The Nation Newspaper

Tag: Transcorp

  • Firms scale NCP’s hurdle for Afam power bid

    The National Council on Privatisation (NCP) has granted approval to Diamond Stripes Consortium, Transcorp Power Consortium and Unicorn Consortium to proceed to the financial bids opening stage for the acquisition of 100 per cent shares in the Afam Electricity Generation Company (Afam Power Plc & Afam Three Fast Power Limited).

    Rising from its first meeting at the Presidential Villa, Aso Rock, Abuja, the Council noted that the two consortia met the benchmark score of 750 points after evaluation in accordance with the criteria set out in the Requests for Proposal (RfPs).

    The BPE, in a  statement said other decisions taken by the Council include: approval for Quest Electric Nigeria Limited to proceed  to the financial bids opening stage for the re-privatisation of the Yola Electricity Distribution Company (YEDC); appointment of Lead Capital Consortium as Financial Adviser for the restructuring, recapitalisation and partial privatisation of the Bank of Agriculture (BoA); and delisting of Transcorp Hilton Hotel, Abuja from post Privatisation monitoring by the BPE.

    Others are privatisation of the Nigeria Communication Satellite Limited (NigComSat) through a strategic core investor sale and commencement of the process of listing it in the schedule of the Public Enterprises (Privatisation& Commercialisation) Act 1999; and the appointment of Vesta Healthcare Partners as consultant to carry out a diagnostic review of the Nigerian Health Sector.

    The privatisation of Afam Power Plc & Afam Three Fast Power Limited could not be concluded during the first round of the power privatisation in 2013 due to issues arising from gas supply to the plant.

    Following the termination of the Share Purchase Agreement (SPA) signed between Taleveras (the then Preferred  Bidder) and BPE in 2016, Council at its meeting of 2107  approved the privatisation of the enterprise based on a strategy to be recommended by the Transaction Advisers.

    For the YEDC, although it was successfully privatised and handed over to the core investor in 2013, a force majeure was declared in 2015 by the core investor citing insecurity in the Northeast region of the country. Following this, the company was duly repossessed by the Federal Government.

    It is expected that the successful bidders will be responsible for operating the generation and distribution companies, making the necessary investments to improve the generation and distribution networks and customer service in line with the objectives of the Federal Government of Nigeria set out in the National Electric Power Policy (NEPP).

     

  • Transcorp to scale up power business with $2.5b new investment

    Transnational Corporation of Nigeria (Transcorp) Plc will scale up its power business with additional investment of about $2.5 billion as the conglomerate seeks to consolidate the profitability of its businesses.

    The board and management of the conglomerate yesterday presented the underlying facts behind its operations to the investing public at the Nigerian Stock Exchange (NSE).

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, 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 help boost power supply in Nigeria.

    He said the company has so far injected about $1 billion in projects with a combined capacity of 700 megawatts while 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.

    Chief Executive Officer, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Valentine Ozigbo, noted that the conglomerate with its investments in hospitality; power, oil and gas and others remains committed to delivering superior value to its shareholders.

    He said the focus of the company is to create an enabling environment for domestic and foreign investors to succeed, adding that the conglomerate has been well-positioned to continue to roll out profitably to its numerous investors.

    “Today, we own and manage the best business hotel in Africa, and are intent on improving tourism in Nigeria and beyond. We own and manage one of the most strategic power assets in Nigeria, and aim to meet the power needs of one out of every four Nigerians, and through this, help in poverty eradication and improving Nigeria’s competitiveness,” Ozigbo said.

    He said the group’s businesses are now contributing unprecedented revenue and profits and the group is also stronger in corporate governance as it consistently ranks among quoted companies that annually successfully finalize their audited accounts and organize their annual general meetings.

    He assured that all indications point to a stronger performance in the years ahead.

    “The exciting news is that where we are headed is even brighter; we will deepen our play in the sectors we currently operate in. We will operationalise our oil asset and invest in more sectors. And with the support of the stakeholders, especially the entire capital market community, we will be that conglomerate Nigerians will be most proud of,” Ozigbo assured.

    Key extracts of the audited report and accounts for the year ended December 31, 2018 showed 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.

     

     

  • Transcorp okays $2.5b for power sector

    The Transnational Cor-poration of Nigeria Plc yesterday said it plans to invest $2.5billion in the power sector to boost power supply across the country.

    The investment will be made through its subsidiary, Transcorp Power Limited.

    Transcorp Power has so far injected about $1 billion in projects with a combined capacity of 700Mw, Chairman, United Bank for Africa (UBA) and Transcorp Plc, Tony Elumelu said in Abuja.

    The firm submitted bid for Afam Electricity Generation Co. earlier this month, which operates a natural-gas fired power generation plant in southern Rivers state. Two other offers were received, the Bureau of Public Enterprise (BPE) said, and if Transcorp Power acquires the facility, it would add 700Mw to the firm’s power portfolio.

    “We’ve expressed interest in the acquisition of Afam power plant, which we’re going to spend a lot of money on. It’ll give us 1,400Mw and we can do more,” Elumelu said.

    He said the power sector is riddled by debt and Transcorp Power is owed about N90 billion ($250 million). “If they’re owing you that kind of money, it affects your ability to do more and more importantly, slows your enthusiasm,” he said.

    Africa’s most populous nation with almost 200 million people grapples with dire power supply which has impeded economic development for decades.

    Read also: ‘Max Okada is about empowerment, financial inclusion’

    Generation peaked just below 4,500 megawatts (Mw) on February 28, with a maximum capacity of 7,650Mw, according to the latest data from Ministry of Power.  South Africa, with a population a third of Nigeria’s, has an installed generation capacity of more than 47,000Mw.

    Under the current system, government-backed Nigerian Bulk Electricity Trading Company buys power from generating companies (GenCos) and sells  to distribution companies (DisCos) which have had problems paying NBET due to issues collecting receipts from consumers, leading to mounting liabilities.

    In 2017, the Federal Government approved a $2.2 billion payment guarantee for GenCos to help alleviate money owed by distribution firms.

    Elumelu declined to comment on reports that he is in talks to acquire two oil licenses from Royal Dutch Shell Plc. People familiar with the plan said in July that Heirs Holdings Ltd., another company run by the Elumelu, was discussing with Shell the purchase of oil mining licenses 11 and 17.

  • Transcorp records N20.6b Profit After Tax

    Transnational Corporation of Nigeria Plc (Transcorp), Nigeria’s diversified listed conglomerate, has announced its audited results for the year ended 31st December 2018, with Profit After Tax (PAT) ofN20.6 billion. The figure is 94 per cent  higher than  N10.6 billion recorded in the previous year.

    The group recorded improvement within the year as turnover grew by 30 per cent to N104.2 billion. Profit Before Tax (PBT) increased to N22.4 billion from N12.3 billion in 2017, depicting an 82 per cent year-on-year growth.

    “We are proud to have ended the year on a high-note while sustaining a strong performance, which is a reflection of our sound business strategy,” said Valentine Ozigbo, Transcorp’s President and Chief Executive Officer, who took over at Transcorp in January 2019. “We will continuously strive to deliver significant value to our stakeholders while achieving our long-term goals,” he said.

    He further stressed that “This result was achieved due to the increased revenue from the power and hospitality segments of the group. In addition, we were able to cut down on our loss from Forex arising from financing activities by 30 per cent year-on-year as we experienced a relatively stable exchange rate during the fiscal year-ended 2018, this no doubt impacted our Profit before tax as it soared 82 per cent year-on-year.”

    Ozigbo added “Transcorp Power Ltd has continued to explore opportunities created by the eligible customer framework initiated by the Federal Government. We are at an advanced stage of negotiations with a number of eligible customers, which will translate into transactions in the months ahead. Our hospitality subsidiary, Transcorp Hotels Plc, also maintained its history of profitability in 2018, displaying the impact of our recent US$100m upgrade at the Transcorp Hilton Abuja and the immense value placed on the hotel’s best-in-class hospitality services.”

    Reflecting on the results, the Chairman of Transcorp,  Tony O. Elumelu, stated, “We remain committed to our purpose of improving lives and transforming Nigeria by powering our industries and businesses while providing our local and international guests with unrivalled hospitality services. This is our way of creating sustainable value for all our stakeholders.”

  • Transcorp doubles net profit to N20.6b

    Transnational Corporation of Nigeria (Transcorp) Plc nearly doubled its net profit in 2018 as the conglomerate rode on the back of improved performance across its businesses to deliver its strongest results in recent years.

    Key extracts of the audited report and accounts for the year ended December 31, 2018 showed 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.

    The board of directors of the conglomerate has recommended payment of N1.22 billion as cash dividend for the 2018 business year, representing a dividend per share of 3.0 kobo.

    Chief Executive Officer, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Valentine Ozigbo, said the performance was a reflection of the group’s sound business strategy.

    He noted that the overall performance was boosted by increased revenue from the power and hospitality segments of the group while the group was also able to cut down on its loss from foreign exchange arising from financing activities by 30 per cent.

    According to him, Transcorp Power Ltd has continued to explore opportunities created by the eligible customer framework initiated by the Federal Government and it is at an advanced stage of negotiations with a number of eligible customers, which will translate into transactions in the months ahead.

    He added that the group’s hospitality subsidiary, Transcorp Hotels Plc, also maintained its history of profitability in 2018, displaying the impact of its recent $100 million upgrade at the Transcorp Hilton Abuja and the immense value placed on the hotel’s best-in-class hospitality services.

    “We will continuously strive to deliver significant value to our stakeholders while achieving our long-term goals,” Ozigbo, who took over in January 2019 stated.

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu reassured that the group remained committed to its purpose of improving lives and transforming Nigeria by powering industries and businesses while providing local and international guests with unrivalled hospitality services.

    He said the group would continue to create sustainable value for all its stakeholders.

    Transcorp Group comprises strategic investments in the power, hospitality, agribusiness and oil and gas sectors. Its notable businesses include Transcorp Hilton Abuja, Transcorp Hotels Calabar, Transcorp Power and Transcorp Energy. It is one of the largest quoted companies, in terms of shareholders’ number, with a shareholder base of about 300,000 shareholders.

  • Tony Elumelu plots shindig for mom

    CHAIRMAN of Heirs Holdings, the United Bank for Africa, Transcorp and founder of The Tony Elumelu Foundation, Tony Elumelu, is in a joyous mood. This is not unconnected with the fact that his mother, Suzanne, is 90 and it is worth celebrating.

    Elumelu on his Tweeter handle said he would not have been what he is today without his mother.

    Celebrating his mother on his Instagram page, the philanthropist revealed he and his family are counting down to the milestone.

    He wrote: ‘This is symbolic in many ways for me. I always talk about the need to empower women across Africa because I know firsthand the power of just one enterprising woman. Suffice it to say that I wouldn’t be the man I am today without my mom.’

  • Transcorp grows H1 net profit by 161% to N10.9b

    Transnational Corporation of Nigeria (Transcorp) Plc recorded impressive growths across key performance indices in the first half of this year as the conglomerate rode on the back of robust growths in its power and hospitality businesses to drive group performance.

    Key extracts of the interim report and accounts of Transcorp for the half-year ended June 30, 2018 showed that group turnover rose by 58 per cent to N54.09 billion in first half 2018 as against N34.17 billion recorded in corresponding period of 2017. Gross profit grew by 65 per cent to N24.57 billion in first half 2018 as against N14.87 billion recorded in first half 2017.

    Profit before tax jumped by 164 per cent from N4.53 billion to N11.94 billion while profit after tax jumped y 161 per cent to N10.88 billion in first half 2018 compared with N4.16 billion in corresponding period of 2017. Earnings per share also leapt from 3.87 kobo in first half 2017 to 11.60 kobo in first half 2018.

    Transcorp’s group strategic investments include power, hospitality, agribusiness and oil and gas sectors. The group’s notable businesses are Transcorp Hilton Hotel, Abuja; Transcorp Hotels Calabar; Transcorp Power Plc and Transcorp Energy Limited.

    President, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Adim Jibunoh the said the first half results showed the strength of the conglomerate’s business model and its ability to deliver significant value to its stakeholders.

    “At Transcorp, we continuously strive to achieve our long-term targets in each of the sectors we operate in,” Jibunoh said.

    He pointed out that the strong performance was due to the increase in power generation resulting from improved gas supply and increased generation capacity of its subsidiary, Transcorp Power Limited as well as Transcorp’s hospitality business, which maintained its market leadership with occupancy levels that are ahead of competition.

    He added that service excellence is also a core focus of the group, with continuous improvement in delighting its customers noting that the ongoing renovation of the Transcorp Hilton Abuja is part of this service ethos of the group.

    He expressed confidence that the group’s business strategy, strong culture of efficiency and overall corporate governance would sustain the strong growth momentum to ensure the conglomerate close the year on a very strong position.

    The first half performance further reinforced Transcorp’s turnaround after the conglomerate recovered from a pre-tax loss of N5.93 billion in 2016 with a pre-tax profit of N12.31 billion in 2017. The audited report and accounts of Transcorp for the year ended December 31, 2017 showed that turnover rose by 35 per cent from N59.42 billion in 2016 to N80.28 billion in 2017. Gross profit increased by 21 per cent to N36.42 billion in 2017 compared with N30.17 billion in 2016. It reversed from a loss before tax of N5.93 billion in 2016 to profit before tax of N12.3 billion in 2017. After, taxes, net profit stood at N10.61 billion in 2017 as against net loss of N1.13 billion in 2016.

    The balance sheet position of the conglomerate also improved in 2017 as total assets rose by 23 per cent to N285.52 billion in 2017 as against N232.16 billion in 2016. Shareholders’ funds rose by 11 per cent from N86.45 billion in 2016 to N95.71 billion in 2017.

     

     

  • Transcorp grows net profit by 161% to N10.9b

    Transnational Corporation of Nigeria (Transcorp) Plc recorded impressive growths in turnover and profitability in the first half with net profit rising by 161 per cent to about N10.9 billion.

    Key extracts of the interim report and accounts of Transcorp for the six-month period ended June 30, 2018 showed that turnover rose from N34.17 billion in first half 2017 to N54.09 billion in first half 2018. Profit before tax jumped by 163.6 per cent to N11. 94 billion in first half 2018 as against N4.53 billion recorded in comparable period of 2017.

    After tax, net profit grew by 161.2 per cent from N4.16 billion in 2017 to N10.88 billion in 2018. Earnings per share also leapt from 3.87 kobo in first half 2017 to 11.60 kobo in first half 2018.

    The first half performance further reinforced Transcorp’s turnaround after the conglomerate recovered from a pre-tax loss of N5.93 billion in 2016 with a pre-tax profit of N12.31 billion in 2017. The audited report and accounts of Transcorp for the year ended December 31, 2017 showed that turnover rose by 35 per cent from N59.42 billion in 2016 to N80.28 billion in 2017. Gross profit increased by 21 per cent to N36.42 billion in 2017 compared with N30.17 billion in 2016. Operating profit increased by 25 per cent from N20.72 billion in 2016 to N26.03 billion in 2017.

    Foreign exchange loss reduced to N4.55 billion in 2017 as against N18.7 billion in 2016 while net finance cost also improved from N26.64 billion to N13.73 billion. The company made provisions for N1.7 billion taxes in 2017 compared with tax credit of N4.80 billion received in 2016. With these, it reversed from a loss before tax of N5.93 billion in 2016 to profit before tax of N12.3 billion in 2017. After, taxes, net profit stood at N10.61 billion in 2017 as against net loss of N1.13 billion in 2016.

    The balance sheet position of the conglomerate also improved in 2017 as total assets rose by 23 per cent to N285.52 billion in 2017 as against N232.16 billion in 2016. Shareholders’ funds rose by 11 per cent from N86.45 billion in 2016 to N95.71 billion in 2017.

    Transcorp Plc Chief Executive Officer, Mr. Adim Jibunoh said the conglomerate’s businesses are in good position to sustain growth going forward.

    “We are confident of improved fundamentals going forward, as we increase our available generation capacity to above 800 megawatts 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,” Jibunoh said.

    Transcorp’s group strategic investments include power, hospitality, agribusiness and oil and gas sectors. The group’s notable businesses are Transcorp Hilton Hotel, Abuja; Transcorp Hotels Calabar; Transcorp Power Plc, Teragro Commodities Limited and Transcorp Energy Limited.

  • Transcorp appoints new ED

    The board of Transnational Corporation of Nigeria (Transcorp) Plc has appointed Mr. Christopher Ezeafulukwe as an Executive Director. The appointment takes effect from July 1, 2018.

    Currently the Group General Counsel and Head, Business Development, Ezeafulukwe will in his new role focus and drive the development of new commercial interests as well as the optimisation of Transcorp’s existing investments in the power and oil and gas sectors.

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu described Ezeafulukwe as an “invaluable member of the Transcorp team” whose “insights, drive and commitment to business execution are exemplary”.

    “His appointment will deepen and open new doors of commercial opportunities for Transcorp and all our stakeholders as we pursue our goal of providing power in every home, school, hospital and business enterprise in Nigeria,” Elumelu said.

    Group President, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Adim Jibunoh, noted that brings exceptional value to the group.

    “We are certain that he will deliver on the high expectations of the board and management,” Jibunoh said.

    Ezeafulukwe brings to this role over 19 years’ experience in business development, legal advisory and company secretariat roles amongst others in a career spanning several industries. He holds an LL.B degree from the University of Lagos, a B.L-second class upper division, from the Nigerian Law School, an LL.M from the University of Lagos and another LL.M in Energy, Environmental & Natural Resources Law from the University of Houston, Texas.

    He is a member of the Nigerian Bar Association (NBA), Institute of Chartered Secretaries & Administrators of Nigeria (ICSAN), Association of International Petroleum Negotiators (AIPN) and until recently a member of the Executive Council of Association of Power Generation Companies of Nigeria.

     

  • Transcorp appoints new ED

    THE Transnational  Corporation of Nigeria (Transcorp) Plc board has appointed Mr. Christopher Ezeafulukwe as an Executive Director. The appointment takes effect from July 1, 2018.

    Ezeafulukwe, who before his appointment was the Group General Counsel and Head, Business Development, will drive the development of new commercial interests as well as the optimisation of Transcorp’s existing investments in the power and oil and gas sectors.

    Transnational Corporation of Nigeria (Transcorp) Plc Chairman, Mr. Tony Elumelu, described Ezeafulukwe as an “invaluable member of the Transcorp team” whose “insights, drive and commitment to business execution are exemplary”.

    “His appointment will deepen and open new doors of commercial opportunities for Transcorp and all our stakeholders as we pursue our goal of providing power in every home, school, hospital and business enterprise in Nigeria,” Elumelu said.

    Group President, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Adim Jibunoh, noted that Ezeafulukwe brings exceptional value to the group.

    “We are certain that he will deliver on the high expectations of the board and management,” Jibunoh said.

    Ezeafulukwe brings to this role over 19 years’ experience in business development, legal advisory and company secretariat roles among others in a career spanning several industries. He holds an LL.B degree from the University of Lagos, a B.L-second class upper division, from the Nigerian Law School, an LL.M from the University of Lagos and another LL.M in Energy, Environmental & Natural Resources Law from the University of Houston, Texas.

    He is a member of the Nigerian Bar Association (NBA), Institute of Chartered Secretaries & Administrators of Nigeria (ICSAN), Association of International Petroleum Negotiators (AIPN) and until recently a member of the Executive Council of Association of Power Generation Companies of Nigeria.