Transnational Corporation of Nigeria Plc (Transcorp),
Nigeria’s foremost conglomerate, has announced financial results for its second
quarter ended June 30, 2017, showing significant growth in key financial
indicators.
The company recorded N4.2bn as profit after tax (PAT) for
the half-year ended 30th of June 2017, translating into 134 per cent growth
compared to the loss of N12.19bn recorded in the corresponding period in 2016.
The conglomerate achieved the impressive growth in profit from a total
comprehensive income of N6.22bn, a 285 percent growth from the loss of N11.50bn
recorded in the second quarter of 2016.
While the company’s total assets capped at N264bn for the
period under review from N232bn attained as at December 31st,2016, the
shareholders fund grew to N93bn, up from N86bn as at December 2016.
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, the President and Chief
Executive Officer, Transcorp Plc., 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% -15% of total power
exported to the national grid during the 2nd Quarter of 2017,” Jibunoh said.
He noted that Transcorp Plc 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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Business