Transcorp’s annual profit surges by 190%

Transnational Corporation Plc (Transcorp) reported a 189.7 per cent rise in net profit for last year, according to its recently released audited earnings report, amid a sharp boost to electric energy and capacity income, its principal revenue source.

Electric energy and capacity income more than doubled to N337.8 billion, helping revenue grow 107.1 per cent to N407.9billion.

The conglomerate, whose business segments span hospitality, energy and power, saw cost of sales soar by 141.6 per cent, eroding more than half of revenue.

A surge of more than threefold in natural gas and fuel costs drove that surge.

“We have been able to consistently record impressive growth across all indices year on year, despite the challenging macroeconomic environment,” said CEO Owen Omogiafo in a separate statement.

“In sectors we operate, we have delivered consistent growth by leveraging operational efficiency, strategic investments, and an uncompromising focus on value creation for our shareholders,” she added.

Transcorp Power, the power generation arm of the conglomerate, was listed in Lagos last March as an independent entity after a spin-off from its parent valued the company at N1.8 trillion. It now carries a market valuation of over N2.7 trillion.

In the period under review, Transcorp’s impairment loss and write-off of financial assets rose to N9.7 billion from N2.6 billion a year earlier, according to the cash flow statement.

Net profit margin, a key performance metric that indicates how much of revenue has turned into after-tax profit, stood at 23.1 per cent, compared to 16.6 per cent one year prior.

Profit before tax advanced to N136.7 billion from N58.8 billion, while post-tax profit climbed to N94.1 billion from N32.5 billion.

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Total assets were up by 41.8 per cent, driven by trade and other receivables,which grew by more than twofold during the period.

The conglomerate has announced a final dividend of N0.60 per share in addition to an earlier interim dividend of N0.40, taking its potential total payout for the year to N10.1 billion.

In October, Transcorp announced the completion of a share reconstruction aimed at boosting shareholder value, reducing its ordinary shares by 75 per cent to 10.2 billion units.