against N12.3 billion while profit after tax jumped from N10.61 billion in 2017 to N20.63 billion in 2018.

    Transnational Corporation of Nigeria (Transcorp)  Chairman Mr. Tony Elumelu said the conglomerate’s power subsidiary, Transcorp Power Limited, will be investing as much as $2.5 billion in power projects to boost power supply.

    He said the company has, so far, injected about $1 billion in projects with a combined capacity of 700 megawatts and that the company is also bidding for Afam Electricity Generation Company, which operates a natural-gas fired power generation plant in southern Rivers State.

    “We have expressed interest in the acquisition of Afam power plant, which we are going to spend a lot of money on. It will give us 1,400 megawatts and we can do more,” Elumelu said.

     

  • Transcorp wins bid for Afam’s N105.3b power plant

    • Quest Electricity is preferred bidder for YEDC

    The Technical Committee Chairman of the National Council on Privatisation (NCP), M.K. Ahmed, yesterday announced Transcorp Power Consortium as the winner of the commercial and financial bid for the privatisation of Afam Power Plc.

    Ahmed, represented at the bid opening in Abuja by Dr. Ayo Teriba, said the N105.3billion bid submitted by Transcorp Consortium “is hereby declared as the winning bid”. Diamond Stripes with N102.4billion is the runner up and reserved bidder.

    Commenting on the bid for Yola Electricity Distribution Company (YAEDC), Teriba said Quest Electricity the sole bidder, won with its offer of N19billion.

    Teriba had earlier explained that the trio of prospective investors: Diamond Stripes Power Consortium, Transcorp Power  Consortium and Unicorn Power Generation Consortium were in the bid for the acquisition of Federal Government’s 100 per cent shareholding in Afam Power Plc.

    Ahmed also revealed that although   Sandstream Nigeria Limited and Quest Electricity Limited were in the race for the acquisition of Federal Government 60 percent stakes in YEDC, the former firm was disqualified for not submitting a bank guarantee alongside the commercial proposal as required by the BPE.

    This led to the nullification and nullification of the Sandstream Nig Ltd submission  which automatically made Quest Electric the sole bidder for the acquisition of Federal  Government 60 per cent shares in the Yola DisCo.

    For the acquisition of the YEDC and Afam power shares, the  Bureau of Public Enterprises (BPE), Director General, Mr. Alex Okoh, said in line with the approval of the NCP, the BPE, called for expression of interests on August 16, 2018. Wednesday, September 16, 2018, according to him, was the deadline for the expression of interest, stating that at the deadline, 12 firms expressed interest  in Afam Power.

    He noted that during the evaluation of the expression of interest, nine firms obtained the qualifying marks and were consequently shortlisted to the request of proposal stage.

    The deadline for the submission of technical and financial bid was March 15, 2019, he said, stressing that the BPE on that date received technical and financial proposals from three firms and consortia out of the nine that prequalified.

    Okoh noted that only two firms, Quest Electricity Nigeria Limited and Sandstream Nig Limited were qualified for the Yola DisCo.

    Speaking, the President/Chief Executive Offier, Transcorp Plc, Mr. Valentine Ozigbo, said that “it has been very obvious that governments can’t run business. They need the private sector to do so. I am glad that we are here to prove once again that point.”

    He said that the purpose of his firm remains to impact lives and transform Nigeria.

    According to him, the company’s ability to turn around the Transcorp Hilton Hotel and Transcorp Power Limited in Ughelli, is an indication that the firm has what it takes to turn around the Afam Power plant.

    Meanwhile, the representative of the Nigerian Electricity Regulatory Commission (NERC), Aisha Mahmud, noted that the power sector is presently grappling with numerous challenges such as liquidity, non cost reflective tariff  and others.

    She however said that the regulator is working hard to ensure that there is a functional electricity sector and that by next year there is a high hope that everything would have been put in order for the efficiency of the industry.

    Representatives of the Economics and Financial Crimes Commission (EFCC) and the Directorate of State Services were in the ceremony to monitor its transparency.