WASHINGTON: In spite of this challenging operating environment, Transnational Corporation of Nigeria was able to close 2016 financial full year result with a record of revenue growth of 46 per cent. The growth in revenue was an impressive one considering the fact that Transcorp’s power business contributes 75 per cent of Transcorp earnings, while its Transcorp Hotel subsidiary contributes 25 per cent to the total revenue of the Group. At a press briefing during the weekend, President/CEO of Transcorp, Emmanuel Nnorom, while presenting the result, explained how Transcorp Subsidiaries continued waxing strong with Transcorp Hotels Plc, recording a profit in 2016 and shifting their focus in 2017 to gunning for more market share. With the profit recorded in the Transcorp Hotels Plc, Nnorom noted that the shareholders would be pleased with how the subsidiary manoeuvred its way through a recession to achieve N5 billion profit against all odds and now looks to pay N.40 dividend to shareholders.
The company for the financial year ended December 31, 2016 posted a profit before tax of N5.93 billion against N3.32 billion achieved in the comparative period of 2015. Its group revenue stood at N59. 42 billion in contrast with N40.75 billion in 2015. The company’s total assets stood at N232.16 billion, representing 27 per cent rise when compared with N182 billion recorded in the corresponding period of 2015. Speaking on the Power subsidiary of the Group, Nnorom noted that the Federal Government’s renewed commitment to the power sector by way of the recent N700 billion guarantee to NBET was a great boost to the collective confidence of power sector stakeholders. He said “The first thing international investors want to know is how we get paid for the power we generate? In 2016 that question had become near impossible to answer. The undeniable fact is that if we truly intend to develop Nigeria we must first develop the power sector. This recent move by the federal government appears to be a step in the right direction.”
According to the president, the three factors that proved most challenging for Transcorp Power Limited last year were; gas supply, a weakened and illiquidity issues exacerbated by roughly N50 billion owed to Transcorp Power Limited by NBET as at the end of 2016. 2017 however, kicked off by presenting the light at the end of the proverbial tunnel. It should be noted that as the naira regains its value it instantly improves the bottom line of Transcorp Plc as foreign exchange loans are solely responsible for reported loss. The president therefore noted that as long as 2017 maintains the positive momentum it has started with, the future looks bright for Transcorp Plc. and its investors.
