The 2018 operational year ended on a positive note for Transnational Corporation of Nigeria Plc as the company declared a profit before tax of N22.4 billion.
The figure, already approved by the shareholders at its 13th annual general meeting held in Abuja at the weekend, represents an 82 per cent improvement over 2017 operational figure of N12.7 billion.
Speaking at the event, the Chairman of the Group, Mr Tony Elumelu, the company was excited to have recorded such performance despite the challenging operating environment.
According to him, Transcorp’s total assets stood at N297.1bn in 2018, pointing out that this was an increase of four per cent when compared to the 2017 figure of N285.5bn.
Elumelu said that operating income during the period grew by 40 per cent to N34.6bn in 2018, from N26bn the previous year.
He said during the period, the group’s gross earnings rose to N104.1bn as against N80.3bn in 2017.
On the outlook for 2019, he said that Transcorp would continue to sustain its strategic partnerships with key stakeholders.
“For instance, in the power sector, we closed the year 2018 work available capacity of over 600 Megawatt. In 2019, we plan to maintain the available capacity at this level.
“This will keep us on track to achieve our long term target to be responsible for the generation of 25 per cent of Nigeria’s peer consumption needs.
“We will sustain our strategic partnership with gas suppliers and other stakeholders in order to ensure adequacy of the quantity and quality of gas supply.
“We will equally continue our engagement with Nigeria Bulk Electricity Traders and Federal Government in finding sustainable solutions that would result in full payment of the debt owed Transcorp Power by NBET.”
With regards to its operations in the oil sector, Elumelu said that Transcorp has successfully obtained approval for extension of phase one for the exploration period of Oil Prospecting License 281.
This, he stated, would be done under the Production Sharing Contract entered into with the Nigeria National Petroleum Corporation for an additional period of two years.
“This (extension) has given us additional time to fulfil our work commitments, including drilling of the appraisal wells, under the first phase of the PSC.
“The board is working with management to successfully optimise the opportunities presented to Transcorp by this oil and gas asset.
“We are positive that more aggressive engagements with investors, which we are committed to in 2019, would lead to effective execution of OPL 281 work obligations as provided in the PSC,”, he added.
Transcorp Power Ltd, the group’s power sector subsidiary, has achieved a significant increase in gas supply to its plants and consequently power generation and transmission to the national grid. Its power generating capacity is estimated to have exceeded 800 megawatts at the end of 2018.
Healthy growth in revenue has been the company’s strength for elevated performance since 2017. The coming on stream of the energy business multiplied group revenue more than five times in 2017. The upturn in turnover was sustained in 2018 with an increase of 29.7% to N104.2 billion. This is just slightly below the projected revenue figure of N107 billion for Transcorp for the year.