Wednesday, May 23rd 2018 6:24 AM
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Market Digest Nigeria

Business

Transcorp records 134% profit growth in H1

TRANSNATIONAL Corporation of Nigeria (Transcorp) Plc  has announced financial results for the half-year ended June 30, 2017, recording N4.2 billion as profit after tax (PAT). This translates to a 134 per cent growth against a loss position of N12.19 billion recorded in the corresponding period in 2016. The conglomerate achieved the growth in profit from a total comprehensive income of N6.22 billion, a 285 percent growth from the loss of N11.50 billion recorded in the second quarter of 2016. While the company’s total assets rose to N264 billion for the period under review from  N232 billion attained as at December 31, 2016, the shareholders’ fund grew to N93 billion, up from N86 billion

The company attributed the improved earnings and profits to increased production  in its power business, improvement of the economic climate, which has impacted positively on the operations of its hotel business, among other positive indicators. Commenting on the result, President/Chief Executive Officer, Transcorp, Mr. Adim Jibunoh, said the company’s performance highlights a significant recovery from the financial year 2016. “Our results show continued growth and a substantial step-up in profitability despite  the volatile economic environment. It was achieved largely through increased power output following improved gas supply. Our power plant, Ughelli Transcorp Power Company, has consistently ranked as the number one power producer, contributing an average of between  13 percent to 15 percent of total power exported to the national grid during the 2nd Quarter of 2017,” he said.

Jibunoh noted that the firm is on track for strong performance in the third quarter of 2017, as it has already initiated the process of enhancing the available capacity of the power generating plant from 620MW to over 720MW to take advantage of improving gas supply. “In addition, improvements in general economic activity in Abuja and return to operations  of the newly upgraded rooms at the Transcorp Hilton Hotels Abuja will boost occupancy and top line performance for Transcorp Hotels in the 2nd half of 2017. These changes are keeping us responsive to fast changing consumer trends and accelerating our drive  to a stronger financial performance in the second half of the year. We see this as a proven way of delivering long-term shareholder value,” he concluded.

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