Transnational Corporation of Nigeria reports N2.5bn PBT in Q1

0

By Kayode Tokede

Transnational Corporation of Nigeria Plc (Transcorp) has released its unaudited financial statements for first quarter (Q1) ended March 31, 2021, showing a significant increase in profit before tax to N2.5billion from N137.26million reported in prior Q1 2020.

The group’s profit after tax also increased from N80.79million in Q1 2020 to N2.04billion reported in Q1 2021.

About 59 per cent increase in revenue to N24.44billion in Q1 2021 from N15.39billion in Q1 2020 and 11 per cent drop in net finance cost to N3.69billion in 2021 from N4.14billion in Q1 2020 contributed to increase in profits.

From financial position, Transnational Corporation of Nigeria’s Total assets of the group grew by 2.7 per cent from N338.2billion in full year ended December 31, 2020 to N347.16billion as at March 31, 2021, while total equity increased by 1.11  per cent, from N114.41billion in 2020 to N115.7 billion in as at March 31, 2021.

While reacting over 2020 full year results, the President/Group CEO, Transcorp Plc, Owen Omogiafo in a statement had stated that, the performance was underpinned by execution of the group’s well-defined strategies to deliver growth and achieve its long term goals.

“We sustained and drove our growth agenda across all our business sectors in 2020, notwithstanding the challenging operating environment, emanating from the COVID-19 pandemic.

“We significantly advanced our strategic position as a leading player in the power sector, with the successful acquisition of 100 per cent ownership stake in Afam Power Plc and Afam III Fast Power Limited, together with a combined installed capacity of about 1,000MW, bringing our total power generation capacity to approximately 2,000 MW,” she said.

She said the company has commenced distributing internationally in the West African regional electricity market, as a member of the West African Power Pool (WAPP).

The CEO added that it continues to seek opportunities to deepen its position across the power value chain, as it delivers on its promise to power Nigeria.

“Despite the impact of the pandemic on our hospitality business, we responded quickly by embarking on several initiatives to adapt to the new normal and meet the needs of guests and staff in the pandemic era, whilst intensifying cost-saving mechanisms to minimise the losses brought about by the pandemic,” Omogiafo added.

Speaking on Transcorp’s outlook for 2021, Omogiafo emphasised that the group was focused on increasing momentum across all business lines.

“Transcorp Hotels Plc recently launched its asset-light business, ‘Aura by Transcorp Hotels,’ which leverages technology to provide travellers with accommodation options across Africa.

“Aura is a digital play that would revolutionalise the African hospitality industry and position Transcorp Hotels, to continue to dominate and increase its footprint across Africa,” she said.

Commenting on the results, the Chairman of Transcorp, Tony Elumelu, said: “Businesses across the globe had to adapt, be innovative and learn to manoeuvre the volatile macroeconomic environment the Covid-19 pandemic created.

“Though tough for all, we demonstrated our resilience and continued relentlessly in our mission to ensure we improve lives and transform Nigeria. By growing our investments in power and hospitality, we were able to continue to develop our businesses and generate the long-term value our shareholders expect.”