How Transcorp Delivered its Exceptional Financial Results
By Nsikan Ikpe
The Chairman, Board of Directors, Transnational Corporation of Nigeria PLC , Transcorp, Mr. Tony Elumelu is upbeat and it is for a good reason: the conglomerate which for many years was one of the laggards in the nation’s capital market is now doing well!
And underscoring his resolve to continue to steer the group onto even greater heights, Elumelu has declared that under his watch, Transcorp would remain focused on its long term growth agenda, even as it continues to take advantage of developments in the business environment to improve upon its operations and the delivery of value to shareholders.
“ Due to the strategic initiatives implemented in 2017, the company delivered exceptional financial results, which have laid a firm foundation for its performance in the year ahead,” Elumelu disclosed while addressing shareholders at the recent Annual General Meeting, AGM of the conglomerate.
According to the financial statement of the company for the year ended December 31, 2017 and the report of the directors, the company paid a dividend of 0.02 kobo for every 50 kobo ordinary share.
Noting that Transcorp operates in critical sectors of the economy, power, hospitality and oil and gas, the Chairman expressed that the power sector will continue to face what he described as systematic issues, which impede the ability of the generation companies to deliver on their mandates.
He however noted that it was reassuring that the Federal Government on it part, has intensified its efforts to tackle some of the challenges such as the implementation of the Payment Assurance Plan (PAP).
During the year under review, gross earning for the group increased to N80.3 billion in 2017, compared to N59.4 billion in 2016 financial year, an increase of 35 percent. Much of this growth was mainly due to increase in power generation revenue.
Gross profit for the group was N36.4 billion, an increase of 21 percent from the N30.2 billion posted in the 2016 financial year. Group operating profit stood at N26.0 billion, representing 26 percent growth over the N20.7 billion recorded in 2016. This was driven by growth in revenue and continuous implementation of articulated cost management strategies across the group.
Profit before tax was N12.3 billion in 2017 compared to loss before tax of N5.9 billion in 2016. The profit was driven by revenue growth by the Group and drastic reduction in the level of unrealised exchange loss for the year. The reduction in the impact of exchange loss was achieved through conscious engagement with leaders and by exploring new sources for availability of foreign exchange on the backdrop of a more stable foreign exchange rate. With all of these improvements, there is therefore little wonder that profit after tax rose to N10.6 billion compared to the loss after tax of N1.1 billion recorded in 2016.
Mr. Tony O. Elumelu, Chairman, Transcorp