Transnational Corporation of Nigeria (Transcorp) has announced its audited full year (FY) 2014 financial results of 120 per cent growth in revenue of N41.3 billion, more than double the N18.8 billion made in 2013.
Strong contributions came from power business (Transcorp Ughelli Power) and hospitality (Transcorp Hotels).
Gross profit rose to N27.6 billion, from N14.4 billion in 2013, and operating profit to N13.6 billion, an increase of 33 per cent.
Net finance cost grew 208 per cent, from N2.5 billion in 2013 to N7.8 billion in 2014, mainly from foreign exchange losses and debt servicing on acquisition finance loan for Ughelli Power.
Profit before tax declined 14 per cent to N7.7 billion in 2014, from N9 billion in 2013. Total assets grew 14 per cent, from N149.6 billion in 2013 to N170.8 billion.
Transcorp President/Chief Executive Officer, Emmanuel Nnorom, expressed delight for the “impressive performance” despite the challenges in the operating environment.
He noted “significant growth” in top line and sustenance of margins within acceptable limits, despite the delayed implementation of the Transitional Electricity Market (TEM), exchange rate movement, and reduced occupancy arriving from security challenges and the viral epidemic in West Africa.
Nnorom expressed satisfaction with the performance of the group’s power business, which currently generates 610 mega watts (mw), up from 160 mw at acquisition in November 1, 2013.
He said the ability to outperform capacity targets agreed at privatisation reiterates commitment to excellence and diversification strategy.
“Going forward in 2015, we expect an even better performance across all our business focus areas, including the anticipated implementation of TEM and an increasing stability in the economy and tourist environment,” he added.
“Our new hotels development in Lagos and Port Harcourt are progressing well and our agribusiness division has commenced delivery of juice concentrates to international beverage manufacturers in Nigeria.”
Nnorom said with the signing of our production sharing contract (PSC) by the Nigerian National Petroleum Corporation (NNPC), Transcorp’s oil and gas business is on course for the drilling of its first well this year.
Transcorp, a publicly quoted conglomerate has a diversified shareholder base of over 300,000 investors – and a porfolio of investments in power, hospitality, agribusiness, and oil and gas.
Its notable businesses include Transcorp Hilton Hotel, Abuja; Transcorp Hotels Calabar; Ughelli Power; Transcorp Energy; and Teragro Commodities, operator of Teragro Benfruit plant (Nigeria’s first-of-its-kind juice concentrate plant).
