Transcorp earnings make turnabout, records 134% profit

Transcorp earnings made a turnabout, recording 134% profit in its second quarter which ended on June 30, 2017, as against the loss recorded in 2016.

According to a statement released by the company, the improved earnings is due to the improved economic climate, which impacted operations of its hotel business and increased production in its power business.

It recorded N4.2 billion as profit after tax (PAT), translating into 134% growth compared to the loss of N12.19bn recorded in the corresponding period in 2016.

It also achieved a growth in profit of a total income of N6.22bn, a 285% growth from the loss of N11.50bn recorded in the second quarter of 2016.

The company’s total assets capped at N264bn for the period under review from N232bn attained as at December 31, 2016, and shareholders fund grew to N93bn, from N86bn as at December 2016.

Commenting on the result, Adim Jibunoh, chief executive officer of the company, said: “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 the company has 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.”

Transnational Corporation of Nigeria Plc (Transcorp) is a publicly quoted conglomerate with investments in the power, hospitality, agribusiness and oil and gas sectors.