Transcorp reports strong earnings growth on improved power operations

25 Apr 2017
Financial Nigeria


Transnational Corporation of Nigeria's after-tax profit rose 24 percent to N1.49 billion in Q1 2017.

Tony Elumelu, Chairman, Transnational Corporation of Nigeria Plc

Transnational Corporation of Nigeria (Transcorp) has reported that its revenue rose by 19.5 percent during the 2017 first quarter ended on March 31st. The company’s revenue rose to N15.77 billion, compared to N13.19 billion reported in a similar quarter of last year.

The growth in revenue was driven mainly by a 34 percent rise in income from its power subsidiary from N9.5 billion in Q1’16 to N12.78 billion in the first quarter of this year.

However, revenue from Transcorp’s hospitality operations declined by 19 percent due to the six-week closure of the Nnamdi Azikiwe International Airport, Abuja. Given the drastically reduced traffic from business and leisure travelers, Transcorp earned lower income from sales of rooms, and food and beverages.

Transcorp said after-tax profit rose 24 percent to N1.49 billion in Q1’17, compared to N1.21 billion in a similar period of last year. The profit growth was supported by a 55 percent decline in income taxation.

Notwithstanding the growth revenue and profit, Transcorp’s results underperformed analyst’s estimates, according to CardinalStone Partners, a Lagos-based investment advisory firm.

Transcorp said it recorded a net foreign exchange loss of N315 million arising from its foreign currency loans. Basic earnings per share fell to 0.91 kobo per share compared to 1.12 kobo per share declared a year earlier.

Founded in 2004, Transcorp owns portfolio companies in the hospitality, power, agro-allied, and the oil and gas sectors. Tony Elumelu, Chairman of the United Bank of Africa (UBA), owns a 44 percent stake in Transcorp.

The company’s stock fell 4.12 percent to 93 kobo per share at the Lagos bourse on Tuesday.

Other Photos/Videos